Competition & Antitrust updates

Bulgaria

Contributed by Schoenherr Attorneys at Law
CPC deems minimum hotel accommodation prices anti-competitive
  • Bulgaria
  • June 14 2018

The Ministry of Tourism recently proposed the introduction of minimum prices for sites categorised as 'accommodation places'. However, the Commission for Protection of Competition (CPC) opined on the proposal's compliance with competition rules. The CPC highlighted the fact that accommodation prices depend on many factors other than category, which makes it practically impossible to set a minimum price for a category that would be adequate in every case.

Private damages directive implemented in law
  • Bulgaria
  • March 15 2018

The Act for Amendment and Supplementation of the Competition Protection Act was recently promulgated in the State Gazette. The new act follows the scope of the EU Damages Directive and applies to infringements of the Competition Protection Act regarding prohibited agreements and abuse of dominance.

Commission fines Laptop.BG for video blog content
  • Bulgaria
  • January 11 2018

The Commission for the Protection of Competition recently fined Laptop.BG for unfair practices in the form of contradicting genuine practices. An investigation was opened at the request of Golden Green Stone Group EOOD, the owner of online shopping brand eVarna, which claimed that a blogger had performed prohibited comparative advertising in favour of Laptop.BG, thereby damaging eVarna's reputation and consciously redirecting consumers to Laptop BG's online platforms.

Competition Commission sends statements of objection for abuse of dominant position
  • Bulgaria
  • November 02 2017

The Competition Commission recently sent statements of objection for abuse of dominant position by three electricity distribution and supply companies. According to the commission, allegations were made that the companies had traded information regarding customers switching from the regulated market to the liberal market in order to purposely stall the necessary paperwork.

Competition Commission fines Sofia Commodity Exchange for unfair competition
  • Bulgaria
  • October 26 2017

A recent competition breach by the Sofia Commodity Exchange AD resulted in a 0% fee for purchasers (ie, members of the exchange). The Supreme Administrative Court and the Competition Commission both held that the lack of fees had placed purchasers in a more favourable position, leading to unfair competition which contradicted good-faith practices. In addition to a fine based on the net turnover of sales, the commission ordered the immediate suspension of the exchange's breaching activities.


Chile

Contributed by González & Rioseco Abogados
New competition control procedure for mergers introduced
  • Chile
  • November 09 2017

The latest reform of the Competition Statute introduces a preventive control procedure for merger operations that have effects in Chile. As of June 1 2017 the national economic prosecutor will undertake a control procedure for merger operations before they begin. The amendment aims to provide legal certainty and reduce the length of merger control procedures.

Competitive edge: changes to antitrust law introduced
  • Chile
  • January 26 2017

Changes were recently introduced to Chile's antitrust regulation, including a mandatory M&A review by the National Economic Prosecutor's Office, a ban on interlocking directorates and mandatory notification of cross-ownership between rival firms. These changes will have a significant impact on firms in the short term. The new administrative duties that the act imposes are preventive in character and align Chile's antitrust regulations with international practice.


China

Contributed by AnJie Law Firm
Shifting alliances under Chinese merger control regime
  • China
  • May 17 2018

The Ministry of Commerce recently promulgated the Measures for the Review of Concentrations of Business Operators (revised draft) for consultation. However, the revised draft still lacks provisions on the shifting alliances concept. The relevant Anti-monopoly Law enforcement agencies should consider this concept in future, as acknowledging it at the legislative level will finally place China's antitrust system among those of the world's most advanced anti-monopoly jurisdictions.

Anti-monopoly Law enforcement against collective boycotts
  • China
  • May 10 2018

The Anti-monopoly Law enforcement agencies are increasingly investigating and finding fault with collective boycotts among competitors. As the presumption of illegality for collective boycotts requires a high level of compliance, businesses should be aware that although an independent decision not to deal with distributors or suppliers may not raise Anti-monopoly Law concerns, an agreement with competitors not to do so could raise such concerns.

How will merger of antitrust enforcement agencies affect Anti-monopoly Law enforcement?
  • China
  • April 19 2018

The State Council recently submitted a proposal to the National People's Congress concerning the council's institutional reform programme. The proposal has shed light on the plans to consolidate the antitrust enforcement powers of the three antitrust agencies under the State Administration for Market Supervision. Although the merger is significant in terms of institutional reorganisation, it will not fundamentally change Anti-monopoly Law enforcement activities in China.

NDRC antitrust enforcement in 2017
  • China
  • April 12 2018

In 2017 the National Development and Reform Commission actively carried out legislative work and formulated and promulgated industrial guidelines and enforcement procedures. In addition, it remained active in its antitrust enforcement by not only penalising a variety of enterprises for anti-competitive conduct, but also targeting administrative agencies that had abused their administrative power in order to restrict or eliminate competition.

