Finland: Enforcement of the Finnish Competition and Consumer Authority 2017-2020 (selected developments) - Concurrences
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Concurrences REVUE DES DROITS DE LA CONCURRENCE | COMPETITION LAW REVIEW Finland: Enforcement of the Finnish Competition and Consumer Authority 2017–2020 (selected developments) International l Concurrences N° 1-2021 www.concurrences.com Beata Mäihäniemi beata.maihaniemi@helsinki.fi Postdoctoral Researcher Law and Digitalization, Legal Tech Lab, Faculty of Law, University of Helsinki Liisa Tarkkila liisa.tarkkila@helsinki.fi PhD Student European and Competition Law, University of Helsinki
International Beata Mäihäniemi* Finland: constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection. beata.maihaniemi@helsinki.fi Ce document est protégé au titre du droit d'auteur par les conventions internationales en vigueur et le Code de la propriété intellectuelle du 1er juillet 1992. Toute utilisation non autorisée constitue une contrefaçon, délit pénalement sanctionné jusqu'à 3 ans d'emprisonnement et 300 000 € d'amende (art. L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document Postdoctoral Researcher Enforcement Law and Digitalization, Legal Tech Lab, Faculty of Law, University of Helsinki Liisa Tarkkila of the Finnish liisa.tarkkila@helsinki.fi PhD Student European and Competition Law, University of Helsinki ABSTRACT This report introduces selected recent Competition and Consumer enforcement of the Finnish Competition Authority (FCCA) within the last four years (2017–2020) as well as judgements of the Finnish Market Court as regards the cases brought in front of it by the FCCA. Specific Authority 2017– developments were selected by the authors of the report. Firstly, it shortly introduces the current discussion on competition law and digitalisation, which has also been active 2020 (selected in Finland. Secondly, it analyses the current enforcement of merger control in Finland, as it appears that the FCCA has taken a stricter approach than previously. Thereafter it focuses on the competition concerns and developments) investigations that arose in Finland after the taxi market was liberated for competition and on a recent case on resale price maintenance for which the FCCA is seeking a penalty payment. Finally, the report discusses recent cartel enforcement of the FCCA. The Market Court recently gave its decision on the alleged price recommendations and agreeing on prices in the market for driving schools. The FCCA has also taken to the Market Court an alleged I. Introduction cartel in the market for expanded polystyrene insulation (EPS), which involves the three of its main suppliers in Finland. Ce rapport présente une sélection de mesures d’application récentes de l’Autorité finlandaise de la concurrence (FCCA) au cours des quatre 1. Competition law in Finland dernières années (2017-2020) ainsi que les jugements du Tribunal du marché finlandais 1. In Finland competition law has been gradually developing since 1957 when concernant les affaires portées devant lui par the so-called Cartel Act1 built around the principle of publicity was announced.2 la FCCA. Des développements spécifiques ont été sélectionnés par les auteurs Thereafter, the Act Promoting Economic Competition of 1964,3 based on the du rapport. Tout d’abord, il introduit principle of abuse and the special negotiation procedure to remove the harmful brièvement la discussion actuelle sur le droit effects of restriction of competition, was introduced.4 What is more, the Act of de la concurrence et la numérisation, 19735 brought along competition authorities such as State Council, competition qui a également été active en Finlande. Deuxièmement, il analyse l’application actuelle ombudsman and Competition Council.6 However, Finnish competition law did du contrôle des concentrations en Finlande, not properly develop until the late 1980s (dismantling of price deregulation in car il apparaît que la FCCA a adopté 1988).7 The Act of 1988 on Restrictions of Competition8 added the principle of une approche plus stricte qu’auparavant. Ensuite, il se concentre sur les problèmes abuse, and harmful behaviours as a result of abuse of a dominant position or de concurrence et les enquêtes qui ont été violation of the international agreements to Finnish competition law.9 menées en Finlande après la libération du marché des taxis pour la concurrence et sur une affaire récente de maintien des prix de revente pour laquelle la FCCA demande 1 47/1957. une astreinte. Enfin, le rapport examine l’application récente de la FCCA aux ententes. 