C&RR, Issue 2015/5

Competition

& Regulation Report

N o v e m b e r – D e c e m b e r 2 0 1 5

EDITORIAL: Resale Price Maintenance (RPM): The French Autorité de la concurrence provides useful clarifications.

HIGHLIGHTS

 The General Court annulled the decision by which the Commission imposed fines on several airlines for their participation in a cartel in the airfreight market  Greece: HCC fined Athenian Brewery S.A. for an abuse of dominance in the Greek beer market. The company refutes the charges.  General Court judgment in joined cases T-233/11 and T-265/11: State aid for Greek mining company Ellinikos Xrysos  The General Court annulled the Commission’s decision finding that the ‘Spanish tax lease system’ was illegal State aid  The General Court confirmed that the state aid in the sum of € 503 million granted by France to Sernam and conditionally approved by the European Commission in an earlier decision was wrongfully implemented  The European Commission invited Greece to better target its "tonnage tax" and related support measures in the maritime sector.  The European Commission opened formal investigation into Luxembourg's tax treatment of McDonald's  Greece : The Ministerial Decision for the Greek interruptibility scheme was published in the Governmental Gazette

TOPICS IN THIS ISSUE

 Antitrust  Mergers  State Aid  Energy  Electronic Communications  Pharmaceuticals  Transport  News of the Markets

© KLC Law Firm. The content of this Issue is designated only for general information purposes and should not be construed as legal advice in general or in any specific case neither as business or investment advice. Clients wishing to have legal advice on behalf of our Firm on a specific factual context should contact appropriately the Lawyers of the Firm.

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Editorial: to the above, the Autorité’s investigating service considered such practices could Resale Price Maintenance (RPM): The in fact constitute resale prices imposed French Autorité de la concurrence by Nintendo, and a statement of provides useful clarifications. objections was sent to Nintendo in that regard.

With its Decision No. 15-D-18 of In its Decision of December 1st 2015, December 1st 2015, the Autorité de la the Autorité first referred to its strict concurrence ruled in favor of Nintendo practice on resale price maintenance, France and its Japanese parent pursuant to which the standard of proof company, Nintendo Co. Ltd., thus of such unlawful agreements on resale ending the procedure initiated by the prices, in the absence of express General Directorate for Competition agreements between the parties, “results Policy, Consumer Affairs and Fraud from the gathering of a bundle of Control (DGCCRF) against Nintendo serious, precise, and coherent evidence eight years ago over alleged including cumulatively: 1) the disclosure anticompetitive resale price of the resale price of the products maintenance (RPM) in relation to its between the supplier and its “Wii” games console. distributors, 2) the implementation of a system of monitoring the resale prices, The European Commission has and 3) the fact that the disclosed resale defined RPM as [vertical] “agreements prices have in practice been applied. or concerted practices having as their Together, these three types of evidence direct or indirect object the constitute a condition sufficient to establishment of a fixed or minimum establish the agreement of the supplier resale price or a fixed or minimum in general and between a distributor price level to be observed by the and its supplier in particular. Proof of 1 buyer.” In the case at hand, the each of these three types of evidence practice alleged against Nintendo dates may be freely established by any back to the launch of the Wii console means.”2 on the European market in December 2006. More specifically, to mark the In the case at hand, the Autorité held launch of its Wii console on the that the first of the above conditions European market, Nintendo held a had been met, since the press conference in London, during announcements made by the group’s which the president of the group made president at the press conference, and several announcements on the sale subsequently reported in France prices of the Wii console, indicating through Nintendo’s European website that the “estimated” sale price of the and by the press, concerned the French new console was €249. This market and were intended to inform the information was then reported on distributors of the recommended resale Nintendo’s European website and on prices. However, as regards the second several media platforms. With respect of the abovementioned conditions, the

1 Commission notice - Guidelines on Vertical 2 This standard of proof has also been Restraints, Official Journal C 130, 19.05.2010, confirmed by the Court of Appeal of Paris (the “Guidelines on Vertical Restraints”), (Appeal Court of Paris, 26 January 2014, paragraphs 48 and 223 Beauté Prestige International)

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Autorité concluded that it had not been a clause is included in a rental proven that Nintendo had implemented agreement does not mean that the a price monitoring system. whole agreement was set up to restrict Consequently, without there being a competition in the meaning of Article need to examine the third element of 101 (no restriction by object). The court the required bundle of evidence, the held however that such agreements may Autorité considered that no resale price result in restricting competition maintenance could be upheld against (possible restriction by effect), Nintendo and dismissed the depending on the concrete facts of the proceedings against it. case and the context in which the agreements occur. To read the full It must be noted that although judgment of the CJEU in case C- Nintendo was not held liable in this 345/14, click here. case, the rationale of the decision shows that the announcement of resale prices by suppliers is interpreted in a very European Commission: Public broad manner by the Autorité, and Consultation on “Empowering the thus, the first condition for a vertical national competition authorities to be unlawful agreement on resale prices is more effective enforcers” easily met. Suppliers must therefore be careful in their public communications, The European Commission decided to and must also be very vigilant in consult stakeholders on how to ensuring that they do not monitor empower the national competition distributors’ resale prices. authorities (NCAs) to be more effective enforcers. While EU law (Regulation To read the full text of Decision No. 1/2003) gave NCAs the competence to 15-D-18 of December 1st 2015 of the apply the EU competition rules, it did Autorité de la concurrence click here. not tackle the means and instruments by which NCAs apply those rules. As a Antitrust result, NCAs encounter difficulties in carrying out their work and in tapping Court of Justice of the European their full potential. Stakeholders are Union: Preliminary ruling in case C- invited to answer those parts of the 345/14 SIA 'Maxima Latvija" vs. questionnaire which concern them and Konkurences padome to provide any other comments or information which they consider to be In its judgment of 26.11.2015 in case C- relevant. The consultation period starts 345/14, the Court of Justice of the 04.11.2015 and ends on 12.02.2016. European Union (CJEU) ruled on To read the relevant information of the preliminary questions referred by the European Commission click here. Latvian Supreme Court regarding Article 101(1) TFEU. These concern a New European Commission Guidelines case where rental agreements of on joint selling of olive oil, beef and commercial property in shopping veal, and arable crops centres included a clause that granted the main lessee the right to oppose the The European Commission adopted letting of property to other tenants. The new Guidelines on how specific CJEU ruled that the mere fact that such agricultural derogations from EU

