In this issue:

  • Competition: Commission fines wax producers EUR 676 million for price fixing and market sharing cartel
  • Competition: Commission publishes document setting out provisions on international relations in competition policy
  • Competition: Commission requests Slovakia to re-open competition in the hybrid mail sector
  • Competition (Sweden): Nordic competition authorities present joint report on the pharmaceutical market
  • Merger control: Commission clears proposed acquisition of parts of ABN AMRO's assets by Deutsche Bank
  • Merger control: Commission approves modified Alpha Card joint venture between American Express and Fortis
  • Merger Control (Sweden): Swedish Competition Authority issues transitional provisions on merger control

Competition: Commission fines wax producers EUR 676 million for price fixing and market sharing cartel

The Commission has imposed a total fine of EUR 676 million on 9 groups – ENI, ExxonMobil, Hansen & Rosenthal, Tudapetrol, MOL, Repsol, Sasol, RWE and Total – for participating in a paraffin wax cartel in the EEA between 1992 and 2005 in violation of Article 81 of the EC Treaty. Paraffin waxes are used in a wide range of products such as candles, waxed paper, tires and car components as well as in the rubber and packaging industries. The Commission found that the companies had fixed prices of the relevant products and, in addition, ExxonMobil, MOL, Repsol, Sasol, Shell and Total had allocated markets and customers for paraffin waxes. According to the Commission, the companies had held regular meetings in which they discussed prices, allocated markets and customers and exchanged sensitive commercial information. Sasol's fine was increased by 50 % as it was the leader of the cartel. Further, the fines for ENI and Shell were increased by 60 % as both companies had been fined for cartel activities in previous Commission decisions. Shell, however, received full immunity from fines under the Commission's Leniency Notice, as it was the first to provide information on the cartel. Also Sasol, Repsol and ExxonMobil received a reduction of fines of 50 %, 25 % and 7 % respectively for cooperating with the Commission's investigation. Source: Commission Press Release 1/10/2008

Competition: Commission publishes document setting out provisions on international relations in competition policy

The Commission has published a document comprising the full text of all provisions on international relations in the area of competition policy included in agreements between the EU and third countries or third country groupings. It contains, inter alia, the relevant provisions from the EEA Agreement, the bilateral agreements with candidate member countries, the competition co-operation agreements with e.g. the US and texts of numerous other bilateral agreements and competition related measures. Source: DG Competition website (http://ec.europa.eu/comm/competition/international/legislation/legislation.html) 2/10/2008

Competition: Commission requests Slovakia to re-open competition in the hybrid mail sector

The Commission has found that recent amendments to Slovak postal legislation, extending the monopoly of the incumbent operator Slovenská Poata to the delivery of hybrid mail services, infringe Article 82 EC in conjunction with Article 86 EC. Hybrid mail is mail which is transferred electronically from the sender to the postal operator who prints out the postal item and delivers it in paper form. The hybrid mail sector had been open to competition until the amendment and, consequently, private postal operators that were already established in the market are prevented from exercising their activity in the relevant sector and their economic viability is thus endangered. The Commission concluded that the amendments to the Slovak postal legislation must be revoked. Slovakia now has one month to undertake the necessary measures to ascertain that hybrid mail services remain open to competition. Source: Commission Press Release 7/10/2008

Competition (Sweden): Nordic competition authorities present joint report on the pharmaceutical market

The Nordic competition authorities have presented a joint report on the pharmaceutical market situation. In the report, the competition authorities of Sweden, Denmark, Finland, Iceland and Norway present their experiences on various reforms that have taken place in the pharmaceutical market in their respective countries in recent years. In particular, the report describes the competitive outcome of various provisions concerning e.g. market access and pricing. As the pharmaceutical market in Sweden is expected to undergo major changes in 2009 due to the plan to abolish the Swedish state monopoly in the pharmaceutical retail market, the report provides valuable guidelines for the assessment of the proposed reforms in Sweden. Source: The Swedish Competition Authority (www.kkv.se)07/10/2008

Merger control: Commission clears proposed acquisition of parts of ABN AMRO's assets by Deutsche Bank

The Commission has cleared the acquisition of certain assets of ABN AMRO, of the Netherlands, by Deutsche Bank, of Germany. Deutsche Bank is active in investment and banking services worldwide. ABN AMRO is a globally active international banking group. The ABN AMRO assets to be acquired by Deutsche Bank include the Hollandsche Bank Unie N.V., two of ABN AMRO's corporate client departments and thirteen of its commercial advisory centres as well as its Dutch factoring subsidiary IFN. The Commission concluded that the proposed acquisition will not create or strengthen such a dominant market position that would significantly impede effective competition in the EEA or in any substantial part thereof. Source: Commission Press Release 1/10/2008

Merger control: Commission approves modified Alpha Card joint venture between American Express and Fortis

The Commission has cleared the proposed transformation of the existing joint venture Alpha Card S.C.R.L./C.V.B.A ("Alpha Card") into a full-function joint venture between American Express Company ("American Express"), of the US, and Fortis Bank S.A. / N.V. ("Fortis"), of Belgium. Fortis is an international provider of banking and insurance services to personal, business and institutional customers. American Express is active globally in the markets for payment card issuing, merchant acquiring and travel and insurance services. Most of American Express's payment card issuing and merchant acquiring businesses in Belgium and Luxembourg have been transferred to the Alpha Card joint venture. The Commission concluded that the proposed acquisition will not create or strengthen such a dominant market position that would significantly impede effective competition in the EEA or in any substantial part thereof. Source: Commission Press Release 3/10/2008

Merger Control (Sweden): Swedish Competition Authority issues transitional provisions on merger control

The Swedish Competition Authority ("SCA") will publish shortly new merger control guidelines on account of the entry into force of the new Swedish Competition Act on 1 November 2008. The guidelines will include transitional provisions concerning the applicability of the old and new merger control rules. The SCA states that the old rules will continue to apply to concentrations that arise prior to 1 November 2008 and the new rules will apply to concentrations arising as of that date. In order to clarify which rules are applied, the SCA notes that a concentration shall be considered to have arisen on the date of (i) signing of the legally binding agreement, (ii) announcement of the public big or (iii) receipt by the SCA of a complete merger notification that indicates the parties' intention to implement the concentration. Source: The Swedish Competition Authority (www.kkv.se)30/09/2008

In addition, kindly note the following merger control decisions by the Commission which are published on the website of the Commission's Directorate-General for Competition:

  • Commission clears proposed acquisition of Piaggio by Tata, Mubadala and Lochmore
  • Commission clears proposed acquisition of CERP Lorraine Répartition France by Phoenix
  • Commission clears proposed acquisition of OTE by Deutsche Telekom
  • Commission clears proposed acquisition of Hercules by Ashland

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.