2 P. Kuoppamäki, Uusi kilpailuoikeus, 2nd edition (Sanoma Pro Oy, 2012), p. 26. La Cour du Marché a récemment rendu 3 1/1964. sa décision sur les prétendues recommandations de prix et sur l’accord 4 Kuoppamäki, supra note 4. p. 26. sur les prix sur le marché des auto-écoles. 5 423/1973. La FCCA a également saisi la Cour du marché d’une prétendue entente sur le marché 6 Kuoppamäki, supra note 4. p. 26. These competition authorities have since then been replaced and restructured with other de l’isolation en polystyrène expansé (EPS), authorities and instances. qui implique les trois principaux fournisseurs en Finlande. 7 Ibid., p. 25. 8 709/1988. *We would also like to thank Ms. Laura Kontiainen from the Legal Tech Lab for her help with the article. 9 Kuoppamäki, supra note 4. p. 26. Concurrences N° 1-2021 I International I Beata Mäihäniemi, Liisa Tarkkila I Finland: Enforcement of the Finnish Competition and Consumer Authority 2017–2020 1
2. Prior to the entry into force of the current Competition 5. The FCCA can impose a number of measures resulting constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection. Act, the core of domestic competition law was based on from prohibited restraints of competition, such as a Ce document est protégé au titre du droit d'auteur par les conventions internationales en vigueur et le Code de la propriété intellectuelle du 1er juillet 1992. Toute utilisation non autorisée constitue une contrefaçon, délit pénalement sanctionné jusqu'à 3 ans d'emprisonnement et 300 000 € d'amende (art. L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document the Act on Competition Restrictions (480/1992).10 It, prohibition to implement a restraint of competition,16 among others, added categories of behaviours considered order to terminate a restraint of competition and anticompetitive such as horizontal price cartels and obligation to deliver a product,17 commitments18 and quota cartels.11 Legal changes were supposed to lessen the withdrawal of a block exemption.19 The FCCA can also gap between Finnish and EU competition law and this propose a penalty payment for a restraint of competition.20 was a turning point for the Finnish competition law.12 In The FCCA does not itself have the authority to impose 2004 the changes to the Act on Competition Restrictions penalty payments. It does, however, have the power to added more matters to the jurisdiction of the Finnish demand an undertaking to immediately end a competition Competition Authority, which was established already law infringement and impose obligations to deal. These in 1988 in cooperation with the Ministry of Trade and FCCA decisions can be appealed to the Market Court.21 Industry. The Finnish Competition Authority was Consequently, the Market Court is the first instance, on transformed into the Finnish Competition and Consumer the FCCA’s proposal, for imposing fines and prohibiting Authority (hereinafter “FCCA”), which was established mergers.22 as a result of the merger of the Finnish Consumer Agency and the Finnish Competition Authority in January 2013. 6. The FCCA has been fairly active in recent years in different fields of competition law. The FCCA has 3. The current Competition Act came into force in 2011. concluded the investigations of several competition It is mostly reflecting the EU competition rules and infringement cases, taken what appears to be a stricter many of its provisions are modelled in accordance with approach to merger control cases and participated in EU regulations and case law of the courts of the EU.13 discussion on topical competition law issues, such as digitalisation and the role of sustainability in competition It has been amended several times since it came into law. force. The Finnish government has recently proposed an amendment, which is expected to come into force in 7. The FCCA issued a number of guidelines and February 2021. The amendment will widen the mandate papers on recent issues such as digitalisation and online of the FCCA as regards investigations of competition platforms. Extensive