November-December 2015 Page 3 C&RR, Issue 2015/5 antitrust rules apply to the sale of Greece: HCC fined Athenian Brewery certain agricultural products. The S.A. for an abuse of dominance in the Guidelines will help explain to farmers Greek beer market. The company how, if certain conditions are fulfilled, refutes the charges. they can jointly sell olive oil, beef and veal, and arable crops in compliance Following an investigation (ex officio with EU competition rules. The and upon a complaint by Mythos European markets for these three Brewery S.A.), the Hellenic products are worth more than Competition Commission (HCC) €80 billion annually. The new found that Athenian Brewery S.A., a Guidelines complement the 2013 subsidiary of Heineken N.V. active in Common Agricultural Policy (CAP) the production and distribution of beer Reform that introduced a number of in Greece, abused its dominant changes to the rules on how EU position, thereby infringing Articles 2 of farmers can cooperate. The aim of the the Competition Act and 102 EU CAP reform measures is to increase the Treaty. A fine totaling € 31.451.211 competitiveness and sustainability of was imposed on Athenian Brewery S.A. EU farmers and strengthen their for the said infringement. The company bargaining power vis-à-vis buyers, while was also required to cease the still preserving a market-oriented infringement and to introduce written approach. To read the full press contracts with amended terms, so as to release of the European Commission avoid the continuance of the (IP-15-6187) click here. infringement. However, pursuant to a press release dated 01.12.2015, The European Commission to consult Athenian Brewery S.A. refutes the on boosting enforcement powers of aforementioned charges of the HCC national competition authorities and reserves its right to contest the decision of the HCC and to defend its The Commission invited the general rights before the competent public and stakeholders to share their Administrative Courts of Greece. experience and provide feedback on According to the same press release of potential EU legislative actions to the Athenian Brewery, the company further strengthen the enforcement and claims that the HCC did not take into sanctioning tools of national account the documentation – competition authorities. Responses to information submitted by it during the the public consultation can be hearing, nor did the HCC take into submitted until 12 February 2016. The account the fundamental developments Commission will carefully review all that have taken place in the market of input before deciding whether and to beer during the past years, such as the what extent it should take further fact that the market share of Athenian action. To read the full press release of Brewery has fallen from 73% in 2000 to the European Commission (IP-15- approximately 50% today. To read the 5998) click here. full press release of the HCC click here, to read the full text of decision No. 590/2014 of the HCC click here, and to read the relevant press release of Athenian Brewery S.A., click here.

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Greece: HCC issued its report of Audible for sale in Apple's download activities for the year 2014 shop iTunes Store. Audible is a leading supplier of audiobooks in Germany and On 02.11.2015, the HCC issued its specialises in audiobook downloads report of activities for 2014. To read which can be accessed both from the report of activities click here. Audible.de as well as from the Amazon trading platform. In addition, Audible is France: the Autorité de la concurrence one of the largest producers of fined two anticompetitive agreements in audiobooks in Germany and Europe. the delivery service industry for a total With its iTunes Store Apple operates amount of 672.3 million euros one of the largest digital media trading platforms which in addition to music, On 15.12.2015 the Autorité principally videos and apps offers eBooks and fined 20 delivery service companies for audiobooks for download. To read the coordinating on annual price increases full press release of the that they charged their respective Bundeskartellamt click here. clients. This information sharing process, which occurred between September 2004 and September 2010, Mergers mainly took place during meetings held within the framework of a professional The European Commission cleared trade union body (TLF) which has also acquisition of Swissport by HNA been fined. The following companies Group were involved in the agreement: Alloin, BMVirolle, Chronopost, Exapaq (now The European Commission approved known as DPD France), Ciblex, under the EU Merger Regulation the Dachser France, DHL Express France, acquisition of the Swissport group of FedEx Express France, Gefco, Geodis, companies by HNA Group Co., Ltd., a GLS France, Heppner, Lambert et Chinese conglomerate. Swissport is a Valette, XP France, Norbert major provider of airport ground Dentressangle Distribution, handling, cargo handling, and related Normatrans, Schenker-Joyau (now ground handling services, to airlines in known as Schenker France), TNT Europe and abroad and HNA Group Express France, Transports Henri manages several airlines active in the Ducros, Ziegler France. To read the full European Economic Area (EEA) and press release of the Autorité click here. other aviation related enterprises. The Commission concluded that the proposed acquisition would raise no Germany: Bundeskartellamt opened competition concerns because the proceedings against Audible/Amazon companies' activities do not overlap. and Apple Moreover, the merged entity would not be able to shut out suppliers of ground The Bundeskartellamt initiated handling, cargo handling or offline administrative proceedings against the cargo handling services competing with Amazon subsidiary Audible.com and Swissport, given that HNA Group has a Apple Computer Inc. The companies limited share in the demand for such have a long-term agreement on the services. The transaction was examined purchase of audiobooks by Apple from under the normal merger review

November-December 2015 Page 5 C&RR, Issue 2015/5 procedure. To read the relevant press the mining and refining industry. The release of the European Commission Commission had concerns that the click here. merger would eliminate significant competition in the market for The European Commission cleared phosphor-based solvent extractants. joint venture of Michelin and Fives The decision is conditional on Solvay's divestment of its activities in phosphor- The European Commission approved based solvent extraction, used to under the EU Merger Regulation the separate cobalt from nickel. To read creation of a joint venture by the the full press release of the European Michelin group and the Fives group, Commission (IP-15-6236) click here. both of France. Michelin manufactures and distributes tyres through retail The European Commission cleared stores and online networks. Fives is an creation of DES by BMW and industrial engineering group which Viessmann designs and supplies machines, process equipment and production lines. The The European Commission approved joint venture will develop and produce under the EU Merger Regulation a joint additive manufacturing machines (more venture between BMW and commonly known as 3D printers) as Viessmann, both of Germany. BMW is well as related services. The a German stock-listed automobile, Commission concluded that the motorcycle and engine manufacturing proposed transaction would raise no company. Viessmann is an international competition concerns as it would heating systems manufacturer. The joint increase the number of competitors by venture will operate under the name of creating a new player in additive DES, based in Germany and will offer manufacturing in the European energy optimisation services to Economic Area (EEA). The operation companies. The Commission was examined under the simplified concluded that the proposed acquisition merger procedure. To read the relevant would raise no competition concerns press release of the European because the companies' activities Commission click here. overlap only marginally. Moreover, they will be unable to shut out customers or The European Commission approved suppliers because of the companies' Solvay's acquisition of Cytec, subject to modest overall market shares and the conditions presence of a multitude of competitors on the various markets on which BMW The European Commission approved and Viessmann are active. The under the EU Merger Regulation the transaction was examined under the proposed acquisition of Cytec by normal merger review procedure. To Solvay. Cytec manufactures and read the relevant press release of the supplies chemicals for the mining European Commission click here. industry and composite materials and adhesives for the aerospace and The European Commission cleared the automotive industries. Solvay acquisition of Autodis by Bain Capital manufactures a wide range of chemicals and plastics. Both parties are present in The European Commission approved the business for specialty chemicals for under the EU Merger Regulation the

