Brussels 29 November – 3 December 2004
Brussels Monitor
Competition
Article 82
The British Office of Fair Trading (OFT) referred a complaint regarding Apple's Internet music
service iTunes to the European Commission. The OFT decided that the Commission is better
placed to consider the matter as Apple iTunes operates in more than three Member States.
The complaint was lodged by Which?, who alleged that iTunes charged UK customers 20%
more than French and German customers. UK customers were unable to benefit from cheaper
prices on other European iTunes websites, as access to the sites was barred to non-residents.
(Sources: OFT Press Release, 3.12.2004; Europe Information, 6.12.2004)
Merger Control – Acquisition of Gas de Portugal
It has been reported that the Commission intends to block the proposed acquisition of joint
control over Gas de Portugal (GDP), the incumbent gas provider in Portugal, by Electricidade
de Portugal (EDP), the incumbent electricity provider in Portugal, and ENI, an Italian energy
company. The Commission opened an in-depth investigation into the matter in August on the
grounds that the transaction could significantly strengthen EDP's dominant position in the
electricity wholesale and retail markets in Portugal as well as GDP's dominant position in
Portuguese gas markets. A formal decision is due on 7 December 2004.
(Source: FT 6.12.2004, p. 17)
Merger Control – Sony/BMG
Impala, the independent music companies association, formally lodged an appeal before the
European Court of First Instance against the Commission Decision of 19 July that approved
the merger between Sony and Bertelsmann Music Group (BMG).
In Impala's view, the merger reinforces the existing market imbalance in the entertainment
sector. It alleges that the Commission's decision shows manifest errors of law, assessment
and reasoning on collective dominance in the recorded music market, as well as the impact of
the merger on the on-line and publishing markets. The Commission should have carried out
an in-depth investigation of the impact of the merger on European culture, consumer choice
and diversity.
This is the first time that the Commission faces an appeal against one of its merger approvals
in the entertainment industry.
(Source: Europe Information, 3.12.2004)
For further information please contact the Brussels office:
Peter Willis, Franziska Wagner or Andrea Iber on +32 2 289 6060
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Merger Control – Takeover of ContentGuard
On 1 December the Commission has suspended its investigation into the takeover of
ContentGuard by Microsoft and TimeWarner after Thomson, the French technology group,
announced that it would join the deal and acquire a 33 per cent stake in ContentGuard. The
Commission declared that its decision to suspend the investigation had nothing to do with
Thomson joining the deal but aims to give Microsoft and TimeWarner more time to provide
information.
ContentGuard is active in the development of anti-piracy software for the media and
entertainment industry. The Commission suspected that the deal would create or strengthen
Microsoft's dominant position in the digital rights management (DRM) market. The initial
deadline for the decision was 6 January 2005. This deadline will now be extended by the
number of days that pass between the Commission's decision to halt the investigation and the
day the Commission received all information requested.
(Source: FT 2.12.2004, p. 18)
Internal Market
Genetic Engineering
The European Food Safety Agency (EFSA) issued a guidance document for the risk
assessment of genetically-modified (GM) plants and derived food and feed. Before GMOs or
derived products can be sold in the EU they must undergo an approval process involving a
thorough examination of risks to human and animal health and to environmental safety. The
Document issued by the EFSA contains detailed guidelines for applicants wishing to sell
GMOs in the EU. A copy of the document is at:
http://www.efsa.eu.int/science/gmo/gmo_guidance/660_en.html
(Source: Europe Information, 4.12.2004)
Pharmaceuticals
Proposal on Paediatric Medicines
EU Health Ministers discussed the proposal for a Regulation on medicinal products for
paediatric use on a Council meeting on 6 December. The Ministers decided to pass the
proposal on to experts for further examination. No agreement on the proposal is expected
before the second half of 2005.
The main objective of the proposal is to improve child health, while, at the same time,
removing obstacles to the intra-Community trade of paediatric medicinal products. To this aim,
it contains a combination of obligations and incentives, the main obligation being the demand
to provide a paediatric investigation plan as part of the procedure to obtain market
authorisation. Incentives are provided through prolonged exclusive rights or, for off-patent
medicines, the introduction of a new type of marketing authorisation (called PUMA).
(Source: Council Conclusions, 6.12.2004)
Trade
EU/US Trade Talks
EU Trade Commissioner Peter Mandelson and US Trade Representative Bob Zoellick held a
meeting on WTO issues and the dispute over subsidies paid to Boeing and Airbus. On the
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airline subsidy dispute, both Mandelson and Zoellick agreed that they would give themselves a
few weeks to see whether there was any scope for negotiation before asking for the
establishment of a Panel in the framework of the WTO Dispute Settlement Understanding.
(Source: Europe Information, 7.12.2004)