Brussels Brief - October 5, 2007
October 5, 2007
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KEY DEVELOPMENTS
Competition: Commission Fines Members of Bitumen Cartel EUR 183 Million
Juan Gutiérrez
The European Commission has imposed fines totalling EUR 183 on BP, Repsol, Cepsa, Nynäs and Galp for participating in a bitumen cartel in
Mergers: Commission Clears Sony-BMG … Again
Yannis Virvilis
For the second time, the European Commission has cleared the creation of Sony BMG, a joint venture combining the recorded music businesses of Sony and Bertelsmann. The Commission had already cleared the transaction in 2004, but following an appeal by a third party, the Court of First Instance (CFI) annulled the Commission decision. This was the first time that the CFI had annulled a merger clearance decision. In light of the annulment, the Commission re-evaluated the transaction under the old Merger Regulation. In doing so, new market conditions were assessed, including the developments in the sales of online music. The outcome of the Commission’s investigation was that even if the transaction took place in a concentrated market, no collective dominance scenario would arise because the necessary conditions for collective dominance were not met.
Competition: Visa Fined EUR 10 Million for Refusing Membership to Morgan Stanley
Philip Torbøl
The European Commission has imposed a EUR 10 million fine on Visa for refusing to admit Morgan Stanley as a member. Consequently, Morgan Stanley was prevented from providing merchants with Visa card acceptance capabilities in the
Competition: EU Agrees to Open Competition in the Postal Sector by 2011
Andrea Hamilton
Ending a year long stand off, EU Member States have agreed to liberalise the postal sector—valued at EUR 88 billion—by 2011, two years after the European Commission’s initial target year. Eleven Member States were granted two additional years to prepare for cross-border competition. Among other things, the agreement opens to competition all aspects of the postal sector including the delivery of letters of less than 50 grammes, which were typically shielded from competition. Member States, however, may dictate terms to providers of postal services, including: (i) uniform tariffs between rural and urban areas; (ii) sufficient access to post offices; and (iii) minimum delivery requirements. While consumer groups have voiced approval, postal workers in certain Member States have vowed to strike. The agreement still needs approval from the European Parliament, which is expected to be given in the first quarter of 2008.
Internal Market: New Move to Create Internal Market for Health Care Services
Kate DaSilva
The European Commission is drafting a directive to ensure the protection of patients’ basic rights when travelling to other EU Member States to receive medical treatment. The key proposals are: (i) patients should receive health care that meets the standards they would have been entitled to in their home country; (ii) patients' home countries should carry the cost for health care abroad, at least up to the price they would have been charged had the patient been treated at home; (iii) patients must obtain authorisation prior to looking for medical treatment abroad, but patients cannot be denied treatment if it is deemed "appropriate"; and (iv) Member States should provide all the relevant information "to enable informed choices by patients". The directive could be adopted by the Commission before the end of 2007, after which it will go to Parliament and the Council for approval.
Agriculture: Commission Claiming Back EUR 145 Million CAP Money
Alana Tart
The European Commission has announced that it will recover EUR 145 million of EU farm money unduly spent by Member States because of inadequate control procedures or non-compliance with EU rules on agricultural expenditure. Under EU rules, Member States are responsible for paying out and checking expenditure under the Common Agricultural Policy (CAP) and the Commission is required to ensure that Member States have made correct use of the funds. This is the 25th time since 1995 that the Commission has decided to claim back spent CAP funds. Money will be recovered from
Justice and Home Affairs: European Centre to Tackle Cocaine Smuggling
Benoît Keane
Seven EU Member States have opened a new centre to deal with transatlantic cocaine smuggling. France, Ireland, Italy, the Netherlands, Portugal, Spain and the United Kingdom will together operate the Maritime Analysis and Operations Centre—Narcotics. The Centre will use warships and narcotics officers from each of these seven EU Member States to intercept shipments before they reach EU soil. The Centre will be based in Lisbon and staffed by professional law enforcement personnel from the participating EU Member States.
State Aid: Commission Clears Aid in Polish Electricity Market
Bróna Heenan
Following an investigation, the European Commission has requested that Poland terminates long term electricity purchase agreements that, in its view, constitute unlawful State aid. Around half the electricity generated in
NEXT WEEK’S EVENTS
Monday 8 October –
COUNCIL MEETINGS
ECOFIN Council / Eurogroup (
COURT OF JUSTICE
Judgments
Agriculture
C-332/06 P Greece v Commission
Common foreign and security policy
C-117/06 Möllendorf and Others
Company law
C-237/05 Commission v
C-241/06 Lämmerzahl
Convention on jurisdiction
C-98/06
Free movement of capital
C-451/05 Elisa
Principles of Community law
C-443/06 Hollmann
Social policy
C-460/06 Paquay
Taxation
Joined Cases C-283/06, C-312/06 KÖGÁZ and Others
Opinions
Freedom to provide services
C-281/06 Jundt
Law governing the institutions
C-70/06 Commission v
COURT OF FIRST INSTANCE
Judgments
Competition
T-474/04 Pergan Hilfsstoffe für industrielle Prozesse v Commission
Intellectual property
T-460/05 Bang & Olufsen v OHMI