November-December 2015 Page 6 C&RR, Issue 2015/5 acquisition of Autodis Group SAS of and distribute steel civil engineering France by Bain Capital Investors of the products, steel construction products United States. Autodis is a distributor of and other steel construction material aftermarket spare parts for light vehicles outside of the European Economic and trucks to the independent Area (EEA). The Commission aftermarket in France and Poland. Bain concluded that the proposed acquisition Capital is a private equity firm that would raise no competition concerns invests, through its family of funds, in because the joint venture will have no companies across most industries, or negligible activities within the EEA. including information technology, The transaction was examined under healthcare, retail and consumer the simplified merger review procedure. products. The Commission concluded To read the relevant press release of that the proposed acquisition would not the European Commission click here. raise competition concerns, because none of Bain Capital's portfolio The European Commission cleared companies are direct competitors of acquisition of joint control over four Autodis. Some of Bain Capital's Coca-Cola bottlers by The Coca-Cola portfolio companies are active on Company and COBEGA markets related to the one on which Autodis is active. However, their The European Commission approved market shares are limited and a under the EU Merger Regulation the significant number of stronger acquisition of joint control over Coca- competitors are present in these Cola European Partners Plc. (‘CCEP’) markets. The transaction was examined of the UK by The Coca-Cola Company under the simplified merger review (‘TCCC’) of the US and Cobega, S.A. procedure. To read the relevant press of Spain. TCCC is a brand owner, release of the European Commission trademark licensor and producer of soft click here. drink concentrates, syrups, fountain soft drink syrup and finished beverages. It The European Commission issued its sells its products to bottlers. Cobega is November 2015 Merger Brief active in bottling and distributing beverages. CCEP will bring together To read the full Merger Brief of the four existing Coca-Cola bottlers active European Commission (Issue 3/2015 – in Germany, Belgium, France, United November) click here. Kingdom, Luxembourg, the Netherlands, Norway, Sweden, Spain, The European Commission cleared Portugal, Andorra and Iceland. TCCC joint venture between Marubeni-Itochu, already controls one of the four Itochu Corporation and Sumitomo bottlers, Coca-Cola Corporation in steel civil engineering Erfrischungsgetränke AG. Cobega products already controls two of the bottlers, Coca-Cola Iberian Partners S.A. and The European Commission approved Vífilfell. The Commission concluded under the EU Merger Regulation the that the proposed acquisition raises no creation of a joint venture by Marubeni- competition concerns, as the activities Itochu Steel Inc., Itochu Corporation of the bottlers do not overlap and Sumitomo Corporation, all of geographically and customers currently Japan. The joint venture will produce using the Coca-Cola bottlers would

November-December 2015 Page 7 C&RR, Issue 2015/5 continue to have sufficient alternative Greece: The HCC cleared the choices. The transaction was examined acquisition of Dias Aquaculture S.A. by under the normal merger review Selonda Aquaculture S.A. on the basis procedure. To read the relevant press of a consolidation agreement in release of the European Commission accordance with Arts 99 et seq. of the click here. Bankruptcy Code

The European Commission cleared By its Decision No. 619/2015, the acquisition of joint control of Bonus- Hellenic Competition Commission Pensionskassen by Generali and Zurich (HCC) cleared the notified acquisition of Dias Aquaculture S.A. by Selonda The European Commission approved Aquaculture S.A., following a under the EU Merger Regulation the consolidation agreement of 30.4.2015 acquisition of joint control over in accordance with Articles. 99 et seq. Bonus-Pensionskassen of the Bankruptcy Code (Law Aktiengesellschaft by Generali Holding 3588/2007, as amended). Vienna AG and Zurich Versicherungs- According to the decision, the notified Aktiengesellschaft, all of Austria. The transaction does not raise serious transaction also includes Bonus- doubts as to its compatibility with Vorsorgekasse Aktiengesellschaft of merger control rules in the relevant Austria, that offers services in Austria markets concerned by the together with Bonus-Pensionskassen concentration (aquaculture sector). To Aktiengesellschaft. Generali Holding read the full press release of the HCC Vienna belongs to the Assicurazioni click here. Generali S.p.A. group of companies of Italy and Zurich Versicherungs State Aid Aktiengesellschaft belongs to the Zurich insurance group of Switzerland. The CJEU: Preliminary ruling on state aid companies involved in the transaction rules in Case C-505/14 provide insurance, financial and corporate benefit/ pension fund services On 11.11.2015, the Court of Justice of in Austria. The Commission concluded the European Union (CJEU) issued a that the proposed acquisition would preliminary ruling in Case C-505/14 raise no competition concerns given the (Request for a preliminary ruling from companies' moderate combined market the Landgericht Münster (Germany) positions resulting from the transaction lodged on 12 November 2014 — and the presence of strong players Klausner Holz Niedersachsen GmbH v providing corporate benefit and Land Nordrhein-Westfalen). The main pension fund services in Austria. The dispute concerns a German civil law transaction was examined under the contract regarding the supply of wood simplified merger review procedure. from the Land of North-Rhine- To read the relevant press release of Westphalia to the company Klausner the European Commission click here. Holz. Klausner Holz brought a damage claim before the Regional Court of Münster against the Land, who had ceased to supply wood under the contract terms, claiming that this was contrary to EU law because it involved

November-December 2015 Page 8 C&RR, Issue 2015/5 illegal state aid. The Regional Court of of HSH Nordbank (Case T-499/12 Münster held that the contract was not HSH Investment Holdings Coinvest-C concluded on market terms and and HSH Investment Holdings FSO v provided an advantage to Klausner Commission) and therefore upheld the Holz. The Court held that, as a Commission decision of 2011 consequence, the contract indeed authorising, under certain conditions, involved state aid and that this aid had rescue measures in respect of that bank. been granted before the Commission HSH Nordbank, majority-owned by the had taken a decision in the matter, in regional states of Schleswig-Holstein breach of the standstill obligation. The and Hamburg, turned to its owners contract would therefore be null and after risky assets turned sour in 2008 void. However, in a separate dispute, and it got hit by the slump in global the Higher Regional Court of Hamm trade in the wake of the financial crisis. had previously declared the contract The bank benefited from a 3 billion valid in a 2nd instance declaratory euro recapitalisation, a 10 billion euro ruling. No state aid arguments had been general guarantee underwritten by the raised before that court and the ruling regional governments and a 17 billion did not consider such aspects. The euro liquidity guarantee granted by the declaratory judgment had become German special fund for financial definitive in the German legal order market stability. The Commission and can, in principle, not be challenged cleared the measures under certain anymore (res judicata). The Regional conditions in 2011. HSH agreed to a Court of Münster considered that it restructuring deal with the Commission, could not rule against the declaratory which will allow it to offload assets judgment and referred a question to the worth 6.2 billion euros -- mainly non- CJEU. The CJEU held, in line with performing ship loans -- from the bank's previous case law, that national courts balance sheet to a run-down vehicle set must do whatever lies in their up by its owners. To read the full press jurisdiction to ensure that EU law is release of the GC (No. 136/15) click fully effective. This may include setting here. aside the principle of res judicata where application of that principle would General Court judgment in joined cases make it impossible or excessively T-233/11 and T-262/11: State aid for difficult to exercise EU rights. To read Greek mining company Ellinikos the preliminary ruling of the CJEU in Xrysos Case C-505/14 click here.

