Competition weekly news summary
11 July 2014


Antitrust

  • Commission fines Servier and five generic companies for curbing entry of cheaper versions of cardiovascular medicine
    9 July 2014
    The Commission has imposed fines totalling €427.7 million on the French pharmaceutical company Servier and five producers of generic medicines for concluding a series of deals all aimed at protecting Servier's bestselling blood pressure medicine, perindopril, from price competition by generics in the EU. Through a technology acquisition and a series of patent settlements with generic rivals, Servier implemented a strategy to exclude competitors and delay the entry of cheaper generic medicines to the detriment of public budgets and patients in breach of EU antitrust rules.
    VP Almunia's statement >
    Press release >
  • Commission closes investigation into generic pharmaceutical companies in France
    9 July 2014
    The Commission has closed its antitrust investigation into generic pharmaceutical companies in France. The investigation focused on suspected coordination between generic pharmaceutical companies when negotiating an initial price with the French pricing authority before launching a new generic product. In its sector inquiry report on the distribution of medicinal products in France of December 2013, the French competition authority referred to the possibility that the current French regulatory framework would allow for such pricing coordination between generic competitors. It also suggested that the French pricing authority and the French competition authority would closely work together in case such anomalies were detected.
    Read more >
  • Commission calls for strengthening position of national competition authorities to ensure effective enforcement of competition rules throughout the EU
    9 July 2014
    The Commission has adopted a Communication identifying areas for action to enhance the enforcement of EU antitrust rules by national competition authorities (NCAs). Since 2004, both the Commission and NCAs have the power to fully enforce the EU’s antitrust rules. Based on ten years of experience, the Commission aims to further strengthen the position and tools of the NCAs. The Communication adopted today sets out priority areas where further progress is necessary. The Commission will then assess which policy initiatives should be taken to best achieve these goals.
    Read more >

Mergers

  • Commission consults on possible improvements of EU merger control rules
    9 July 2014
    The Commission has launched a public consultation on proposals to improve merger control at EU level outlined in a White Paper. The reform of the Merger Regulation in 2004 has made the EU’s merger control regime more efficient and predictable, preserving effective competition in the Single Market for the benefit of businesses and consumers. Nevertheless, the experience of the last ten years has also shown that there is scope for further improving some aspects of EU merger control. In its White Paper "Towards More Effective EU Merger Control" the Commission makes proposals that would allow it to better deal with non-controlling minority shareholdings which may affect competition, and that would make referral procedures simpler and faster.
    Press release >
    Frequently asked questions >

