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London 6th October. Ofgem expresses concerns about lack
of competition in UK energy markets. Ofgem published the initial findings of its Energy
Supply Probe. The UK energy market has six major
suppliers, which the report states is more than any other energy market in the
world. According to the report the 6 largest suppliers are operating
competitively and there was no evidence of cartel activity. Nevertheless, it
finds that in some areas the development of competition needs to be
accelerated, that many consumers are not yet benefiting fully from the
development of a competitive market and that vulnerable groups were disproportionately
affected. It has requested interested parties to make submissions by 31st
December. Ofgem can seek to negotiate reforms with suppliers but if agreement
cannot be reached it can refer the industry to the Competition Commission for a
full investigation.
Dublin 3rd October. Competition Authority approves
brewery merger. The
Competition Authority announced that it had decided that the acquisition by
Heineken of Beamish & Crawford would not result in a substantial lessening
of competition. The acquisition was part of the larger acquisition by Heineken
and Carlsberg of Scottish & Newcastle plc. The EU Commission referred the
Irish part of the transaction to the Competition Authority following a request
by the Authority. The decision is perhaps surprising as the transaction reduces
the number of breweries in Ireland from 3 to 2. The Authority must
publish its reasoning by 3rd November.
Dublin 30th September. First Appeal of Authority
merger decision announced. Kerry Group announced that it is
appealing the decision by the Competition Authority to prohibit the acquisition
by Kerry Foods of Breeo Foods. Both firms are engaged in the supply and
distribution of a range of consumer foods in the Republic of Ireland and the Authority decided that
the transaction would result in a substantial lessening of competition in the
markets for rashers, non-poultry cooked meats and processed cheese in the Republic of Ireland. This is the first appeal
against a decision by the Authority since it assumed responsibility for
deciding merger cases in July 2003. Compecon advised Kerry Foods in the case.
Dublin 30th September. Bank support package to remove
Competition Authority control over bank mergers. The emergency legislation introduced by the
Minister for Finance to help Irish banks through the credit crisis includes
provisions for the Minister for Finance to
take-over the merger control powers of the Competition Authority in the case of
banks and to approve a merger of financial institutions even if it would
otherwise be anti-competitive if the Minister considers that the merger is
necessary to preserve the stability of the financial system and that there
would be a serious threat to the system’s stability if the merger did not proceed.
Luxembourg 25th September. Advocate General advises Court
of Justice to overturn Court of First Instance judgment in France Telecom case. The CFI had upheld a Commission
decision of predatory pricing against France Telecom but the Advocate General
in the case has recommended that the case should be re-considered by the CFI.
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