Pharmaceutical companies face harsher antitrust compliance challenges
  • China
  • January 18 2018

The National Development and Reform Commission recently released price conduct guidelines for business operators active in the drugs prone to shortages and active pharmaceutical ingredient (API) markets. The guidelines strengthen the API market's price supervision mechanism, clearly regulate market pricing behaviour with regard to drugs prone to shortages and APIs and provide practical guidance for relevant pharmaceutical companies with regard to their pricing behaviour.


Croatia

Contributed by Moravčević Vojnović and Partners in cooperation with Schoenherr
New unfair trading act
  • Croatia
  • February 22 2018

Over the past few years, European and national institutions have warned about the negative effects of unfair trading practices in the supply chain. In order to tackle these and regulate the risk of abuse, several countries have enacted distinct trade laws. Croatia recently followed suit by adopting a new Act on the Prohibition of Unfair Trading Practices in the Business-to-Business Food Supply Chain. The act defines the concept of 'significant buyer power', as well as different types of illegal behaviour.

Agency rules on relevant market – how battle for market definition yielded results
  • Croatia
  • July 21 2016

In July 2015 the Competition Agency received an initiative to initiate proceedings against Ytong porobeton (YP) for alleged abuse of its dominant position. YP rejected all of the assertions against it, arguing that the relevant market had been incorrectly determined. Based on expert opinions, the agency concluded that YP was not dominant on the relevant market and thus that it had not abused its dominant position.

Participation of associations in cartels: another twist in the saga
  • Croatia
  • February 04 2016

In a recent case the Competition Agency for the first time accepted the proposed commitments in a case conducted under the qualification of a prohibited agreement, even though all the characteristics of a prohibited horizontal agreement limiting competition were present. By accepting the commitments, the agency abandoned its previous position in favour of a more lenient one.

Lessons learned from alleged cartel case against insurers
  • Croatia
  • January 28 2016

In a recent ruling by the Croatian Competition Agency (CCA), a decision by the Croatian Insurance Bureau to revoke the power of an insurer to issue motor certificates was found not to constitute a prohibited agreement. Irrespective of this, the CCA noted that it is not the role of undertakings to control the operation of their competitors, and that the parties involved should have reported the insurer if they thought it had breached the law.

Marina cartel decision demonstrates increased detection of cartel activity
  • Croatia
  • September 03 2015

The Competition Agency is improving its track record in competition law enforcement. One recent decision concerned a cartel of marina operators which exchanged information on future pricing policies for berthing services. Although the parties agreed not to raise the prices of their services (or to raise them minimally), the information exchange was deemed sufficient for the agency to render a statement of objections.


Cyprus

Contributed by L Papaphilippou & Co LLC
Competition commission initiates proceedings against Mechanical and Electrical Contractors Association
  • Cyprus
  • February 16 2017

The Commission for the Protection of Competition recently announced that it will initiate proceedings against the Mechanical and Electrical Contractors Association for the prima facie infringement of Section 3.1.b of the Protection of Competition Laws of 2008 and 2014. Once the investigation has been completed and the hearing concluded, all oral and written submissions and observations by the parties will be examined and the commission will publish its final decision.

Competition commission announces investigations into alleged competition law violations
  • Cyprus
  • September 08 2016

The Commission for the Protection of Competition recently announced investigations into two alleged competition law violations. The first concerns the alleged manipulation of tendering procedures initiated by the Ministry of Transport, Communications and Works for the supply of ready-mix concrete, while the second relates to an alleged abuse of a dominant position in the valet parking services market at Larnaca International Airport.

Guidance on definition of 'undertaking' and 'association of undertakings'
  • Cyprus
  • March 24 2016

The Supreme Court of Cyprus recently provided useful guidance on the definition of 'undertaking' and 'association of undertakings'. The case concerned an administrative recourse against a Commission for the Protection of Competition decision which held that the Limassol Licenced Porters Association had displayed restrictive behaviour and abused its dominant position.

Commission announces issue of statement of objections
  • Cyprus
  • December 17 2015

The Commission for the Protection of Competition recently announced that it had issued a statement of objections to the Cyprus Telecommunications Authority (CYTA) for alleged prima facie violations of competition law. The alleged infringements concerned CYTA's dominant position in the retail pay television and retail broadband internet markets through the pricing of its services between 2009 and 2010.

Commission issues interim decision on parking services complaint
  • Cyprus
  • September 24 2015

The Commission for the Protection of Competition recently published an interim decision concerning a complaint filed by undertakings that provide valet services against the firm that manages Larnaca International Airport. The complaint concerned alleged price fluctuations and changes to designated parking spaces that the respondent had implemented without consulting the applicants.