Articles

Court of Justice confirmed independence of EU and national leniency programmes

Court of Justice confirmed independence of EU and national leniency programmes

Court of Justice confirmed independence of EU and national leniency programmes

02.02.2016 NL law

On 20 January 2016, the Court of Justice ruled on the relationship between leniency applications submitted to the Commission and to national competition authorities ("NCAs") concerning the same cartel. In response to three questions referred by the Italian Council of State, the Court of Justice found that:

(i) instruments adopted within the context of the European Competition Network ("ECN") are not binding on NCAs;

(ii) there is no "legal link" between an immunity application submitted to the Commission and a summary application to an NCA in respect of the same cartel; and

(iii) EU law does not preclude national authorities from accepting a summary application for immunity even though the undertaking concerned did not apply for full immunity from fines to the Commission.

The judgment concerns leniency applications lodged by logistics company DHL before the Commission and the Italian competition authority ("AGCM") in 2007 and 2008 relating to several infringements in the international freight forwarding sector.

DHL received conditional immunity from the Commission for the entire freight forwarding sector (i.e. sea, air, and road forwarding). The Commission ultimately decided to limit its investigation to the air freight forwarding sector, thus leaving it open for NCAs to investigate infringements in the sea and road sectors. In parallel, DHL was the first to submit a summary application to the AGCM.

In 2011, the AGCM adopted an infringement decision concerning the road freight forwarding sector in Italy. DHL, however, failed to receive full immunity because the AGCM considered that DHL's initial summary application only provided details with respect to infringements in the international sea and air freight forwarding sectors. DHL subsequently appealed the decision up to Italy's highest court, essentially arguing that its summary application should have been assessed in light of the immunity application submitted to the Commission. In support of its appeal, DHL relied on the ECN Model Leniency Programme, the Commission Notice on Cooperation within the Network of Competition Authorities and the Commission Leniency Notice. Within this context, the Italian Council of State referred questions to the Court of Justice on the legal status of these measures.

The Court of Justice first held that instruments adopted by the ECN, including the ECN Model Leniency Programme, are not binding on NCAs. In that respect, the Court of Justice referred to its previous judgment in Pfleiderer where it had found the same to be true for the Commission Notice on Cooperation within the Network of Competition Authorities and the Commission Leniency Notice.

The Court of Justice also found that no provision of EU law requires NCAs to interpret a summary application in light of an application for immunity submitted to the Commission, irrespective of whether or not that summary application accurately reflects the content of the application submitted to the Commission. NCAs are also not required to contact the Commission or the undertaking itself in order to establish whether that undertaking has found specific examples of unlawful conduct in the sector allegedly covered by the application for immunity but which is not covered by the summary application.

Lastly, the Court of Justice held that NCAs are not precluded from accepting a summary application for immunity from an undertaking which has not submitted an application for full immunity to the Commission but rather an application for reduction of the fine.

As there is no legal link between EU and national leniency applications, companies should ensure to submit sufficiently detailed leniency applications in each relevant Member State - in particular as regards its scope - in parallel to an application to the Commission.

This article was published in the Competition Law Newsletter of February 2016. Other articles in this newsletter:

  1. Court of Justice reduced fine imposed on Galp Energía España and acknowledged excessive duration of General Court proceedings
  2. Court of Justice clarified the concept of a concerted practice for unilateral announcements
  3. Court of Justice dismissed Toshiba's appeal in the power transformers cartel case
  4. Belgium's "excess profit" tax scheme qualified as illegal state aid
  5. German Competition Authority fined ASICS for restricting Internet sales of its distributors

Team

Related news

03.08.2022 EU law
Gotta catch ‘em all? Upward referral of ‘killer acquisitions’ upheld

Short Reads - Companies involved in intended or completed M&A transactions falling below EU and national merger notification thresholds should beware that their deals may still catch the European Commission’s eye. The General Court has upheld the Commission’s decision to accept a national referral request regarding Illumina’s acquisition of Grail: a transaction not triggering any of the notification thresholds within the EEA.

Read more

06.07.2022 NL law
Highest Dutch court: the postman may still ring twice?

Short Reads - The Dutch Minister of Economic Affairs and Climate Policy was wrong to unblock the ACM’s prohibited merger between postal operators PostNL and Sandd on grounds of public interest. According to the Trade and Industry Appeals Tribunal (CBb), the Minister cannot substitute the ACM’s assessment for its own when considering public interest reasons. Since the Minister did do so in this particular case, the CBb annulled the Minister’s merger clearance.

Read more

28.07.2022 NL law
Purely commercial interest also a legitimate interest? Council of State leaves the question unanswered.

Short Reads - On 27 July 2022, the Council of State confirmed that the Dutch Data Protection Authority wrongly imposed a €575,000 fine on VoetbalTV. But the Council did not answer the question whether the AP rightly or wrongly believes that a purely commercial interest cannot be a legitimate interest within the meaning of the General Data Protection Regulation.

Read more

06.07.2022 NL law
Foreign Subsidies Regulation crosses the finish line

Short Reads - On 30 June 2022, the European Parliament and the European Council reached agreement on the final text of the Foreign Subsidies Regulation. Adding to the regulatory burdens, this Regulation creates a notification obligation for companies that receive subsidies from non-EU governments in transactions or public procurement procedures. 

Read more

28.07.2022 NL law
Zuiver commercieel belang ook gerechtvaardigd belang: Raad van State laat zich er niet over uit

Short Reads - Op 27 juli 2022 heeft de Raad van State bevestigd dat de Autoriteit Persoonsgegevens onterecht een boete van € 575.000 aan VoetbalTV heeft opgelegd. De hoop bestond dat de Afdeling antwoord zou geven op de vraag of de AP terecht of onterecht meent dat een zuiver commercieel belang géén gerechtvaardigd belang kan zijn in de zin van de Algemene Verordening Gegevensbescherming. Het antwoord op deze vraag blijft echter uit.  

Read more

06.07.2022 NL law
Take note(s): Qualcomm’s EUR 1 billion dominance abuse fine quashed

Short Reads - The General Court annulled the Commission’s EUR 1 billion fine imposed on Qualcomm for abuse of dominance on the LTE chipsets market. In addition to finding fault with the Commission’s foreclosure analysis of Qualcomm’s alleged exclusivity payments, the General Court found that the Commission’s procedural irregularities alone would have sufficed to set the Commission’s decision aside.

Read more