studies have been also conducted in infringements, including adding the possibility to impose different areas such as a hotel23 and the pharmaceutical structural remedies for competition infringements and sector.24 The FCCA cooperates with other Nordic other changes to imposing and calculating penalty competition authorities as well is a member of the payments.14 European Competition Authorities (ECA), which is a forum for discussion of the competition authorities in the European Economic Area (EEA). It also cooperates 2. The Finnish Competition with other EU Member States through the European Competition Network (ECN). and Consumer Authority: Tasks and recent developments 8. Moreover, Finland is getting ready to tackle an increased number of digital cases as it already has a 4. The area of responsibility of the FCCA includes number of digital services for both the private and public implementing competition and consumer policy, ensuring the functionality of markets, enforcing the Competition Act (948/2011), implementing EU competition regulations and securing the financial and legal status of consumers. What is more, the Consumer Ombudsman is 16 Ibid., chapter, section 8. located within the Finnish Competition and Consumer 17 Ibid., chapter 1, section 9. Authority.15 The FCCA functions according to the Act 18 Ibid., chapter 1, section 10. on the Finnish Competition and Consumer Authority, the Competition Act and applicable consumer protection 19 Ibid., chapter 1, Section 11. laws. 20 Ibid., chapter 1, Section 12. 21 Kuoppamäki, supra note 4. pp. 31–32. 22 Ibid., p. 32. 10 Act on Competition Restrictions (480/1992) unofficial English translation available at 23 See, e.g., M. Saastamoinen, K. Järvelä, A. Raijas, Hotellien näkemyksiä sähköisistä https://www.fakongjian.com/int_doc/laws/20160531/0613/fi096en20160531061304.pdf varauspalvelukanavista, Kilpailu- ja kuluttajaviraston selvityksiä 6/2017, December 2017, (last accessed 7 January 2021). https://www.kkv.fi/globalassets/kkv-suomi/julkaisut/selvitykset/2017/kkv-selvityksia-6- 2017-varauspalvelukanavat.pdf (last accessed 22 December 2020). 11 Kuoppamäki, supra note 4. p. 27. 24 M. Anttinen, T. Hakola, A. Saastamoinen, V. Terävä, S. Valliluoto, Apteekkimarkkinoiden 12 Ibid., p. 28. Finland joined the EU in January 1995. kehittäminen, Kilpailu- ja kuluttajaviraston selvityksiä 5/2020, https://www.kkv. fi/globalassets/kkv-suomi/julkaisut/selvitykset/2020/kkv-selvityksia-5-2020- 13 O. Wikberg, Johdatus kilpailuoikeuteen (Talentum, 2011), p. 28. apteekkimarkkinoiden-kehittaminen.pdf (last accessed 22 December 2020). See also 14 Government Proposal (HE) 210/2020 vp. press release in English, Finnish Competition Authority, The FCCA pharmacy market study proposes measures to reduce the costs of medicines for consumers and society, 15 Competition Act (948/2011) unofficial translation can be found here https://finlex.fi/ https://www.kkv.fi/en/current-issues/press-releases/2020/11.11.2020-the-fcca-pharmacy- fi/laki/kaannokset/2011/en20110948.pdf (last accessed 7 January 2021), chapter 1, market-study-proposes-measures-to-reduce-the-costs-of-medicines-for-consumers-and- section 1. society (last accessed 22 December 2020). 2 Concurrences N° 1-2021 I International I Beata Mäihäniemi, Liisa Tarkkila I Finland: Enforcement of the Finnish Competition and Consumer Authority 2017–2020
sectors.25 Finland scored first out of the 28 Member States II. FCCA’s constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection. in the Digital Economy and Society Index in 2020.26 The Ce document est protégé au titre du droit d'auteur par les conventions internationales en vigueur et le Code de la propriété intellectuelle du 1er juillet 1992. Toute utilisation non autorisée constitue une contrefaçon, délit pénalement sanctionné jusqu'à 3 ans d'emprisonnement et 300 000 € d'amende (art. L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document Digital Economy and Society Index is a composite index that summarises relevant indicators on Europe’s digital performance and tracks the evolution of EU Member stance on digital States in digital competitiveness.27 matters and first 3. Contents of the report “digital cases” in a nutshell 9. The report in question focuses on a few specific areas 1. FCCA’s stance on AI/ of enforcement of the FCCA within the past