EU & Competition Law ezine
NOVEMBER 2006

This Issue:
- M&A News
- Irish Competition News
- European Competition News
- State Aid Review
Regulatory News
- Public Procurement Review


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Regulatory News

Commission adopts new revised block exemption for IATA passenger tariff conferences

On 2 October 2006, the Commission announced that it has adopted a revised block exemption regulation on the application of Article 81(3) of the EC Treaty to categories of agreements and practices relating to consultations on passenger tariffs on scheduled air services and slot allocation at airports.  The proposed new Regulation will replace Regulation 1617/93, which expired on 30 June 2005.  The block exemption relating to tariff conferences on EU routes and for slots and scheduling conferences is to end on 31 December 2006.

Source:http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/1294&format=HTML&aged=0&language=EN&guiLanguage=en 

European Court rules against Dutch golden shares in post and telecommunications companies

On 28 September 2006 the European Court of Justice ruled that the Dutch Government’s minority stake in telecom company Royal KPN NV and the Dutch Post Office TNT Postgroep NV was illegal. The government’s "golden share", which effectively gave it the right to block any potential mergers was held to be likely to deter investors of other Member States from investing in KPN and TPG.

According to the ECJ the golden share in TPG went beyond what was necessary to keep the company running the country's mail delivery services. In relation to KPN, the Court said that the Dutch government had failed to prove that it had a special interest in order to justify keeping its stake.

To date the only golden share case to have been upheld by the EU was in 2002 when the Belgian government was permitted to keep a special stake in energy company Distrigaz. 

Source: Case C-282/04 and C-283/04, Commission v Kingdom of Netherlands, judgment of 28 September 2006.

New International Energy Regulation Network website launched

On 16 October 2006, the European Regulators Group for Electricity and Gas (ERGEG) and the Council of European Energy Regulators (CEER) announced that a new International Energy Regulation (IERN) Network website has been launched.  The website address is http://www.iern.net/

ERGEG publishes guidelines for good practice on information management and transparency

ERGEG has published new Guidelines for good practice on information management and transparency in electricity markets.  The new guidelines aim to establish a uniform approach to the provision of market related information to wholesale electricity market participants across the EU.  The guidelines set out ERGEG's views on the required minimum level of transparency by providing a minimum set of rules for the management and dissemination of information across the EU.  They also specify requirements on information transparency in a number of areas.  While implementation of the guidelines is currently on a voluntary basis, ERGEG has advised the Commission that it would like to make them legally binding.

Source: http://ec.europa.eu/energy/electricity/florence/doc/florence_13/ergeg_tr_paper.pdf 

Commission publishes proposal to open up postal markets to full competition

On 18 October 2006 the Commission presented a proposal for a new directive to fully open EU postal markets to competition by 2009. Full market opening will mean that national postal operators will lose their monopoly on mail below a certain weight (currently a maximum of 50 grams).
The current Commission proposals are in line with its belief that full market opening is the best way to maintain universal service in the postal markets whilst improving the quality and choice for EU consumers and businesses. According to Internal Market and Services Commissioner Charlie McCreevy said: "With full market opening in 2009, we can look forward to more innovation, better services and improved cost-efficiency. Without it, EU postal markets will be increasingly unable to meet the challenges of the communications revolution."

Source:http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/1419&format=HTML&aged=0&language=en&guiLanguage=en 

European Ombudsman opens inquiry against the Commission in relation to roaming charges

On 23 October 2006, the European Ombudsman publicised that it has launched an inquiry into alleged maladministration by the Commission in the conduct of its inquiry into the market for roaming services.  The inquiry follows on from a complaint by O2 that the Commission did not grant it proper rights of defence in the framework of proceedings against it. The mobile phone operator further complained that the Commission had failed to provide it with proper access to files and information and that it had failed to allow for a reasonable timeframe for responding to allegations.

The Ombudsman has asked the Commission to respond to O2’s allegations before 31 December next.

Source:http://www.ombudsman.europa.eu/release/en/2006-10-23.htm 

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The contents of this Newsletter are necessarily expressed in broad terms and limited to general information rather than detailed analyses or legal advice. Specialist professional advice should always be obtained to address legal and other issues arising in specific contexts.

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