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Spain

Aviation

A new amendment to the Law on Air Navigation expressly recognises the rights of owners of premises in the vicinity of such airports to be indemnified for any damages arising from aircraft noise. It obliges the state to guarantee that noise quality standards are respected and to implement any necessary action plans whenever a noise easement is approved that allows an increase in those standards.

A new royal decree governs the grant, renewal, amendment and revocation by the Spanish aviation safety agency of licences granted to air navigation services providers. Meanwhile, the Autonomous Community of Madrid has been given exclusive control over airports and heliports suitable for practising aerial sports and those where commercial activities do not take place.

The provisions of Royal Decree 1919/2009 on security in civil air shows apply to all civil air shows that offer an exhibition or performance during a public event, no matter whether the show is open to the general public or has restricted access, as well as to flights that are not included in the official programme, but which are conducted to promote the show.

In a recent case the plaintiffs purchased two flight tickets to travel from Barcelona to Mexico City via London. The flight to London took off late and the plaintiffs missed their connecting flight to Mexico City. The first instance court partially accepted the plaintiffs' claim that the airline had breached its obligations and the Barcelona Provincial Court confirmed the amount of compensation determined at first instance.

Aeronautical inspection regulations have recently been passed to implement Law 21/2003. These regulations have developed the concept of safety within the law, which no longer refers to extraordinary security controls, but rather implements audit structures to assess the suitability of the safety systems and procedures continuously. The regulations provide a framework for aeronautical inspection activities.

Royal Decree 714/2009 recently entered into force, transposing into law an EU directive regarding the criteria for the conduct of ramp inspections at EU airports. The decree applies to third-country aircraft landing at airports in Spain that are open to international air traffic.

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Competition

The council of the National Competition Commission recently dismissed a complaint by telecommunications company Jazztel regarding an alleged abuse by the incumbent Telefonica of its dominant position in the wholesale market for internet broadband access. The decision departed from those previously taken by the commission's Enquiry Division and the telecommunications regulatory authority.

The council of the National Competition Commission recently imposed an overall fine of €24 million on four regional savings banks from the Basque Country and Navarre for an infringement of Article 1 of the Competition Act. The council refused to consider each practice as a different infringement, but instead decided to regard the activities as a single complex cartel.

The Tribunal for the Defence of Competition issued several decisions on individual exemptions just before the new Law for the Defence of Competition entered into force on September 1 2007. The decisions show significant differences concerning the duration of the exemptions.

Parliament has recently passed a new Competition Act, which will enter into force on September 1 2007. The act introduces a number of significant reforms, bringing the Spanish competition system into line with EU rules. Among other things, the act establishes a new independent body, the National Competition Commission, which will replace the Service for the Defence of Competition and the Court for the Defence of Competition.

The Court for the Defence of Competition has rejected applications submitted by two card payment system associations to obtain individual exemptions for their respective agreements on intra-system interchange fees. The court found that the interchange fee schemes were neither objective nor transparent, and that certain elements of the schemes were discriminatory.

The minister of economy has presented a white paper on the reform of Spanish competition law. The initiative aims to start a public debate on various proposals which, if adopted, would lead to the largest reform of Spanish competition law since the Competition Act entered into force in 1989. The main objective is to overcome deficiencies in the current institutional and procedural framework.

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Shipping & Transport

In a recent ruling on both-to-blame collisions, the Supreme Court clarified that for the purposes of collision liability, the concept of a ship comprises not only craft with an ability to navigate, but also floating devices capable of being moved. It further confirmed that the concept of collision extends to cases where there has been no direct physical contact between the ships.

The Law on Contracts for the Land Transport of Goods is designed to modernize the legal framework governing contracts for land transport by road and rail. It will also apply to river transport and, subsidiarily, transport by post. The new law also introduces carriers' liability. The liability framework is based on the presumption of carrier's liability where an event giving rise to liability occurs.

The Supreme Court has clarified the law on the supplementary application of general insurance default interests to marine insurance contracts. Should parties fail to provide for a regulation on the interests applicable to indemnity in case of late payment by the insurer and unless the parties have expressly excluded the application of the Law on Insurance Contracts, the loophole will be filled by Article 20 of the law.

This update looks at the power granted to insolvency judges regarding the termination of a shipbuilding contract when, at the time the insolvency proceedings are initiated, obligations of both parties are still pending (ie, the shipyard for construction of the vessel and the shipowner for the payment of instalments).

The provisions of the 1952 Brussels Convention on the Arrest of Seagoing Ships were ratified by Spain in 1953. They apply to vessels flying any flag pursuant to Articles 1, 2 and 3 of the Law on the Precautionary Arrest of Foreign Seagoing Vessels. The Spanish rules regarding interim and precautionary measures such as arrest are governed by Articles 721 to 747 of the Civil Procedure Act.

The Supreme Court has recently considered the requirement for timely notice to the carrier of loss or damage to cargo carried between two non-international ports, confirming the informal interpretation of the carrier pursuant to the second paragraph of Section 952(2) of the Commercial Code.

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Telecommunications

Including: Operator Selection; Access to the Local Loop; Internet Access; Interconnection; Limitations on Simultaneous Shareholding; Spectrum Fees

A government resolution has been published setting out the terms for awarding licences including details of the application procedure and the proposed timescale.