The General Court of the European On 09.12.2015 the GC ruled on actions Union dismissed the action brought by for annulment of a Commission two minority shareholders of HSH decision of February 2011, ordering Nordbank and therefore upheld the Greece to recover incompatible aid Commission decision of 2011 from the mining company Ellinikos authorising, under certain conditions, Xrysos. Both, the company and Greece rescue measures in respect of that bank appealed the decision. The GC dismissed the appeals and entirely The General Court of the European upheld the Commission's findings. The Union (GC) dismissed the action Court confirmed in particular that brought by two minority shareholders national authorities must sell State-

November-December 2015 Page 9 C&RR, Issue 2015/5 owned assets on terms that a private measures already implemented as part player operating under market of the bankss existing restructuring plan conditions would have accepted. This of July 2014, in addition to those requires the national authorities to sell envisaged in the amended plan, will such assets through open, transparent enable Piraeus Bank and the National and non-discriminatory sales Bank of Greece to ensure lending to procedures or on the basis of valuation the Greek economy in line with EU reports. To read the full judgment of state aid rules, in particular the 2013 the GC in joined cases T-233/11 and T- Banking Communication, and the Bank 262/11 click here. Recovery and Resolution Directive. Piraeus Bank is the largest lender to The General Court annulled the Greek companies and households, Commission’s decision finding that the while National Bank of Greece is one ‘Spanish tax lease system’ was illegal of the largest banks in Greece. As State aid regards Eurobank and Alpha Bank, On December 17, 2015 the GC issued The Commission found their amended its decision on the ‘Spanish tax lease restructuring plans to be in line with EU system’ (STLS) in joined cases T- state aid rules. It concluded that the 515/13 (Spain v Commission), and T- measures already implemented as part 719/13 (Lico Leasing SA and Pequeños of the two banks' existing restructuring y Medianos Astilleros Sociedad de plans, in addition to those envisaged in Reconversión SA v Commission). The the amended plans, will enable Alpha STLS was a shipbuilding financing Bank and Eurobank to return to arrangement (that is no longer in force) viability in line with EU state aid rules. that included Spanish tax relief for the To read the full press release of the investors that provided the finance. The European Commission (IP-15-6193) GC annulled the decision of the concerning Piraeus Bank click here. To European Commission that had read the full press release of the qualified the STLS as state aid. To European Commission (IP-15-6255) read the full press release of the GC concerning the National Bank of (No. 150/15) click here. Greece click here. To read the full press release of the European The European Commission approved Commission (IP-15-6184) concerning aid for Piraeus Bank and National Alpha Bank and Eurobank click here. Bank of Greece on the basis of an amended restructuring plan and The European Commission adopted amended restructuring plans for Alpha notification procedures following State Bank and Eurobank aid modernization package

In the context of the third economic The European Commission adopted a adjustment program for Greece, the new state aid Implementing Regulation. European Commission approved In the context of the State Aid additional state aid of €2.72 billion to Modernisation (SAM) initiative, State Greek Piraeus Bank and €2.71 billion aid guidelines and frameworks have to National Bank of Greece under EU been modified. The Commission state aid rules, on the basis of an therefore updated certain procedural amended restructuring plan. The rules set out in the Implementation Commission concluded that the Regulation in order to align

November-December 2015 Page 10 C&RR, Issue 2015/5 notifications of planned state aid countries is to avoid double taxation – measures submitted by Member States not to justify double non-taxation." To with the new rules. The new read the full press release of the Implementing Regulation contains European Commission (IP-15-6221) revised notification forms and click here. information sheets to be completed by Member States. It allows the The European Commission approved Commission to collect all the necessary additional aid for Cypriot cooperative information for conducting a sound banks on the basis of an amended assessment. The new Implementing restructuring plan Regulation also provides further guidance to Member States on how to The European Commission approved comply with transparency requirements additional state aid of €175 million in introduced by SAM. In particular, it favour of the Cooperative Central Bank includes which information Member Ltd. in Cyprus and its subsidiaries in States should publish about aid line with EU state aid rules. The measures above a certain threshold. To Commission concluded in particular read the relevant press release of the that the additional restructuring European Commission click here. measures that the bank committed to implement will ensure that the bank The European Commission opened becomes viable in the long-term whilst formal investigation into Luxembourg's distortions of competition will be tax treatment of McDonald's minimised. To read the full press release of the European Commission The European Commission opened a (IP-15-6365) click here. formal probe into Luxembourg's tax treatment of McDonald's. Its The European Commission approved preliminary view is that a tax ruling prolongation of Greek bank guarantee granted by Luxembourg may have scheme granted McDonald's a favourable tax treatment in breach of EU State aid The European Commission found that rules. In particular, the Commission the prolongation of the Greek will assess whether Luxembourg guarantee scheme for credit institutions authorities selectively derogated from until 30 June 2016 was in line with EU the provisions of their national tax law state aid rules. In the recent past, the and the Luxembourg-US Double Greek banks mainly use the State Taxation Treaty and thereby gave guarantees on own bonds to create the McDonald's an advantage not available collateral necessary to receive liquidity to other companies in a comparable assistance from the Bank of Greece. factual and legal situation. The liquidity situation of the Greek Commissioner Margrethe Vestager, in banks, while still severely stressed charge of competition policy, stated: "A following the deposits outflows which tax ruling that agrees to McDonald's took place between December 2014 paying no tax on their European and July 2015, is gradually improving. royalties either in Luxembourg or in the In this context, the Commission US has to be looked at very carefully concluded that the 6 month under EU state aid rules. The purpose prolongation of the guarantee scheme is of Double Taxation treaties between in line with the rules on state aid to

November-December 2015 Page 11 C&RR, Issue 2015/5 banks during the crisis, in particular deposits reinforces the liquidity position because the prolonged measure of NBG, and hence is not contrary to is targeted, proportionate and limited in the amended restructuring plan of time and scope. The Greek guarantee National Bank of Greece approved on scheme was initially approved in 4 December 2015. To read the full November 2008. The authorisation of statement of the European Commission the scheme was prolonged several (STATEMENT/15/6372) click here. times, last time in June 2015 until end December 2015. To read the relevant The European Commission approved press release of the European State financing for Poste Italiane's Commission click here. universal service obligation

The European Commission found the The European Commission concluded compensation granted by Italy to Poste that the resolution of Greek Italiane to fulfil its public service Cooperative Bank of Peloponnese mission (so-called "universal service involves no aid obligation") during the periods 2012- 2015 and 2016-2019 to be in line with The European Commission found that EU state aid rules. The Commission's resolution support for Cooperative assessment showed that the Bank of Peloponnese does not involve compensation granted to Poste Italiane State aid within the meaning of the EU is based on a robust and conservative rules. The Bank of Greece decided to methodology, which ensures that it will put the small cooperative bank (with not exceed the cost of the public service less than 0.1% market share in Greece) mission. To read the full press release into resolution because it had a capital of the European Commission (IP-15- shortfall and did not succeed in raising 6250) click here. new capital from private investors. Under the resolution plan, the existing entity will be put into liquidation, The European Commission approved including all its activities except financing of Polish Post's universal deposits. All deposits of Cooperative service obligation via a compensation Bank of Peloponnese will be fund transferred to National Bank of Greece (NBG), which acquired at market value The European Commission found the the deposits in a bidding process. compensation granted by Poland to Depositors therefore remain fully Polish Post for delivering universal protected. The transfer of the deposits postal services from 2013 to 2015 to be will be financed by the Greek in line with EU state aid rules. In Resolution Fund. The Commission particular, the Commission approved found that the support provided by the the measure because the compensation Greek Resolution Fund does not paid to Polish Post is limited to the constitute aid because the deposits of additional costs it faces to fulfil its Cooperative Bank of Peloponnese are public service mission (so-called transferred at market value and the rest "universal service obligation"). of the bank is liquidated without any Moreover, the design of the mechanism State aid. The Commission also to finance the compensation does not observed that the acquisition of the lead to a significant distortion of

