Competition weekly news summary
29 January 2016

Antitrust

  • Commission fines car parts producers € 137 789 000 in cartel settlement (Alternators and Starters case)
    27 January 2016
    The European Commission has imposed fines of € 137 789 000 on Melco (Mitsubishi Electric) and Hitachi for participating in a cartel for alternators and starters with another firm, Denso, in breach of EU antitrust rules. Denso was not fined as it revealed the existence of the cartel to the Commission. All companies acknowledged their involvement and agreed to settle the case.
    Read more >

State Aid

  • Commissioner Vestager and Italian Minister of Finance Padoan reach agreement on Italian bad bank
    26 January 2016
    After the meeting, Commissioner Vestager said: "I welcome the understanding reached today with Minister Padoan on the terms for setting up a guarantee scheme to support Italian banks in dealing with their non-performing loans. The guarantees are to be priced at market terms, so do not constitute state aid. Today's understanding follows constructive discussions with the Italian authorities and is an important step to support Italian banks in dealing with their non-performing loans. Together with other reforms undertaken and planned by the Italian authorities, it should further improve the banks' ability to lend to the real economy and drive economic growth."
  • Commission opens in-depth investigation into support for Iberpotash in Spain
    26 January 2016
    Following a complaint, the European Commission has opened an in-depth investigation into whether public measures in favour of Spanish mining company Iberpotash gave it a selective advantage over its competitors, in breach of EU State aid rules. Iberpotash (renamed ICL Iberia Súria & Sallent in 2014) owns and operates several potash mines in the Catalonia region of Spain. Potash is mainly used to make fertiliser. The mining and primary processing of potash also produces salt as a by-product.
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Court

  • Case C-514/14P Èditions Odile Jacob SAS vs. European Commission (Lagardère / VUP merger)
    28 January 2016
    The Court of Justice ruled on Odile Jacob's appeal against a General Court judgment of September 2014. The 2014 judgment had dismissed Odile Jacob's action for annulment of a Commission decision of May 2013 regarding the acquisition of Vivendi Universal Publishing by Lagardère. The Commission had approved the merger in 2004, subject to the carving out of assets now known as Editis under the supervision of an independent trustee. Upon an action by Odile Jacob, whose bid for Editis was unsuccessful, the General Court had annulled the Commission's July 2004 decision to approve the French investment group Wendel as buyer of these assets, questioning the independence of the trustee. The Court of Justice confirmed this decision. In May 2013, upon a new request by Lagardère, who had appointed a different trustee, the Commission approved Wendel for the second time as purchaser of Editis with retroactive effect. The Court of Justice has now dismissed Odile Jacob's appeal against this decision and entirely upheld the Commission's findings. The Court held in particular that the Commission took the right course of action to comply with the ruling annulling its first buyer approval. In particular, the Commission was right to re-assess Wendel as purchaser of Editis and to approve the buyer after a new report drawn up by a different, fully independent trustee. 
    See Court of Justice case page>
    Read the CoJ press release>
  • Case T-507/12 Slovenia vs. European Commission
    28 January 2016
    In 2012, the Commission ordered Slovenia to recover illegal state aid from the Slovenian ski-maker Elan. The Slovenian State brought an Action for annulment. The Court has now rejected the Action and confirmed the Commission's findings. The Court held that a 2008 capital injection, carried out by Elan's publicly-owned shareholders, was imputable to Slovenia. The Court confirmed that the capital injection was not carried out on market terms and therefore granted a selective advantage to Elan over its competitors.
    See Court of Justice case page>
  • Case T-427/12 Austria vs. European Commission (BayernLB state aid case)
    28 January 2016
    The General Court rules on Austria's action for annulment of a Commission decision of July 2012 authorising restructuring aid in favour of BayernLB, including a €2.6 billion funding guarantee granted by Austria in the context of the nationalisation of the Austrian Hypo Group Alpe Adria (HGAA), a subsidiary of BayernLB. The guarantee covered intra-group funding that remained with HGAA after the nationalisation. Austria guaranteed that the amount would be reimbursed so that BayernLB reduced the risk that it would face in the event of HGAA’s insolvency. This gave the bank an economic advantage. The Commission therefore assessed the guarantee in the context of BayernLB's restructuring plan and found that the guarantee involved compatible state aid. Austria contended that the guarantee involved no state aid. The Court dismissed the action and confirmed the Commission's findings. The Court also held that the civil action pending before a national court had no influence on the question whether the measure constitutes state aid and therefore the Commission was not bound to take it into account.
    See Court of Justice case page (German only)>
    Read the CoJ press release>

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Published by the Competition Directorate General of the European Commission. The content of this publication does not necessarily reflect the official position of the European Commission. Neither the Commission nor any person acting on its behalf is responsible for the use which might be made of the above information.

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