EUROPEAN COMMISSION Brussels, 10.6.2011 ELECTRONIC VERSION ONLY SEC(2011) 690 final Part I COMMISSION STAFF WORKING PAPER Accompanying the REPORT FROM THE COMMISSION on Competition Policy 2010 {COM(2011) 328 final} EN EN TABLE OF CONTENTS I – Instruments............................................................................................................................ 7 A – Follow-up to the implementation of the crisis framework for state-aid.............................. 7 1. Crisis-related support for the financial sector .............................................................. 7 2. Application of the Temporary Framework .................................................................. 8 3. Exit strategy................................................................................................................. 9 4. Contribution of competition policy to the economic adjustment programmes of Greece and Ireland ..................................................................................................... 11 4.1. Greek economic adjustment programme ................................................................... 11 4.2. Irish economic adjustment programme...................................................................... 12 B – Antitrust – Articles 101 and 102 TFEU............................................................................. 13 1. Shaping and applying the rules .................................................................................. 13 1.1. Shaping the rules: review of Block Exemption Regulations ..................................... 13 1.1.1. Block Exemption Regulation on vertical agreements................................................ 13 1.1.2. Block Exemption Regulations on horizontal cooperation agreements ...................... 15 1.1.3. Sectoral Block Exemption Regulations ..................................................................... 17 1.2. Private enforcement of the EU antitrust rules............................................................ 18 1.3. Applying Article 101: Cartels and other agreements and concerted practices .......... 19 1.3.1. Cartels ........................................................................................................................ 19 1.3.2. Other agreements and concerted practices................................................................. 21 1.4. Applying Article 102 TFEU: Abuse of dominant positions ...................................... 21 2. Selected Court cases................................................................................................... 22 2.1. Exclusivity agreements .............................................................................................. 22 2.2. Margin squeeze.......................................................................................................... 23 2.3. Level of fines.............................................................................................................. 24 2.4. Legal professional privilege and in-house lawyers.................................................... 24 2.5. Misuse of intellectual property rights and regulatory procedures.............................. 25 2.6. Lack of sufficient Union interest................................................................................ 26 2.7. Commitments ............................................................................................................. 26 C – Merger control ................................................................................................................... 27 EN 1 EN 1. Shaping and applying the rules .................................................................................. 27 2. Selected Court cases................................................................................................... 29 2.1. Quantitative evidence and econometric studies ......................................................... 29 2.2. Minority shareholdings.............................................................................................. 30 D – State aid control................................................................................................................. 31 1. Shaping and applying the rules .................................................................................. 31 1.1. Horizontal aid............................................................................................................. 33 1.1.1. Regional aid............................................................................................................... 33 1.1.2. Environmental aid and security of electricity supply................................................. 34 1.1.3. Research & Development & Innovation (R&D&I) aid ............................................. 34 1.1.4. Aid to promote risk capital and urban development .................................................. 35 1.2. Sectoral and individual State aid................................................................................ 35 1.2.1. Rescuing and restructuring aid for industry............................................................... 35 1.2.2. Aid to the transport sector.......................................................................................... 36 1.2.3. State aid for Broadband networks.............................................................................. 37 1.2.4. Aid to the coal sector.................................................................................................. 37 1.2.5. Aid to the agricultural sector...................................................................................... 38 1.2.6. Aid for compensating provision of Services of General Economic Interest: Social Housing undertakings................................................................................................. 38 1.3. State aid enforcement by national courts ................................................................... 39 1.4. Ex-post monitoring of State aid measures.................................................................. 40 1.5. Recovery policy......................................................................................................... 40 2. Selected Court cases................................................................................................... 41 2.1. Notion of aid .............................................................................................................. 41 2.2. Compatibility assessment........................................................................................... 43 2.3. Recovery of aid .......................................................................................................... 44 II – Sector Developments......................................................................................................... 45 A – Financial services .............................................................................................................. 45 1. Overview of sector ..................................................................................................... 45 2. Policy developments .................................................................................................. 47 EN 2 EN 2.1. Antitrust enforcement................................................................................................. 47 2.1.1. Antitrust enforcement in the payments services sector.............................................. 47 2.1.2. Securities Trading, Clearing and Settlement (C&S).................................................. 49 2.1.3. Insurance sector.......................................................................................................... 50 2.2. Merger control............................................................................................................ 51 2.3. State aid control: restructuring of financial institutions............................................. 52 B – Energy & Environment...................................................................................................... 58 1. Overview of sector ..................................................................................................... 58 2. Policy developments .................................................................................................. 59 2.1. Antitrust enforcement................................................................................................. 59 2.2. State aid control.......................................................................................................... 61 C – Information, Communication and Media .......................................................................... 64 1. Overview of sector ..................................................................................................... 64 1.1. Telecommunications .................................................................................................. 64 1.2. Information and Communication Technology (ICT)................................................. 66 1.3. Media.......................................................................................................................... 66 2. Policy developments .................................................................................................. 67 2.1. Policy developments in telecommunications sector .................................................. 67 2.1.1. Antitrust enforcement................................................................................................