November-December 2015 Page 12 C&RR, Issue 2015/5 competition in the Polish postal market. Energy To read the full press release of the European Commission (IP-15-6176) click here. The European Commission opened in- depth investigations into French plans to remunerate electricity capacity The European Commission ordered Estonia to recover incompatible aid The European Commission opened from national air carrier Estonian Air two separate in-depth investigations to assess whether French plans for a Following an in-depth investigation, the country-wide capacity mechanism and a European Commission concluded that tender for a new gas-fired power plant aid measures by Estonia in favour of in Brittany are in line with EU State aid national flag carrier Estonian Air gave rules. The Commission had concerns the company an undue advantage over that these plans to remunerate its competitors in breach of EU state electricity capacity could, in the case of aid rules. Estonian Air therefore needs the country-wide capacity mechanism, to pay back the state aid already favour certain companies over their received, which according to the competitors and hinder the entry of Commission's information amounts to new players, and in the case of the gas- about €85 million plus interest, and fired power plant in Brittany, support cannot receive an additional €40 only one type of technology or solution. million of restructuring aid. Estonian To read the full press release of the Air has been consistently loss-making European Commission (IP-15-6077) since 2006. The Commission's click here. investigation showed that the aid measures cannot be approved under The European Commission cleared EU state aid rules, because they involve acquisition of E.ON E&P Norge by repeated public support that did not LetterOne enable the company to become viable again and did not limit the distortions of The European Commission approved competition created by the aid. The under the EU Merger Regulation the repeated public support measures have acquisition of E.ON E&P Norge AS of already given the airline a considerable Norway by LetterOne Holding SA of economic advantage that its competitors Luxembourg. LetterOne is focusing on did not have. In order to remedy this investments in the energy and distortion of competition, Estonian Air technology sectors. E.ON E&P Norge now needs to pay back the aid already explores and produces crude oil and received (€84.9 million plus interest) to natural gas in Norway. Both companies Estonian taxpayers. To read the full are active in the markets for the press release of the European exploration and the upstream wholesale Commission (IP-15-6023) click here. supply of crude oil and natural gas. The Commission concluded that the proposed acquisition would raise no competition concerns given the companies' moderate positions on all relevant markets and the presence of a number of strong competitors. The

November-December 2015 Page 13 C&RR, Issue 2015/5 transaction was examined under the wholesale electricity market. The simplified merger review procedure. To Commission had concerns that BEH read the relevant press release of the may have abused its dominant position European Commission click here. on the market for the wholesale supply of electricity at non-regulated prices. The European Commission opened BEH has offered commitments that will formal investigation in the biofuels make it easier to trade electricity, sector concerning ethanol benchmarks improve price transparency and help connecting Bulgarian wholesale The European Commission opened a electricity market with neighbouring formal antitrust investigation to countries. To read the full press release scrutinise whether three ethanol of the European Commission (IP-15- producers have, in breach of EU 6289) click here. antitrust rules, manipulated ethanol benchmarks published by a price The European Commission cleared reporting agency. The companies acquisition of joint control of GASAG concerned are Abengoa S.A. of Spain, by Vattenfall and ENGIE Alcogroup SA of Belgium and Lantmännen ek för of Sweden, together The European Commission approved with their relevant subsidiaries. They under the EU Merger Regulation the produce, distribute and trade ethanol. acquisition of joint control over Commissioner Margrethe Vestager, in GASAG of Germany by Vattenfall of charge of competition policy, stated: Sweden and ENGIE of France. "Competitive biofuels markets are GASAG is mainly active in the sale and crucial to promote cleaner transport distribution of natural gas in Berlin and and to cut greenhouse gas emissions. some parts of Eastern Germany. This is an important element of the Vattenfall is an international energy Commission's ambitious strategy to company which supplies electricity and limit greenhouse gas emissions and to district heating in Berlin. ENGIE boost renewable energies." The supplies natural gas, electricity and Commission's investigation started with energy services internationally and unannounced inspections carried out in offers district heating in several cities in May 2013. Further inspections were Germany. The investigation focused on carried out in October 2014 and March the effects of the transaction on the 2015. To read the full press release of district heating market in Berlin. The the European Commission (IP-15- Commission found that customers are 6259) click here. unlikely to consider district heating and contract heating solutions (e.g. gas The European Commission accepted based) as close alternatives. The commitments by Bulgarian Energy Commission concluded that the Holding to open up Bulgarian transaction would not raise competition wholesale electricity market concerns. Additionally, the Commission concluded that the The European Commission adopted a transaction would have a limited impact decision that renders legally binding the on the market structure given the small commitments offered by Bulgarian overlaps between the companies' Energy Holding (BEH) to end activities. The transaction was examined competition restrictions on Bulgaria's under the normal merger review

November-December 2015 Page 14 C&RR, Issue 2015/5 procedure. To read the relevant press Greece: RAE published the results of release of the European Commission the public consultation on the click here. Methodology for the Assessment of Energy Consumption, Energy Billing Greece: The Decision No. and the Representation Percentage of ΑΠΕΗΛ/Γ/Φ1/οικ. 184898 of the Load Representatives of the Non- Minister of the Environment and Interconnected Islands, and on the Energy was published in the Methodology for the Calculation of Government Gazette regarding the Guarantees of Representatives of the Greek Scheme of interruptibility Load of Non-Interconnected Islands, during the transitional stage of the Following the approval of the Greek implementation of the Management Scheme of interruptibility by the Code for the Non-Interconnected European Commission on 15.10.2014 Islands (as reported in our C&RR Report Issue No. 2014/4), the relevant decision No. To read the full press release of RAE, ΑΠΕΗΛ/Γ/Φ1/οικ. 184898 of the click here. Minister of the Environment and Energy was published in the Greece: RAE announced the 2nd public Government Gazette (GG/ B’ consultation within the context of 2861/28.12.2014). Interruptibility is a establishing the Management Code of service provided by big energy the Greek Electricity Distribution consumers which may reduce their Network energy demand upon relevant request of the system operator. To read the Within the context of establishing the relevant ministerial decision click here, Management Code of the Greek and to read the decision of the Electricity Distribution Network, and European Commission No. C(2014) following the 1st public consultation on 7374 final/15.10.2014, click here. the Draft of the Code, which was submitted to the Hellenic Electricity Greece: RAE published the results of Distribution Network Operator its Public Consultation on the (DEDDIE) in July of 2014, RAE management of due and payable debts announced on 3.12.2015 the of clients of suppliers of electricity and commencement of the 2nd public the reorganization of the market consultation on the Draft of the Code. Interested parties may take part in the To read the full press release of the consultation by submitting their Regulatory Authority for Energy (RAE) opinions electronically at the website click here. [email protected] or by mail until Monday, 1 February 2016. To read the full press release of RAE click here.