four years digitalisation issues (2017–2020). Therefore, the report only tackles specific developments of the FCCA which were selected by the 13. In Finland, the issue of online platforms affecting authors of the report. competition in the market has been mostly analysed by the FCCA. This has been done, among others, by 10. Firstly, it looks into cases concerning digital area evaluating the concept of an online platform.29 FCCA and Article 102; however, in these two cases no penalty points out that an online platform is usually defined payment has been imposed by the Market Court upon from a non- consumer - business perspective—that is, by a proposal of the FCCA, therefore they were not heard looking how platforms generate innovation, new business before the Market Court.28 Secondly, it analyses the practices and competitive advantages as well as impact current trends in merger control in Finland. It can be the market they operate in. According to the FCCA, the argued that mergers are investigated more closely than non-consumer perspective is insufficient and should be previously. Thereafter it focuses on the competition evolved on.30 concerns and investigations that arose in Finland after the taxi market was liberalised and on a recent case on 14. So far the FCCA has investigated a few companies resale price maintenance for which the FCCA is seeking and it has been doing research on the issue and publishing a penalty payment. its own stance on the matter. This has been anticipated by means of cooperation between Nordic competition 11. Finally, the report discusses recent cartel enforcement authorities as well as two recent reports produced by the of the FCCA. The Market Court recently gave its decision FCCA. on the alleged price recommendations and agreeing on prices in the market for driving schools. The FCCA has 15. Firstly, the cooperation between Nordic competition also taken to the Market Court an alleged cartel in the authorities and their position on current, most discussed market for expanded polystyrene insulation (EPS), which problems in digital markets has been expressed in involves the three of its main suppliers in Finland. a recent joint memo on “Digital platforms and the potential changes to competition law at the European 12. The report focuses on the recent enforcement of the level. The view of the Nordic competition authorities.”31 FCCA with a focus on the past four years. As stated, In particular, Nordic countries have expressed their overall it can be seen that the FCCA has been active stance on new regulatory proposals of the European within the past few years, within both merger control and Commission (EC). anticompetitive agreements. 16. The EC launched in June 2020 a public consultation on a New Competition Tool (NCT) that would allow for the Commission to tackle existing gaps in the current EU competition rules and enable intervention where structural competition problems occur.32 29 See B. Mäihäniemi, L. Tarkkila, P. Günsberg, National Report: Finland, EU Competition Law and the Digital Economy: Protecting Free and Fair Competition in an Age of Technological (R)evolution: XXIX Fide Congress in The Hague, 2020 Congress 25 Nordic competition authorities, Digital platforms and the potential changes to Publications, Vol. 3, D. Mândrescu, ed. (Eleven International Publishing), pp. 203–225, competition law at the European level. The view of the Nordic competition authorities, https://boeken.rechtsgebieden.boomportaal.nl/publicaties/9789462361300#231 (last https://www.kkv.fi/globalassets/kkv-suomi/julkaisut/pm-yhteisraportit/nordic-report- accessed 22 December 2020). 2020-digital-platforms-and-the-potential-changes-to-competition-law-at-the-european- level.pdf (last accessed 22 December 2020), p. 5. 30 T. Björkroth, K. Järvelä, A. Raijas, R. Rosendahl, M. Saastamoinen, J. Vuorinen, Alustat kilpailu- ja kuluttajaoikeudellisessa tarkastelussa, Kilpailu- ja kuluttajaviraston 26 European Commission (2020), The Digital Economy and Society Index (DESI) 2020, selvityksiä 4/2017, April 2017, https://www.kkv.fi/globalassets/kkv-suomi/julkaisut/ https://ec.europa.eu/digital-single-market/en/digital-economy-and-society-index-desi selvitykset/2017/kkv-selvityksia-4-2017-alustat.pdf (last accessed 22 December 2020), (last accessed 22 December 2020). pp. 11–12. 27 Ibid. 31 Nordic competition authorities, supra note 25. 28 In Finland, penalty payments are proposed by the FCCA to the Market Court. However 32 European Commission, Inception Impact Assessment. New Competition Tool (“NCT”), the FCCA can request the company infringing competition law to address the FCCA’s https://ec.europa.eu/competition/consultations/2020_new_comp_tool/new_comp_ concerns with commitments. tool_inception_impact_assessment.pdf (last accessed 22 December 2020), p. 1. Concurrences N° 1-2021 I International I Beata Mäihäniemi, Liisa Tarkkila I Finland: Enforcement of the Finnish Competition and Consumer Authority 2017–2020 3
