Portuguese Competition Authority blocks Vodafone's acquisition of MasMovil subsidiary
In the country's first merger prohibition in four years, the Portuguese Competition Authority blocked the EUR 150 million acquisition of MasMovil's subsidiary Nowo, despite Vodafone's proposed remedies, arguing the merger would reduce competition in the Portuguese telecommunications market and lead to higher prices for consumers. Moreover, the increase in Vodafone's market power, combined with similar offers from other major players, would create an oligopoly limiting consumer choice.
New rules expected in Australia
- Draft sustainability guidelines published
- The Australian Competition and Consumer Commission (ACCC) has issued guidelines allowing companies to collaborate on environmentally friendly projects such as joint research and setting emissions targets. Any such collaboration must demonstrate clear environmental benefits outweighing potential harm to competition, and businesses will need to provide substantial evidence to justify their actions.
- Draft merger rules released
- Australia is also revamping its merger rules. The new system will require mandatory notification and impose a suspensory period before deals can be completed (replacing the current voluntary approach). This shift aims to bolster competition, safeguard consumers, and create a more predictable business environment. The government has opened a consultation period allowing feedback on the draft legislation until August 13th with the new rules expected to take effect in 2026.
Potential EUR 400 million EC fine for Delivery Hero
A recently published investor notice revealed that Delivery Hero faces a potential EUR 400 million fine from the European Commission for anti-competitive practices. Delivery Hero and Glovo, the latter which Delivery Hero obtained sole control over in 2022, are the two largest food delivery companies in Europe. Both have been under investigation for collusion, including market sharing, information exchange and no-poach agreements, which allegedly started prior to the takeover.
Appeal against TikTok's gatekeeper designation rejected
TikTok owner ByteDance lost its appeal against the European Commission's decision to designate TikTok as a gatekeeper under the Digital Markets Act. The General Court upheld the Commission's decision which sets a high bar is set for tech companies to challenge gatekeeper designation.
Companies must provide strong evidence to refute the presumption that meeting quantitative thresholds (including user numbers and revenue) also implies meeting qualitative criteria for gatekeeper status. The court underlined that simply raising doubts regarding a company's gatekeeper status will not suffice: companies must demonstrate, with a high degree of plausibility, why they should not be designated as such despite meeting thresholds.
ECJ regards information exchange as by-object restriction in Portuguese banks' appeal
Twelve of the largest banks operating in Portugal, including Barclays, Santander, Caixa Geral de Depósitos and Banco Português de Investimento, have appealed a EUR 225 million fine imposed by The Portuguese Competition Authority. Fourteen banks were fined in total with only Banif Financial Group and Deutsche Bank deciding not to appeal.
Although the banks argued that said information exchange did not necessarily harm competition, the European Court of Justice's preliminary ruling states that the sharing of sensitive information between competing banks in a concentrated market could be seen as a by-object restriction. It therefore ruled that the authority is not required to assess the effects of such an exchange to determine a violation.
KFTC fines South Korean companies for bid-rigging
South Korea's antitrust regulator, the Korea Fair Trade Commission, fined eight companies and an industry association for bid-rigging. The subjects allegedly colluded on tenders for corrugated optic duct pipes used by the Korea Expressway Corporation to ensure predetermined winners and maintain high prices.
Meta faces multimillion-euro fine for tying Marketplace to Facebook
Meta is bracing itself for a hefty fine from the European Commission arising from alleged abuse of dominant position by tying Marketplace, its classified ads service, to Facebook granting it an unfair distribution advantage. The Commission is expected to finalize its decision in the coming months following a December 2022 statement of objections accusing Meta of anticompetitive behavior.
This case underscores the EU's ongoing scrutiny of Big Tech market practices.
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