Brussels Brief - January 30, 2009
January 30, 2009
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KEY DEVELOPMENTS
Competition: Market Sharing and Price-Fixing Cartel in Marine Sector
Laura Zadunayski
On 28 January 2009, five companies—Bridgestone, Dunlop Oil & Marine/Continental, Trelleborg, Parker ITR and Manuli—were fined EUR 131 million by the European Commission for participating in a cartel for marine hoses between 1986 and 2007 in violation of Article 81 EC and Article 53 of the EEA Agreement.
A sixth member of the cartel,
The Commission concluded that the producers of marine hoses operated a worldwide cartel. The cartel members allegedly fixed prices for marine hoses, allocated bids and markets and exchanged commercially sensitive information. Cartel members are alleged to have referred to some markets as their "private markets" and agreed upon several pages of detailed rules to limit their conduct on the market.
In setting the fines, the Commission took into account the respective affected sales of the companies involved as well as the combined market share and the geographical scope of the cartel agreements. Consequently,
Taxation: Rules on Tax Deductibility of Gifts to Charitable Bodies
Jacques Pieters
The tax legislation of many EU Member States provides for some type of tax deductibility for donations to charitable bodies. Often this deductibility is limited to a maximum amount and subject to strict procedures and formalities, yet must still respect free movement of capital or even the free movement of goods (in the case of donations in kind).
On
The ECJ decided that national legislators were indeed entitled to refuse the tax deductibility of gifts to charitable bodies established in other Member States if the former pursued objectives other than those advocated by the legislation of the Member State that would have to grant the deduction.
Furthermore, the ECJ did not see a threat to the effectiveness of a
This case shows that EU Member States cannot restrict the tax deductibility of gifts only to charitable bodies located in their national territories if the “foreign” organisation advocates goals for which it would have received charitable status under that Member State's national tax law and the reality of the donation can be proven.
Telecommunications – Competition: Commission Dawn Raids Slovak Telekom
Vasilios Bousis
The European Commission has conducted surprise investigations at the premises of Slovak Telekom, the leading telecommunications operator in
This investigation is taking place against an interesting background because in the early 2000s, the Slovak Competition Authority had already found that Slovak Telekom’s behaviour distorted competition in the market for electronic communication services. An initial fine was imposed in 2005 but was overturned by the Slovak courts. A second fine of EUR 29 million was imposed in 2008, which Slovak Telekom reportedly intends to appeal.
Energy: Commission Proposes EUR 5 Billion Investment in Strategic Infrastructure Projects
Leigh Smith
On
EUR 3.5 billion of this investment will be allocated to the energy sector, with the remaining EUR 1.5 billion to be invested in
The proposal will now be submitted to Member States for approval. It is expected that the proposal will be discussed at the next General Affairs Council, due to take place on 23 and
NEXT WEEK’S EVENTS
Monday 2 February –
COUNCIL MEETINGS
No Council meetings scheduled for next week.
COURT OF JUSTICE
Judgments
Area of Freedom, Security and Justice
C-293/08 Commission v
Environment and consumers
C-282/08 Commission v
Opinions
Agriculture
C-428/07 Horvath
C-478/07 Budejovicky Budvar
Competition
C-440/07 P Commission v Schneider Electric
Intellectual property
C-498/07 P Aceites del Sur-Coosur v Koipe and Office for Harmonisation in the Internal Market
State aid
C-369/07 Commission v
COURT OF FIRST INSTANCE
Judgments
Competition
T-145/06 Omya v Commission