17. In such situations, the EC could resort to remedies 21. What is more, Nordic competition authorities constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection. without the need to identify a specific competition law recommend that NCT would also include procedural Ce document est protégé au titre du droit d'auteur par les conventions internationales en vigueur et le Code de la propriété intellectuelle du 1er juillet 1992. Toute utilisation non autorisée constitue une contrefaçon, délit pénalement sanctionné jusqu'à 3 ans d'emprisonnement et 300 000 € d'amende (art. L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document infringement. The EC could then impose remedies but safeguards for parties involved such as, e.g., the right to would not impose fines.33 The new tool would then be judicial review.43 Finally, they stress that some kind of similar to sector-specific regulation applied in network guidance on agreements between companies to exchange, industries and would aim at speeding competition policy share and collate data would be in place. In particular, enforcement up.34 there is a need to assess how to design data-sharing remedies.44 18. At the same time, the EC is also working on a proposal of the Digital Services Act (DSA).35 This new 22. The issue of data collection has already been stressed legal framework would modernise the current legal by the FCCA in its report on data economy, which framework for digital services by creating a set of clear ponders upon the relationship between competition, rules on responsibilities of digital services.36 It would also consumer protection and data protection regulation aim at “propos[ing] ex-ante rules covering large online in data economies.45 This report points out that data platforms acting as gatekeepers, which now set the rules of protection level in data markets requires intervention the game for their users and their competitors. The initiative since weak competition in such markets may lead should ensure that those platforms behave fairly and can to extensive data collection. By contrast, in a well- be challenged by new entrants and existing competitors, functioning market, users would be able to choose from a so that consumers have the widest choice and the Single number of different data protection options. The report Market remains competitive and open to innovations.”37 shows a possibility for enterprises to compete on quality by means of data protection. However, consumers still 19. There would therefore be a list of allowed and pay for services with their data.46 forbidden conducts that digital gatekeepers could be involved in. However, competition law would need to 23. Secondly, the other report issued by the FCCA, one on assess the harmfulness of the behaviours in-between.38 digital platforms,47 points out that Finnish competition A legislative proposal on the issue has been recently law regulations, in particular Sections 5 and 7 of the drafted.39 Finnish Competition Act, as well as Articles 101 and 102 TFEU are fit to address the anticompetitive behaviours 20. Nordic competition authorities support assessment of online platforms.48 As pointed out by Dr. Vuorinen of new EC regulatory initiatives. However, they stress that from the FCCA, the FCCA does not yet have any specific one has to weigh the advantages and risks associated with policy on digital markets.49 However, the FCCA Director, such a regulatory intervention and ensure legal certainty Rainer Lindberg, acknowledges that the whole economy as well as predictability.40 At the same time, Nordic is already extensively digitised and competition law competition authorities point out that the application should be applied recognising and accepting such a state of these new initiatives raises a number of procedural of affairs.50 and substantive issues such as the legal standard to be adopted, how engaged should the companies involved 24. Finally, this report also mentions that price algorithms in these proceedings be, as well as relevant national could be analysed under the scrutiny of competition law.51 competition authorities.41 Nordic competition authorities It could be possibly analysed as a prohibited exchange of also recommend some kind of guidelines on how the information.52 NCT should be used.42 33 Ibid., p. 4. 