AKD publishes a monthly newsletter to inform you of the most important recent developments in competition law and adjacent regulation (such as FDI) at EU level and in the Benelux. Last month brought a number of notable developments. This newsletter brings you entirely up-to-date!
The European Commission ("Commission") has fined 15 major car manufacturers for participating in a long-term cartel for the recycling of end-of-life vehicles. The European Automobiles Manufacturers' Association ("ACEA") was also fined for facilitating the cartel by organising meetings. Mercedes-Benz was able to avoid the fine under the leniency program by being the first participant to report the cartel to the Commission.
The cartel members coordinated the following conduct over a period of 15 years. First, they agreed not to pay car dismantlers for processing end-of-life vehicles and to consider the recycling of end-of-life vehicles as a sufficiently profitable business ("Zero-Treatment-Cost Strategy"). In this context, they shared commercially sensitive information about individual agreements with car dismantlers. Secondly, they agreed not to promote the proportion of an end-of-life vehiche that is eligible for recycling and the extent to which recycled materials are used in new cars. With this agreement, the cartel members aimed to prevent consumers from considering recycling when purchasing new cars. This course of events would reduce the pressure on car manufacturers to go beyond the legal requirements regarding recycling.
ACM approves in informal assessment an alliance between competitors on sustainable garments, textile and shoes
The Alliance on Sustainable Garments, Textile and Shoes (“Alliance”) is a collaborative initiative between companies active in the clothing, footwear, leather, and textile sectors, industry associations and civil society organisations. The goal of the initiative is to improve international corporate social responsibility. The signatories to the Alliance agree that workers can organize themselves in unions and that they work towards transparent supply chains. In addition, they make a joint risk analysis. The initiative is a collaboration between competitors and therefore it potentially falls within the scope of the cartel prohibition. The Authority for Consumers & Markets ("ACM") has assessed the initiative based on its Policy Rule ACM’s oversight of sustainability agreements.
The ACM concludes that the initiative does not restrict competition. The initiative is open to all companies in the sector and only sets minimum requirements. Furthermore, participants determine themselves how they want to make their own production chain more sustainable. Participants can decide not to do business with certain suppliers or customers. If this is done individually, it is not a problem. If participants make collective agreements, it must be assessed on a case-by-case basis whether these arrangements restrict competition. Furthermore, there is no exchange of sensitive information. There are sufficient safeguards (independent secretariat, independent dispute mechanism, etc.) to prevent this risk from occurring. According to the ACM, the public disclosure of production locations, without additional information about volumes, conditions, costs, and product types, does not lead to unauthorised information exchange.
One part of the initiative are the risk modules. In these modules, risk analyses are made per theme. The themes include, for example, agreements regarding forced labour, materials, wages, health & safety at work, and climate change & greenhouse gas emissions. It is not yet clear which arrangements will be made in the context of these risk modules and they will therefore, according to the ACM, need to be assessed on a case-by-case basis. The ACM does note in its assessment that in case agreements are made about wages, in principle this would not pose risks to competition provided that the participants continue to independently determine the level of wages, (purchase) prices, and the method of passing on (wage) costs.
The Belgian Competition authority fines three pharmaceutical undertakings for anti-competitive category management arrangements
The Belgian Competition Authority (“BCA”) has sanctioned Johnson & Johnson Consumer, Boehringer Ingelheim and Haleon with a combined fine of approximately EUR 11 million in a settlement concerning an anti-competitive category management arrangement for over the counter (“OTC”) medicines. The arrangement lasted for more than 15 years.
The undertakings jointly set up the category management arrangement in pre-selected pharmacies in Belgium. The undertakings called this the ‘Space Management Project’. The BCA submits that while category management arrangements are not prohibited as such, the Space Management Project featured anti-competitive characteristics. Competing sellers of OTC-medicines were excluded in the design and implementation of the planograms used for the placement of OTC medicines, and the own products were favoured. Furthermore, the implementation of the arrangements was strictly monitored by the undertakings.
The BMA's decision on category management deserves attention because there are very few precedents in Europe: so far, competition authorities have essentially left this topic unaddressed in their enforcement practice.