State aid

  • Commission adopts revised guidelines for supporting firms in difficulty
    9 July 2014
    In the context of its State Aid Modernisation initiative, the Commission has revised its rules for assessing Member States' support measures to rescue and restructure companies in difficulty. The new guidelines aim to ensure that public funding is channelled where it is needed most and that investors in failing firms carry their fair share of the costs of restructuring, rather than leaving the burden to taxpayers. The rules adopted apply only to non-financial firms in difficulty; a separate set of rules is in place for banks and other financial institutions. The new guidelines will enter into force on 1 August 2014.
    Press release >
    Policy Brief >
    Frequently asked questions >
  • Commission questions tax exemptions for Dutch public companies and takes steps to ensure fair competition between EU ports
    9 July 2014
    The Commission has opened an in-depth investigation to verify whether exemptions from corporate tax granted under Dutch law to public companies, including port operators, are in line with EU state aid rules. The Commission has concerns that exempting certain companies merely because they are publicly owned may give them an advantage over their competitors. Separately, the Commission is also gathering information on taxation of ports in other Member States. The Commission has informed France and Belgium of its concerns regarding the taxation of ports in these countries and has asked Germany to provide further information to ensure that there are no undue competitive advantages being granted to ports.
    Read more >
  • Commission opens in-depth investigation into Milan airport ground-handling services
    9 July 2014
    The Commission has opened an in-depth investigation to examine whether a €25 million capital injection by SEA SpA, the publicly owned manager of the Italian airport Milan, in favour of its new ground-handling subsidiary Airport Handling was in line with EU state aid rules.
    Read more >
  • Commission concludes that Scandinavian Airlines (SAS) did not receive state aid
    9 July 2014
    The Commission has concluded that a revolving credit facility that Denmark, Sweden and Norway granted to SAS in December 2012 was carried out on market terms and therefore did not constitute state aid within the meaning of EU rules.
    Press release >
    Policy brief state aid for airline restructuring >
  • Commission approves public support measures in favour of Latvian banks Reverta (formerly Parex banka) and Citadele
    9 July 2014
    The Commission has found the support measures granted by Latvia to AS Reverta (formerly AS Parex banka) and AS Citadele banka to be in line with EU state aid rules. Based on the additional information provided by Latvia, the Commission concluded, in particular, that the measures were necessary to preserve the stability of the Latvian banking system and for an orderly resolution of Reverta.
    Read more >
  • Commission adopts four decisions on regional investment aid for car manufacturers Porsche, BMW, AUDI and Ford
    9 July 2014
    The Commission has adopted decisions on the compatibility with EU state aid rules of four distinct projects by Germany, Hungary and Spain to grant regional aid in favour of the car manufacturers Volkswagen, BMW and Ford, in order to attract major investment projects. The Commission has authorised a German aid measure worth €43.67 million to Volkswagen/Porsche in Leipzig because it furthers regional development without unduly distorting competition in the Single Market, in line with EU guidelines. For BMW, also based in Leipzig, the Commission has found that only part of the planned aid was necessary to carry out the project and has therefore authorised €17 million out of the €45 million planned by Germany. The Commission has opened an in-depth investigation to assess the compatibility of aid by Hungary to Volkswagen/AUDI in Gyor, because it has concerns that, in view of the strong market position of the beneficiary and the difficult market situation, the aid could harm competition. Finally, the Commission has closed a formal investigation into regional aid for Ford in Spain, after Spain reduced the aid from €24.4 million to €11.2 million, a level which does not require Commission approval.
    Press release >
    Policy Brief state aid in the automotive sector >
  • Commission approves restructuring aid for Greek bank Alpha Bank
    9 July 2014
    The Commission has found the restructuring plan of the Greek Alpha Bank, including the acquisition and integration of Emporiki Bank, to be in line with EU state aid rules. The measures already implemented and those envisaged in the future will enable the bank to return to viability, while limiting the distortions of competition brought about by the state funding.
    Read more >
  • Commission approves exemptions from Danish tax on advertising to households
    9 July 2014
    The Commission has found a series of reductions and exemptions from a Danish tax on non-nominative advertising material delivered to households, to be in line with EU state aid rules. The Commission found that while some of these measures contain state aid, it is compatible with EU rules as it furthers EU environmental and cultural goals without unduly distorting competition in the Single Market.
    Read more >
  • Commission approves restructuring aid for Latvian airline airBaltic
    9 July 2014
    The Commission has concluded that a number of measures granted by Latvia in the context of the restructuring of the airline airBaltic in 2011 and 2012 were in line with EU state aid rules. The Commission found, in particular, that airBaltic's restructuring plan will allow the company to become viable in the long term without unduly distorting competition in the Single Market.
    Press release >
    Policy Brief state aid for airline restructuring >
  • Commission approves restructuring aid for Slovenian airline Adria Airways
    The Commission has concluded that restructuring measures taken by Slovenia in favour of the national airline Adria Airways were in line with EU state aid rules. The Commission found in particular that the company's restructuring plan will enable it to become viable in the long term without unduly distorting competition in the Single Market. Moreover, two capital injections in 2007 and 2009 and the sale of an Adria Airways subsidiary in 2010 were carried out on market terms and therefore did not involve any state aid.
    Press release >
    Policy Brief state aid for airline restructuring >

Competition

  • Commission calls for proposals 2014 for training of national judges OPEN
    2 June 2014
    The Commission has published the 2014 call for proposals for training national judges in competition matters. The purpose is to co-finance projects aimed at promoting training and judicial cooperation on the enforcement of EU competition rules for national judges. This includes public and private enforcement of antitrust and state aid rules. The aim is to ensure a consistent application of EU competition rules. The deadline for applications is 29 August 2014.
    Go to call for proposals >

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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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