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Greece: RAE announced new charges Electronic Communications for the use of the Electricity Transmission System and the Electricity Distribution System, as well as the new The CJEU held that an increase in charges for the Special Duty for the telecommunications charges in Reduction of Greenhouse Gas accordance with a consumer price Emissions index does not allow subscribers to withdraw from their contract RAE announced on 07.12.2015, the On 26.11.2015, with its judgment in new charges for the use of the case C-326/14 (Verein für Electricity Transmission System and the Konsumenteninformation v A1 Electricity Distribution System, as well Telekom Austria AG), the Court of as the new charges for the Special Duty Justice of the European Union (CJEU) for the Reduction of Greenhouse Gas held that There is no modification to Emissions, which shall apply for 2016. the conditions of a contract where To read the full press release of RAE standard terms and conditions provide click here. for the possibility of increasing charges

in accordance with an objective Greece: Public Consultation of RAE for consumer price index compiled by a the adoption of a Management Code public institution. According to the for the Natural Gas Distribution Court, the EU legislature recognised Network that undertakings providing electronic

communication services may have a On 10.12.2015, RAE announced the legitimate interest in being able to adjust commencement of a public the prices and charges for their services. consultation on drafts of the To read the full press release of the Management Code for the Natural Gas CJEU (No. 142/15) click here. Distribution Network, as they were submitted to RAE by the respective The General Court of the European Distribution Network Operators. The Union dismissed action for annullment consultation was set to last until Friday, of Commission Decision C(2011) 4378 15.01.2016, but, according to a later (Orange Polska vs. Commission) announcement of RAE, it shall last until Friday, January 26 2016. To read the original press release of RAE click here, On 17 December 2015, with its and to read the announcement of RAE judgment in case T-486/11 (Orange concerning the postponement click Polska vs. Commission), the General here. Court of the European Union (GC) dismissed an action for annulment of Commission Decision C(2011) 4378 regarding the abuse of a dominant position in the Polish telecommunication wholesale Bitstream access (BSA) market and the Polish wholesale Local Loop Unbundling (LLU) market by refusing to give access to its network and to supply BSA and LLU wholesale products. To read the

November-December 2015 Page 16 C&RR, Issue 2015/5 full text of the judgment of the GC in None of the studies presented by the case T-486/11 click here. Spanish authorities provided sufficient evidence that terrestrial platforms were superior to satellite platforms. To read The GC ordered the recovery of State the full press release of the GC (No. aid granted by Spain to the operators of 141/15) click here. the terrestrial television platform The European Commission approved On 26.11.2015, with its judgment in acquisition of Prinovis by Bertelsmann cases T-461/13, T-462/13, T-463/13, T- 464/13, T-465/13, T-487/13 and T- The European Commission approved 541/13, the GC dismissed seven actions under the EU Merger Regulation the for annulment brought against a acquisition of sole control over Prinovis Commission decision of June 2013. Ltd. & Co. KG and Prinovis Ltd. The 2013 decision had concluded that (together "Prinovis"), both of Germany, public funding granted by Spain to by Bertelsmann SE & Co. KGaA, also facilitate the transition from analogue to of Germany. Bertelsmann is an digital television in remote and less international media company active in urbanised areas procured a selective television, radio, book publishing, advantage to terrestrial platform newspapers and magazines, music and operators over their competitors using communications services. Prinovis other transmission technologies, in provides high-volume illustration breach of EU State aid rules. The printing and related services and is General Court confirmed that the currently jointly controlled by Spanish measure favored digital Bertelsmann and Axel Springer SE. terrestrial technology over other The companies' activities overlap in the possible technologies (cable, satellite, provision of high-volume illustration fibre), in violation of the principle of services in the European Economic technological neutrality. Spain, the Area (EEA), notably in Germany. The Basque Country/Itelazpi, Galicia and Commission concluded that the Retegal, Catalonia/CTTI, Navarra and proposed acquisition would raise no Abertis Telecom/Retevisión brought competition concerns, in particular actions for annulment of the because of the moderate combined Commission's June 2013 decision. The market positions resulting from the GC dismissed the appeals and entirely transaction and the presence of several upheld the Commission's findings. In other competitors on the market. To particular, the Court held that the read the relevant press release of the Commission was right to consider the European Commission click here. measure as State aid in the meaning of the EU rules, as Spain had adduced no Greece: The Hellenic evidence that the DTT operators were Telecommunications and Post entrusted with discharging public Commission (HTPC) published its service obligations. Moreover, the Market Analysis Review for the year Court confirmed that the Commission 2014 was correct in holding that the aid was incompatible with the internal market, To read the Market Analysis Review of in particular as it did not respect the the Hellenic Telecommunications & principle of technological neutrality.

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Post Commission (HTPC) for 2014 systems, used for diabetes care, with click here. Bayer currently distributing the systems manufactured by Panasonic Healthcare. France: the Autorité de la concurrence With the acquisition, Panasonic fined Orange 350 million euros Healthcare will take control of the for having abusively hindered the distribution for its own products. The development of competition in the Commission concluded that the business market since the early 2000s proposed acquisition would raise no competition concerns, in particular After complaints were brought firstly by because there are several other Bouygues Telecom and then by SFR, channels for competitors of Panasonic the Autorité de la concurrence issued Healthcare to reach the market with its decision whereby it fined Orange their products. To read the relevant 350 million euros for having press release of the European implemented four anticompetitive Commission click here. practices on the markets for fixed and mobile telecommunications services The European Commission published provided to the company's business its sixth report on patent settlements in clientele. The Autorité also imposed the pharmaceutical sector injunctions in order to immediately restore fair competition within these The European Commission published markets. Orange has chosen to its sixth monitoring report on patent cooperate with the Autorité de la settlements. The report relates to the 76 concurrence: the company has not patent settlements concluded between challenged the facts or their originator and generic companies in the anticompetitive nature and neither does pharmaceutical sector in 2014. The it challenge the outcome of the case, in total of 76 is far below the high terms of both the fine and the numbers of the two previous years (183 injunctions aimed at immediately in 2012 and 146 in 2013), and is closer restoring a competitive functioning of to the levels at the beginning of the the market. To read the full press monitoring period (2009-2010). release of the Autorité click here. However, it is still much higher than the annual average of 24 during the period Pharmaceuticals between 2000 and 2008. At the same time, the number of settlements that The European Commission cleared might attract competition law scrutiny acquisition of Bayer's diabetes care remains at a low level. This shows the business by Panasonic Healthcare industry's continued ability to effectively settle patent disputes in ways that raise The European Commission approved no antitrust concerns. To read the under the EU Merger Regulation the relevant press release of the European acquisition of Bayer's diabetes care Commission click here. business of Germany by Panasonic Healthcare of Japan. Panasonic Healthcare is ultimately controlled by KKR of the US, a global investment firm. Both companies are active in the supply of self-monitoring blood glucose

