Brussels Brief - September 8, 2006
September 8, 2006
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KEY DEVELOPMENTS
Telecoms: Deutsche Telekom Ordered to Open Access to Competitors
Andrea Hamilton
The European Commission has endorsed a proposal by German telecommunications regulator Bundesnetzagentur (BNetzA) that would force Deutsche Telekom AG to open up its broadband networks to competitors. The proposed remedy followed BNetzA’s conclusion in 2005 that Deutsche Telekom held a dominant position in the German wholesale broadband market. Under the terms of the proposed remedy, new market entrants may purchase a high-speed link to gain access to end-customers via Deutsche Telekom’s broadband networks at prices approved by BNetzA. The access requirement applies to all Deutsche Telekom infrastructure, including the ultra high-speed VDSL infrastructure currently under development. In its letter endorsing the proposed measure, the Commission has urged BNetzA to implement the remedy promptly, so that consumers may benefit from increased competition in the German broadband market.
Trade: Certifications Required for US Rice Imports
Michal Cieplinski
The European Commission has adopted a decision requiring imports of long grain rice from the US to be certified as free from the unauthorised GMO LL Rice 601. The decision has been taken in light of the recent announcement by the US Food and Drug Administration that this unauthorised GMO had been found in samples of commercial rice which is usually GMO-free. This extraordinary measure will last for six months and will mean that only consignments of US long grain rice that have been tested by an accredited laboratory using a validated testing method assuring the absence of LL Rice 601 will be allowed to enter the EU. Under EU food safety legislation, only GMOs which have undergone a thorough scientific assessment and authorisation procedure may be put on the EU market.
Mergers: In-Depth Probe into Metso/Aker Kvaerner Deal
Philip Torbøl
The European Commission has decided to open an in-depth investigation of the proposed acquisition of Norwegian Aker Kvaerner ASA by Finnish Metso Corporation Oy. The merged entity would bring two of the three producers of pulp mill equipment in Europe together which would effectively only then face competition from the market leader, Austrian Andritz. The Commission will in particular analyse the market for certain production equipment as well as different stages of pulp production such as brown stock washing, oxygen delignification and bleaching. The Commission has until 20 December 2006 to take a decision on whether to allow the concentration.
Mergers: Commission Adopts Statement of Objections in Suez-Gaz de France Case
Yannis Virvilis
The European Commission adopted in August a Statement of Objections in the proposed merger between French companies Gaz de France and Suez. Gaz de France is the incumbent gas operator in France and is also active in other EU Member States, including Belgium. Suez is active in the gas and electricity sectors and focuses its activities mainly in Belgium. The Statement of Objections is a normal stage in a Phase II merger proceeding, whereby the Commission communicates to the parties its provisional concerns on a certain transaction. In the present Statement of Objections, the Commission identifies competition concerns in the gas and electricity markets in Belgium, the gas market in France and the market for district heating in France.
Mergers: Commission Opens In-Depth Investigation into Thule’s Takeover of Schneeketten
Maria Scimemi
The European Commission has opened a Phase II investigation into the planned acquisition by the Swedish company Thule of the Austrian company Schneeketten/Pewag. Thule is active in the manufacture and sale of load carrying systems and trailers for passenger cars and of traction equipment for passenger cars and heavy vehicles. Schneeketten is active in the manufacture and sale of traction equipment for passenger cars and heavy vehicles. As both companies are active across Europe in the production and sale of snow chains for passenger cars and heavy vehicles, the merger would bring together two of the largest European snow chain producers, thereby leading to significant overlaps.