43 Ibid. 34 European University Institute, Robert Schuman Centre for Advanced Studies. The 44 Ibid., p. 13. Digital Markets Act: EU Competition Policy at a Crossroads, https://www.eui.eu/ DepartmentsAndCentres/RobertSchumanCentre/Dissemination/News/The-Digital- 45 A. Raijas, R. Rosendahl, M. Saastamoinen, J. Vuorinen, Kilpailun ja kuluttajansuojan Markets-Act-EU-Competition-Policy-at-a-Crossroads (last accessed 22 December 2020). kysymyksiä datataloudessa, Kilpailu- ja kuluttajaviraston selvityksiä 1/2019, January 2019, https://www.kkv.fi/globalassets/kkv-suomi/julkaisut/selvitykset/2019/kkv- 35 European Commission, The Digital Services Act package, Shaping Europe’s digital future, selvityksia-1-2019-kilpailun-ja-kuluttajansuojan-kysymyksia-datataloudessa.pdf (last https://ec.europa.eu/digital-single-market/en/digital-services-act-package (last accessed accessed 22 December 2020), p. 9. 22 December 2020). 46 Ibid., p. 27. 36 Ibid. 47 Björkroth et al. supra note 30. 37 Ibid. 48 Ibid., p. 19. 38 European University Institute, supra note 34. 49 Mäihäniemi et al. supra note 29, pp. 203–225. 39 See European Commission, Proposal for a Regulation of the European Parliament and of the Council on a Single Market For Digital Services (Digital Services Act) anamending 50 R. Lindberg, Digimarkkinoiden kilpailukysymykset kiinnostavat kansainvälisesti, Directive 2000/31/EC, Brussels, 15.12.2020, COM(2020) 825 final 2020/0361 (COD). Ajankohtaista kilpailusta, 12 March 2019, https://ajankohtaistakilpailusta. fi/2019/03/12/digimarkkinoiden-kilpailukysymykset-kiinnostavat-kansainvalisesti (last 40 Nordic competition authorities, supra note 25. accessed 22 December 2020). 41 Ibid., p. 19 51 Björkroth et al. supra note 30, p. 22. 42 Ibid. 52 Mäihäniemi et al. supra note 29, p. 208. 4 Concurrences N° 1-2021 I International I Beata Mäihäniemi, Liisa Tarkkila I Finland: Enforcement of the Finnish Competition and Consumer Authority 2017–2020
2. “Digital cases” 2.2 Faba osuuskunta/ProAgria Keskusten constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection. Liitto ry/Suomen Maatalouden Ce document est protégé au titre du droit d'auteur par les conventions internationales en vigueur et le Code de la propriété intellectuelle du 1er juillet 1992. Toute utilisation non autorisée constitue une contrefaçon, délit pénalement sanctionné jusqu'à 3 ans d'emprisonnement et 300 000 € d'amende (art. L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document 25. In this section, two investigations of the FCCA into cases with digital characteristics are looked into—that is, Laskentakeskus Oy Pizza-Online and Faba osuuskunta, ProAgria Keskusten 29. Finally, another so-called digital case concerned Liitto ry and Suomen Maatalouden Laskentakeskus Oy. markets for selective breeding and output tracking However, in these cases no penalty payment has been records and the software that utilises them.62 The case is imposed by the Market Court upon a proposal of the already from 2014, but relevant due to the limited amount FCCA, therefore they were not heard before the Market of digitalisation-related competition cases in Finland. In Court.53 Such a penalty payment is imposed under Finland purebred cows or sheep are documented in specific Section 12 of the Finnish Competition Act (FCA)54 for herd books that are also registered in specific breeding major infringements of competition law upon a proposal and yield monitoring registers.63 Farms are provided with from the FCCA.55 Both these cases have been concluded specific enterprise resource planning (ERP) software, without the FCCA taking any further action.56 which makes it possible to both send information to the processing and output monitoring registers and retrieve 2.1 