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The European Commission cleared Deutsche Lufthansa and Others, T- Novartis' acquisition of rights on auto- 48/11 British Airways, T-56/11 SAS immune indications of GSK's drug Cargo Group and Others, T-62/11 Air ofatumumab France-KLM, T-63/11 Société Air France and T-67/11 Martinair Holland The European Commission approved v. Commission, the General Court of under the EU Merger Regulation the the European Union (GC) overturned acquisition of the rights to the the decision of the European autoimmune indications of the UK Commission to fine 11 airlines a total of pharma company GlaxoSmithKline's €790 million in connection with an air drug ofatumumab by Novartis of cargo price-fixing cartel. The GC Switzerland. Novartis already owns the overruled the Commission’s decision to rights to the oncology indications of fine the airlines because the court found ofatumumab, and is acquiring the rights an inconsistency in the description of for the development and marketing of the conspiracy between different aspects the drug in autoimmune indications, of the decision. Specifically, the court such as multiple sclerosis. The ruled that the decision grounds, the Commission concluded that the section that summarized the proposed acquisition would raise no Commission’s factual findings, charged competition concerns. While Novartis the airlines with participating in a single owns treatments already on the market continuous conspiracy, but the and in development to treat operative part of the decision, the autoimmune diseases, a number of section that identified exactly which other strong competing treatments party was being held liable for what (both marketed and in development) conduct, referred to “either four would remain available following the separate single and continuous transaction. The transaction was infringements or just one single and examined under the normal merger continuous infringement.” To read the review procedure. To read the relevant full press release of the GC (No. press release of the European 147/15) click here. Commission click here. The General Court of the European Transport Union confirmed that the State aid in the sum of € 503 million granted by The General Court of the European France to Sernam and conditionally Union annulled the decision by which approved by the Commission in an the Commission imposed fines on earlier decision was wrongfully several airlines for their participation in implemented a cartel in the airfreight market With its judgment dated 17.12.2015 in In its judgments of 16.12.2015 in Cases case T-242/12 (Société nationale des T-9/11 Air Canada, T-28/11 chemins de fer v Commission), the Koninklijke Luchtvaart Maatschappij, General Court of the European Union T-36/11 Japan Airlines, T-38/11 Cathay (GC) confirmed that the State aid in the Pacific Airways,T-39/11 Cargolux sum of € 503 million granted by France Airlines International, T-40/11 Latam to Sernam and conditionally approved Airlines Group and Others, T-43/11 by the Commission in an earlier Singapore Airlines and Others, T-46/11 decision was wrongfully implemented

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In 2001, the Commission conditionally economic continuity between Sernam gave initial authorization for and those companies. SNCF brought restructuring aid of € 503 million in an action before the GC, seeking the favour of Sernam, a private delivery and annulment of the decision of 9 March express package and palette transport 2012. company, then wholly owned by SNCF (‘the Sernam 1 decision’). Finding that In its judgment dated 17.12.2015, the the conditions attached to that decision GC dismissed SNCF’s action, thus had not been satisfied and that new, confirming that a total of more than € incompatible aid of € 41 million had 642 million (excluding interest) of been granted, in 2004 the Commission incompatible State aid must be adopted a second decision (‘the Sernam reimbursed by la Financière Sernam 2 decision’).In the Sernam 2 decision, and its subsidiaries. To read the full the Commission required the recovery press release (No. 151/15) of the GC of the € 41 million declared click here. incompatible and confirmed, while laying down new conditions for The European Commission invited compatibility, that the aid approved Greece to better target its "tonnage tax" under the Sernam 1 decision of € 503 and related support measures in million was compatible with the internal maritime sector market. The Sernam 2 decision provided, inter alia, for a possible The European Commission sent to choice between two conditions, which Greece a set of proposals to ensure that were, in essence, the following: state support to the maritime sector in within a set period, Sernam was to Greece complies with EU state aid withdraw from the road transport rules. In particular, the Commission market; found that current provisions may breach EU state aid rules by allowing alternatively, ‘[i]n the event that Sernam [sold] its assets en bloc by 30 shareholders of shipping companies to June 2005 at market price, through a benefit from favourable tax treatment transparent and open procedure, to a that should be reserved for maritime company that [had] no legal link with transport providers. Similarly, the SNCF, the conditions [of withdrawal Commission was concerned that favourable tax treatment is also from the road transport market][would] extended to maritime sector not be applicable’. intermediaries and operators of ships, France stated to the Commission that it which do not provide maritime had opted to sell Sernam’s assets en transport services. EU state aid rules bloc, the purchaser being la Financière establish common rules on how Sernam, a company created by the Member States can support maritime former management team of Sernam. transport providers, without unduly By decision of 9 March 2012, the distorting competition in the Single Commission concluded that all the aid Market. In particular, the Maritime which Sernam had received, namely a Guidelines enable Member States to tax total of more than € 642 million shipping companies on the basis of the (excluding interest), should be tonnage of the fleet (i.e. based on size reimbursed by la Financière Sernam of shipping fleet) rather than the actual and its subsidiaries because of the profits of the company. The

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Commission had concerns that the Trans-Adriatic Pipeline (TAP), the first Greek tonnage tax system is not well gas for which in 2020 should be the gas targeted. To read the full press release from Azerbaijani oil condensate field of the European Commission (IP-15- Shah Deniz.Snam has 20% in TAP, 6384) click here. Fluxys - 19%, and ENAGAS - 16%.

Greece signed 1.2 bln euro airport deal News of the Markets with Germany's Fraport and its Greek Partner Copelouzos Group

Greece: The President of RAE met The Greek government signed its first with the Ambassador of the Republic of big privatisation deal with German Azerbaijan and the CEO of Socar airport operator Fraport, awarding it a Energy Greece 1.2 billion euro contract to lease and manage 14 regional airports. Fraport The President of the Regulatory and its Greek partner, Copelouzos Authority for Energy (RAE), Dr. Group, will lease and manage 14 Nikolaos Boulaksis, met with the provincial airports in popular tourist Ambassador of the Republic of islands, including Corfu and Santorini, Azerbaijan in Greece, Mr. Rachman for 40 years. It will also invest 330 Moustafagef, and the CEO of Socar million euros by 2020, to upgrade Energy Greece S.A., Mr. Anar facilities. The Fraport-led consortium Mamadov, in order to discuss matters will take over the operations of the concerning the participation of the airports in autumn 2016, when it will company in DESFA S.A., and other also pay the agreed sum, it said in a issues concerning energy policies in statement. In total, it will invest more Southeast Europe. To read the full than 1.4 billion euros over the lease. press release of RAE click here. ELPE, Energean talk cooperation HRADF head: DESFA privatization will finish in 1st quarter of 2016 According to press information, local energy firms Hellenic Petroleum According to press information, the (ELPE) and Energean sat down at the head of the Hellenic Republic Asset same table after Energy Minister Panos Development Fund (HRADF), Stergios Skourletis invited them to discuss a Pitsiorlas, stated on 09.12.2015 that the settlement for the Arta-Preveza privatisation of gas distribution hydrocarbon block in western Greece, company DESFA can be completed in as a ministry committee found the bids the 1st quarter of 2016. "The final by the two companies to be equal. The agreement on the transfer of a main obstacle to their cooperation controlling stake (66%) of the shares of stems from a court battle between the DESFA can be signed in the 1st quarter two energy firms regarding seismic of 2016," he said. Fluxys (Belgium), surveys Energean conducted in the ENAGAS (Spain) and Snam (Italy), Thracian Sea. The two companies are claiming for the 16% stake, have already also at odds over which will undertake signed the necessary confidentiality the role of operator of the disputed agreements," the HRADF head said. Arta-Preveza block, with Energean Three claimants are the shareholders of

