Competition weekly news summary
30 January 2015


Mergers

  • Commission approves acquisition of certain businesses of Abbott Laboratories by Mylan, subject to conditions
    28 January 2015
    The Commission has cleared the proposed acquisition of Abbott Laboratories' Non-U.S. Developed Markets Specialty and Branded Generics Business ("Abbott EPD-DM"), by Mylan, Inc ("Mylan"). Abbott EPD-DM is a Swiss-based manufacturer focused on distributing branded ex-originator products with expired patents and with internal production capabilities in Europe, Canada and Japan. Mylan is a US-based producer of generic pharmaceuticals. The decision is conditional upon the divestment of a number of Mylan's businesses in Germany, the United Kingdom, France, Ireland and Italy. The Commission had concerns that the transaction, as initially notified, would have reduced competition on the market for several medicines. The commitments offered by Mylan address these concerns.
    Read more >
  • Commission approves acquisition of GSK's oncology business by Novartis, subject to conditions
    28 January 2015
    The Commission has found the proposed acquisition of the oncology business of GlaxoSmithKline plc. ("GSK") of the United Kingdom by Novartis of Switzerland to be in line with the EU Merger Regulation. Both companies are active globally in the development, distribution and marketing of pharmaceutical products. The decision is conditional upon the divestment of two of Novartis' cancer treatments: LGX818, a B-Raf inhibitor, and MEK162, a MEK inhibitor. B-Raf inhibitors and MEK inhibitors are therapies that block cell proliferation, responsible for tumour growth and progression. They can be used to treat a number of different cancers. The Commission had concerns that the transaction would have reduced competition and innovation for these products. The commitments address these concerns.
    Read more >
  • Commission approves both GSK's acquisition of Novartis' vaccines business and a consumer healthcare joint venture between GSK and Novartis, subject to conditions
    28 January 2015
    The Commission has cleared both, the proposed acquisition of the vaccines business of Novartis by GlaxoSmithKline ("GSK"), as well as the proposed creation of a new entity combining the consumer health activities of GSK and Novartis. The decision is conditional upon the divestiture of assets in the vaccines and consumer health businesses. The Commission had concerns that the transaction would have eliminated an important competitor to GSK for the supply of several vaccines and consumer health products, which might lead to price increases for European consumers. The commitments address these concerns.
    Read more >
  • Commission continues its investigation of the Orange / Jazztel merger without referral to Spain
    26 January 2015
    The Commission has decided not to refer Orange's planned acquisition of Jazztel to the Spanish competition authority for assessment under Spanish competition law. The Commission concluded that it was better placed to deal with the case with a view to ensuring consistency in the application of the merger control rules in the fixed and mobile telecommunications sectors across the European Economic Area (EEA).
    Read more >

State aid

  • Commission approves UK flood reinsurance scheme
    29 January 2015
    The Commission has approved a UK reinsurance scheme aimed at ensuring the availability of domestic insurance at affordable prices for flood-related damage. The scheme ("Flood Re") will set up a pool to provide reinsurance for the flood risk element from those households deemed at high risk of flooding. It will be funded partially by an industry-wide levy, which may confer an economic advantage to the pool over its competitors and involve state aid. However, the Commission has concluded that the scheme is compatible with EU state aid rules, because such insurance cover might not otherwise be sufficiently available on the private market, and the scheme remedies the market failure without unduly distorting competition.
    Read more >

Court

  • Cases T-341/12 and T-345/12 hydrogen peroxide cartel
    28 January 2015
    The EU General Court ruled on actions by Evonik and Akzo regarding the planned publication of allegedly confidential information in the public version of the Commission's hydrogen peroxide cartel decision of May 2006. The GC entirely dismissed both actions. The GC held in particular that the publication of information on the cartel conduct would not amount to disclosing to third parties material provided by Evonik and Akzo in support of their leniency applications. This is the first time that the GC has given guidance on the balance between publishing meaningful public versions of cartel decisions and protecting legitimate business interests.
    Read full Evonik judgment >
    Read full Akzo judgment >
    Read more about Commission's 2006 decision >

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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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