Merger control
European Commission approves acquisition of Collins Aerospace by Safran subject to conditions
The European Commission (“Commission”) has approved the acquisition of Collins Aerospace by Safran USA Inc (‘Safran’), subject to conditions. Both Collins Aerospace and Safran are active in the aerospace sector. The Commission found that the proposed transaction, as notified, was likely to lead to a significant lessening of competition on the market for the supply of so-called trimmable horizontal stabiliser actuator systems or ‘THSA-systems’.
The Commission was concerned that this potential lessening of competition could lead to higher prices for THSA-systems, which would in particular affect civilian aircraft manufacturers. To counter the negative effects of the proposed transaction, Safran has offered to divest its North American THSA business. The Commission found that the offered divestment fully addressed its competition concerns on the relevant market and thus decided to approve the transaction subject to Safran’s completing the offered divestment.
In the UK, the Competition and Markets Authority (“CMA”) is currently also investigating the proposed transaction. To prevent an in-depth Phase 2 investigation into the merger, Safran has offered commitments to the CMA. Apart from the proposed divestment of the North American THSA business, Safran has also offered to divest some of its other business activities in North America. The CMA’s investigation is still ongoing.
European Commission opens investigation into acquisition of Downtown by UMG after referral by the Netherlands and Austria
On 24 February 2025, Universal Music Group N.V. (“UMG”) and Downtown Music Holdings LLC (“Downtown”) requested approval from the Dutch Authority for Consumers & Markets (“ACM”) for UMG’s acquisition of Downtown. The proposed acquisition remains below the EU notification thresholds under Article 1(2) of the EU Merger Regulation but exceeds the notification thresholds of Article 29 of the Dutch Competition Act.
Since UMG and Downtown operate globally, the ACM expected the negative effects of the acquisition to also occur in other EU countries. Therefore, under Article 22(1) of the EU Merger Regulation, the ACM requested the European Commission (“Commission”) to conduct the investigation. Due to similar concerns, the Austrian competition authority joined the ACM’s referral request.
On 25 April 2025, the Commission announced that the proposed acquisition meets the criteria for referral under Article 22 of the EU Merger Regulation. Based on the information provided, the Commission concluded that the proposed acquisition threatens to significantly affect competition in certain markets of the music value chain across several EU Member States. The Commission has requested that UMG notify the transaction. UMG and Downtown cannot implement the transaction before notifying and obtaining clearance from the Commission.
Digital Markets Act
European Commission fines Apple and Meta for breach DMA
On April 23, 2025, the European Commission (“Commission”) fined Apple and Meta for infringement of the Digital Markets Act (“DMA”). Apple and Meta received a fine of € 500 million and € 200 million respectively.
The Commission established that Apple has violated the DMA’s standards with its App Store. Under the DMA, app developers distributing their apps via the Apple Store should be able to inform customers, free of charge, of alternative offers outside the App Store, steer them to those offers and allow them to make purchases. By imposing several restrictions on app developers, Apple failed to comply with these obligations. As part of the Commission’s decision, Apple is ordered to lift the technical and commercial restrictions and not to impose similar restrictions in the future.
Until November 2024, Meta operated the so-called “Consent or Pay” advertising model. Under this model, EU users of Facebook and Instagram had a choice between (i) giving Meta permission to combine personal data for personalised advertising, or (ii) taking a monthly paid subscription to an ad-free service. According to the Commission, this model is not compliant with the DMA. Under the DMA, users who do not wish to give their consent to the combination of their personal data between different services of a gatekeeper must have access to a less personalised but equivalent alternative. The fine imposed relates to the time period between March 2024 and November 2024. Meta has since introduced a new advertising model that is currently under assessment by the Commission.
Apple and Meta are required to comply with the Commission’s decision within 60 days.
State aid
European Commission publishes State aid scoreboard 2024
The European Commission has published the 2024 State aid scoreboard. The scoreboard provides an overview of State aid spending in the European Union in 2023. Notably, the State aid spending in the European Union dropped from EUR 243.27 billion in 2022 to EUR 186.78 billion in 2023. This was mainly caused by the phasing out of crisis aid that was aimed at mitigating the consequences of the COVID-19 pandemic and the war in Ukraine. EU Member States spent the most on environmental protection and energy savings. Around 38% of the total expenditure in 2023 by all Member States was exempted under the various block exemptions.