Competition weekly news summary
Friday, October 23, 2009

Conferences and Speeches

  • Consumer welfare: more than a slogan
    Opening address at conference "Competition and Consumers in the 21st century" Brussels, Neelie Kroes
    21 October 2009
    "Consumers are not always able to protect their own interests in the market, so a market referee is essential. It's not as simple as protecting the weak or small against the big and strong. We step in when European market rules are broken, regardless of how big or small the company is."
  • Private Enforcement of State Aid rules
    State aid conference, Brussels, Neelie Kroes
    19 October 2009
    "I hope that over time judges will find it natural to write or simply pick up the phone and talk to a Commission official about a certain issue. This is never binding, only helpful – the stuff of Mr Kissinger's dreams you might say."

Competition

  • Commission's Online Roundtable on Music opens way to improved online music opportunities for European consumers
    20 October 2009
    A joint statement setting out general principles that would underpin the online distribution of music in the future and so lead to improved online music opportunities for European consumers was signed by participants at the fourth meeting of the Roundtable on the Online Distribution of Music, chaired by Competition Commissioner Neelie Kroes on 19 th October 2009. The participants at the Roundtable were Amazon, BEUC, EMI, iTunes, Nokia, PRS for Music, SACEM, STIM and Universal.

Mergers

  • Commission clears proposed acquisition of Schering-Plough by Merck
    23 October 2009
    The Commission found that competition concerns could be excluded in the area of human health markets, because Merck's and Schering-Plough's products were not close competitors and a sufficient number of credible competitors would remain in the market after the proposed transaction. With respect to animal health, any overlaps were removed by Merck selling its 50% share in the joint-venture Merial to Sanofi-Aventis, giving Sanofi-Aventis sole control and thus ensuring competition in the market.
  • Commission approves proposed acquisition of Iberdrola's stake in SAGGAS by RREEF Fund
    22 October 2009
    The Commission cleared the proposed acquisition by RREEF Pan-European Infrastructure Fund LP of the UK of the shares currently owned by the Spanish energy company Iberdrola in Planta De Regasification De Sagunto S.A. (SAGGAS), also of Spain. The Commission's examination found that a sufficient number of competitors were able to provide natural gas from both regasification plants and international pipelines. In addition, new regasification plants are to be constructed and a majority of existing plants are increasing their capacity. RREEF's market share would remain moderate.
  • Commission approves proposed acquisition of Baxi by Remeha
    22 October 2009
    The Commission's investigation showed that the horizontal overlaps between the parties' activities are limited and that the additional market share brought about by Remeha's acquisition of Baxi is generally small. In addition, the Commission found that the parties are not perceived as the closest competitors and that they will face several strong competitors in all market sectors.
  • Fortis Bank Nederland and ABN AMRO Bank Nederland - Commission grants extension of deadline for implementation of remedies
    20 October 2009
    The Commission decided to grant an extension of the deadline for the divestment of Fortis' corporate banking business to Deutsche Bank.
  • Commission approves acquisition of certain E.ON power plants and drawing rights by Electrabel
    16 October 2009
    The Commission’s examination of the proposed transaction showed that the horizontal overlaps between the activities of Electrabel and the acquired assets were limited and that, therefore, the transaction would raise no competition concerns. Electrabel is not a major player in Germany and the acquired capacity would represent a minor increment.
  • Commission approves acquisition of Spring by Adecco
    16 October 2009
    The Commission’s investigation showed that the overlaps between Adecco and Spring Group are limited in most Member States. The only significant overlap occurs in the provision of temporary employment services for IT specialists in the UK. However, also in this area the merged entity would not raise competition concerns. It would continue to be constrained by strong competitors.

State aid

  • Commission opens in-depth investigation into aid package for German HSH Nordbank AG
    23 October 2009
    The Commission opened an in-depth investigation into the €10 billion risk shield and €3 billion recapitalisation provided by the German Länder of Hamburg and Schleswig-Holstein to HSH Nordbank AG. On the basis of the information provided so far, the Commission has doubts as to the compatibility of the measures with its Communication on impaired assets, in particular as regards the eligibility and valuation of assets covered by the risk shield and remuneration of the Länder for the risk shield provided. Furthermore, the Commission must verify whether the measures are liable to restore the long-term viability of the bank.
  • Commission approves Cypriot scheme to support credit institutions
    22 October 2009
    The Commission approved a Cypriot scheme using special government bonds to reinforce stability in financial markets and mitigate the effects of the crisis. The Commission found the measure to be in line with EU state aid rules because it is limited in time and scope, requires adequate remuneration and foresees sufficient safeguards to minimise distortions of competition.
  • Commissioner Kroes expresses concerns that New Opel aid is conditional on choice of Magna/Sberbank
    16 October 2009
    Commissioner Kroes has written to Germany's Economics Minister Karl Theodor zu Guttenberg expressing concerns that aid promised by the German Government to New Opel might be subject to the pre-condition that a specific bidder, Magna/Sberbank, was selected to acquire a majority of the shares. The Commissioner indicated that such a precondition for the aid would be incompatible with EC Treaty state aid and internal market rules.

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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.

© European Union, 2009. Reproduction is authorised provided the source is acknowledged.

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