Mergers: Commission’s Preliminary Assessment of Measures Imposed by Spain on E.ON
Patrice Corbiau
The European Commission has communicated to Spain a preliminary assessment of the measures imposed on E.ON in the decision of the Spanish Energy regulator, CNE, of 27 July 2006 regarding E.ON’s bid for Endesa. In this preliminary assessment, the Commission has considered that most of the conditions imposed on E.ON by CNE raise serious doubts as to their compatibility with European law, in particular the EU Treaty and Merger Regulation. The Commission considers that these conditions are not justified on public security grounds and that they are neither necessary nor proportionate for the protection of public security. The Spanish authorities were invited to express their views no later than 4 September 2006. Should the Commission’s preliminary assessment be confirmed, the Commission could adopt a decision declaring that Spain has infringed the Merger Regulation and requiring the withdrawal of the conditions imposed by CNE.
Internal Market: Commission to Launch Consultation on Framework for Health Services
Yannis Virvilis
The European Commission has decided to launch a public consultation on cross-border health services. The Commission has done this because health services are excluded from the proposed Directive on services (the so-called “Bolkenstein Directive”), the adoption of which is pending. The Commission has decided to pursue this issue, following a number of judgments of the European Court of Justice regarding the direct application of EU Treaty provisions on free movement to the reimbursement of health services provided abroad. The Commission’s aim is to ensure legal certainty in the provision of cross-border health services across the Community, as well as to support cooperation between national health systems. The public consultation will be followed by a concrete legislative proposal by the Commission in 2007.
NEXT WEEK’S EVENTS
Monday 11 September – Friday 15 September 2006
COUNCIL MEETINGS
General Affairs and External Relations Council (GAERC) (14 – 15 September 2006)
COURT OF JUSTICE
Judgments
Agriculture
C-496/04 Slob
C-138/05 Stichting Zuid-Hollandse Milieufederatie
Approximation of laws
C-479/04 Laserdisken
Citizenship of the Union
C-300/04 Eman and Sevinger
EAEC
Joined Cases C-123/04, C-124/04 Industrias Nucleares do Brasil and Siemens
Environment and consumers
C-244/05 Bund Naturschutz in Bayern and Others
Freedom of establishment
C-196/04 Cadbury Schweppes and Cadbury Schweppes Overseas
C-386/04 Centro di Musicologia Walter Stauffer
Free movement of goods
Joined Cases C-158/04, C-159/04 Alfa Vita Vassilopoulos
C-82/05 Commission v Greece
Law governing the institutions
C-131/03 P Reynolds Tobacco and Others v Commission
C-145/04 Spain v United Kingdom
Taxation
C-72/05 Wollny
Joined Cases C-181/04, C-182/04, C-183/04 Elmeka
C-228/05 Stradasfalti
Opinions
Approximation of laws
C-321/03 Dyson
Company law
C-507/03 Commission v Ireland
Competition
Joined Cases C-403/04 P, C-405/04 P Sumitomo Metal Industries v Commission
C-407/04 P Dalmine v Commission
C-411/04 P Salzgitter Mannesmann (anciennement Mannesmannröhren-Werke) v Commission
ECSC
C-119/05 Lucchini Siderurgica
Environment and consumers
C-235/04 Commission v Spain
External relations
C-16/05 Tum & Dari
Environment and consumers
C-315/05 Lidl Italia
C-334/04 Commission v Greece
C-418/04 Commission v Ireland
Freedom of establishment
C-231/05 Oy AA
Freedom to provide services
C-532/03 Commission v Ireland
Police and judicial cooperation in criminal matters
C-303/05 Advocaten voor de Wereld
Principles of Community law
C-40/05 Lyyski
Regional policy
C-289/05 Länsstyrelsen i Norrbottens län
Social policy
C-385/05 Confédération générale du travail and Others
Taxation
C-277/05 Société thermale d'Eugénie-Les-Bains
C-156/04 Commission v Greece
C-111/05 Aktiebolaget NN
Transport
C-251/04 Commission v Greece
COURT OF FIRST INSTANCE
Judgments
Agriculture
Joined Cases T-217/99, T-321/00, T-222/01 Sinaga v Commission
Intellectual property
T-191/04 MIP Metro v OHMI - Tesco Stores (METRO)
External relations
T-226/01 CAS Succhi di Frutta v Commission
State aid
T-210/02 British Agg
