Insights

On June 1, 2022, the various governments of Belgium reached a cooperation agreement on a screening regime for foreign direct investments (FDI). The new regime aims to protect Belgium’s national security, public order, and strategic interests. To that end, transactions in a wide range of sectors, and regardless of their size, will be subject to mandatory and suspensory notification to a new body, the Interfederal Screening Commission (ISC). The new regime is currently expected to enter into force by mid-2023.

The new Vertical Block Exemption Regulation (VBER) and accompanying Vertical Guidelines were finally adopted in May 2022 after four years of consultations and review. The new competition rules applicable to distribution and other vertical agreements take into account the specific challenges brought about by the growth of e-commerce and online platforms in the “digital age.” 

In response to the digital revolution and the increasing impact technology has on business, Competition Authorities on both sides of the Atlantic are stepping up merger control enforcement. They are revising current policies, advocating for more aggressive use of existing rules to their full potential effect, and calling for new laws and regulations where they see the need. What does this mean for companies engaging in transactions in the digital marketplace and other industries? Is it becoming harder to predict if a deal will be subject to merger control? Are some deals more likely to receive enhanced scrutiny than others? And, what are the broader implications for all sectors when Competition Authorities push the boundaries on traditional theories of harm and remedies, and prohibitions become more commonplace?    

Many sectors are currently facing supply shortages and price increases for inputs. Companies are looking for strategies to tackle these issues and maintain profitability. However, in doing so, they have to be careful not to fall foul of competition rules.

The COVID-19 pandemic has illustrated more clearly than ever that there is a global need for sustainable, social and ethical business leadership. A conscious and effective ESG policy is therefore high on the agenda of private and public companies and is becoming increasingly important for shareholders, investors and customers. Also, legislators are not lagging behind and there are many recent initiatives, especially at EU level, that will have an impact on the sustainability policies of companies.

Please join us for this year’s virtual Annual EU Competition Law Conference, co-hosted by Crowell & Moring and King’s College. Given major proposed and existing legislative reforms in competition law across the globe, we will explore how these reforms are being or can be practically implemented in a panel discussion, followed by a fireside chat and Q&A session. Topics include:

In this webinar we will focus on everything in-house lawyers need to know about the competition law aspects of M&A transactions. We will follow the lifecycle of a deal and address the questions that must be dealt with at each stage of the process. We will consider issues that arise at the start of the negotiations, or during the due diligence process, for both notifiable and non-notifiable transactions. We will also discuss what types of transactions are subject to merger control, what impact a notification has on the process and the timing, and we will cover best practices for pre-closing competition compliance.

In these unprecedented times, it is increasingly important for companies across all sectors to feel comfortable navigating the complex rules on state aid. On the one hand, state aid can be an important resource – granted by EU member states to support companies affected by the COVID-19 pandemic or stimulate investments (albeit subject to strict conditions). On the other hand, the European Commission is committed to vigorously pursuing any violation of the state aid rules – something that can lead to a multimillion, or even a multibillion euro bill in recovery measures.

There have been some major changes in the B2B landscape recently. Most of these changes are now either in effect or are on the verge of being so. The new rules on unfair market practices entered into force on September 1, 2019 followed by the rules prohibiting abuse of economic dependence on August 22, 2020. And now, on December 1, 2020, the new rules on unlawful contract terms will kick in.

With the growth of online sales and the introduction of new market players, such as online platforms, the relationship between suppliers and their distributors has changed dramatically. It was not until fairly recently that the European Commission acknowledged that the competition rules have not evolved with this changing landscape and that many questions regarding online sales remain unanswered. The Commission’s recent practice and the current review of the Vertical Block Exemption Regulation (VBER) are intended to provide clarity with regard to the application of the competition rules to the e-commerce industry.

As companies enter the post-COVID era, certain disagreements created by the crisis have not yet been resolved and new disputes linked to this unprecedented period are seeing the light of day. 

On Wednesday, April 15, Crowell & Moring and Global Competition Review will host a webinar exploring how the recent increased antitrust scrutiny and enforcement related to large technology platforms will present risks and opportunities beyond big tech firms and impact companies across all industries. The discussion will also address how the COVID-19 pandemic is affecting these investigations worldwide. The webinar will be moderated by Crowell & Moring’s Andy Gavil.