November-December 2015 Page 21 C&RR, Issue 2015/5 arguing that it should on the grounds of southeastern Europe through Greece, a possessing the necessary know-how. senior company official said on Wednesday. Greece currently has one National Bank of Greece Sold LNG terminal on an islet off Athens. Finansbank to Qatar National Bank Greek energy firm Copelouzos is SAQ planning to build an offshore LNG terminal near the northern city of National Bank of Greece sold its 99.81 Alexandroupolis. That facility, with an percent stake of Turkey’s Finasbank AS estimated annual capacity of 6.1 billion to Qatar National Bank SAQ , the Gulf cubic metres (bcm), will seek to supply Arab region’s largest bank, for 2.75 gas to southeastern Europe via a natural billion euros. According to Qatar gas pipeline that will cross through National Bank, the transaction will be Greece, the Interconnector Greece- completed in the first half of 2016, after Bulgaria (IGB). all the regulatory approvals. The bank will also pay Finanbank’s 910 million Hellenic Post submitted application dollar debt to the National Bank of before RAE to enter electricity market Greece.

Dow Chemical and DuPont Agree to Hellenic Post submitted an application Megamerger of $130 Billion to RAE in order to enter the electricity market in Greece. Greece’s electricity According to press information, the market is being opened up to merger is expected to close in the competition as main power utility PPC’s second half of 2016, subject to approval overbearing market share must be by regulators and shareholders from reduced to 50 percent by 2020, based both companies. The new mega- on a bailout demand. To read the company will then be split into three relevant press release of RAE click here independent, publicly traded companies encompassing agriculture, DESFA’s 10-year investment plan material sciences, and specialty valued at 2.2bn euros products, according to Dow's news release. The companies will include a According to press information, an leading global pure-play Agriculture investment plan by DESFA, Greece’s company; a leading global pure-play natural gas grid operator, covering a ten- Material Science company; and a year period between 2015 and 2024 leading technology and innovation- and approved by RAE, the Regulatory driven Specialty Products company. Authority for Energy on November 27, includes over 2.2 billion euros worth of Cheniere Energy eyes stake in Greek projects, both well-known and not. The LNG project interests of Azeri energy company Socar, the prospective buyer of a According to information of the press, minority stake in the operator Cheniere Energy, a U.S-based liquefied currrently waiting for the sale’s natural gas (LNG) exporter, is procedure to be finalized, were taken interested in a minority stake in a new into account when the investment plan LNG terminal that will supply gas to was prepared by DESFA’s management. The plan includes a 180

November-December 2015 Page 22 C&RR, Issue 2015/5 million-euro upgrade of an LNG wireless networking. The agreement terminal station in Revythoussa, an islet puts to bed some bitter wrangling in in the Saronic Gulf, close to Athens, courts in Texas, California, the UK, now in progress, and which promises to Germany and Holland as well as before increase the facility’s annual capacity by the ITC. Ericsson had asked for royalty 40 percent once completed. payments of $750 million a year from Apple. It said Apple was infringing 41 Astir Palace sold for 400 million euros patents and asked the ITC to ban sales of iPads and iPhones. The Hellenic Republic Asset Development Fund (HRADF) Pre-agreement signed between confirmed that Jermyn Street Real Veropoulos and METRO for the Estate Fund IV LP signed a new acquisition of the former by the latter agreement to submit an amended special zoning and spatial plan for the According to press information, the development of the Astir Palace Veropoulos supermarket chain Vouliagmeni venue, one of the best concluded a pre-agreement for its known resorts and tourist-related sites acquisition by METRO, which operates in the greater Athens area. The entire the “My Market” stores. The agreement process is expected to be completed has been submitted for approval before within the first half of 2016. To read the Hellenic Competition Commission. the relevant announcement of the HRADF click here. Pfizer and Allergan To Merge, Creating World's Largest Drug Company Cosco the only bidder for Piraeus Port According to press information, According to press information, China’s pharmaceutical giant Pfizer shall merge Cosco Pacific was the only party with Botox maker Allergan for a deal of interested in the acquisition of the 51 $160 billion, one of the biggest percent stake (plus another 15 percent) takeovers in health care industry and of Piraeus Port Authority (OLP). The the biggest too in a tax-saving strategy. Hong Kong-listed firm was the only Pfizer manufactures iconic drugs such party to submit a timely binding offer in as Viagra and Lipitor, which helps to the context of the tender proclaimed in lower cholesterol, even as Allergan 2014 by the state privatization fund. All makes Botox, which is a global sought- signs point to the absence of a second after medication. The new company offer for the stake, which could have will be led by Ian Read, Pfizer's created some competition for the asset Scotland CEO, with Allergan CEO up for sale. Brent Saunders as his deputy.

Ericsson and Apple settle IP disputes, Cretan interconnection plan scaled begin technical collaboration back for stage one

According to press information, Apple According to information of the press, and Ericsson are now to work together IPTO, the Greek power grid operator, to develop 5G technology, video has cut back on the scale of its network traffic management and interconnection plan intended to link

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Crete with the grid serving the wider Athens area and, for the time being, will connect the island as far north as the Peloponnese. The operator is striving to finalize the revised latter project’s details for inclusion in its ten-year plan. The initial plan, offering a capacity of 1,000 MW, would have covered electricity supply needs from the mainland to Crete, while also serving as a channel for the supply of Cretan renewable energy source (RES) production from the island to the wider Athens area. Following the revision, the project will, for its initial stage, be limited to a 2 x 200 MW system connecting the Peloponnese with Crete to cover the island’s electricity needs. The resulting infrastructure will not be able to facilitate delivery of Cretan RES production to the wider Athens area. This will require development of a supplementary project.

PPC: Compliance with L. 4336/2014 concerning the abolition of the 20% discount on High Voltage Tariffs - Approval of new High Voltage Tariffs

According to a resolution of the General Meeting of shareholders of PPC S.A., a volume discount on the competitive capacity and power charges was decided upon. Said proposal concerns the total annual consumption in GWh. To read the relevant press release of the PPC click here.

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