Pizza-Online the information they contain. Nevertheless, this software was only provided by one particular company that was 26. In 2017, the FCCA found Pizza-Online abusing its also able to utilise the information in the registers.64 dominant position by imposing an exclusive supply clause on restaurants using Pizza-Online, as a result of 30. The companies providing the purebred registers which these restaurants were not allowed to use other Faba osuuskunta, ProAgria Keskusten Liitto ry are food ordering and payment platforms.57 Pizza-Online also owned by the company providing the software, also prohibited restaurants that use Pizza-Online from Suomen Maatalouden Laskentakeskus Oy. Jointly, these charging different prices for ordering their food through companies had, according to the FCCA, abused their internet and food portions sold directly in restaurants.58 dominant market position by denying other companies access to their processing and yield monitoring registers. 27. Pizza-Online is an online food ordering service used This has affected the effective competition in the market by independent restaurant entrepreneurs and chains and since it requires access to such registers.65 customers. It connects restaurants and customers.59 31. The case66 could be classified as one on a refusal to deal. 28. The alleged abuse Pizza-Online was involved in was Competitors of Faba osuuskunta, ProAgria Keskusten an exclusive supply clause, which had been included Liitto ry and Suomen Maatalouden Laskentakeskus Oy in its agreements with the restaurants, that prohibited were unable to compete unless interfaces are built into them from entering into agreements with Pizza- the registers to allow data to be sent and received.67 Online’s competing food order services.60 Pizza-Online 32. Competitors were unable to successfully compete in subsequently informed the FCCA that it had removed the the market for software utilising processing and output mandatory exclusive supply clauses from its agreements registers.68 Consequently, access to the processing and and that the restaurants were free to use other food yield monitoring registers must therefore be considered order service providers. The FCCA therefore ended the objectively necessary to operate in the market for investigation without concluding whether Pizza-Online software using output tracking registers.69 had infringed competition law.61 33. FCCA required the companies in question to commit to offering interfaces that would allow third parties, i.e., companies operating in the commercial software market, to access the registers.70 Therefore, no penalty has been proposed by the FCCA to the Market Court. 62 FCCA commitment decision, Reference No. 956/14.00.00/2011, 18 December 2014 (Faba 53 Ibid., p. 203. osuuskunta/ProAgria Keskusten Liitto ry/Suomen Maatalouden Laskentakeskus Oy). 54 The Finnish Competition Act (No. 948/2011) (unofficial translation), https://www.finlex. 63 FCCA statement, KKV:n päätös lisää kilpailua maatilatalouden ohjelmistojen fi/en/laki/kaannokset/2011/en20110948.pdf (last accessed 22 December 2020). markkinoilla, 18 December 2014, https://www.kkv.fi/ajankohtaista/ Tiedotteet/2014/18.12.2014-kkvn-paatos-lisaa-kilpailua-maatilatalouden- 55 Ibid. ohjelmistojen-markkinoilla (last accessed 22 November 2020). 56 Mäihäniemi et al. supra note 29, p. 203. 64 Ibid. 57 Ibid., p. 1, para. 4.2. 65 Ibid. 58 Ibid. 66 FCCA commitment decision, supra note 62. 59 Ibid., p. 2, para. 5.2. (6) 67 Ibid., para. 55. 60 See Finnish Competition Authority, Kilpailu- ja kuluttajaviraston vuosikirja 2017, 68 Ibid., para. 49. 2017, https://www.kkv.fi/globalassets/kkv-suomi/julkaisut/vuosikirjat/kkv/kkv- vuosikertomus-2017.pdf (last accessed 22 December 2020), p. 11. 69 Ibid., para. 53. 61 Ibid. See also Mäihäniemi et al. supra note 29, p. 204. 70 Ibid., section 6.4. Concurrences N° 1-2021 I International I Beata Mäihäniemi, Liisa Tarkkila I Finland: Enforcement of the Finnish Competition and Consumer Authority 2017–2020 5
III. Recent 35. In addition, the FCCA in 2019 gave its first “stop-the- constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection. clock” decision in a merger case.74 The first gun-jumping Ce document est protégé au titre du droit d'auteur par les conventions internationales en vigueur et le Code de la propriété intellectuelle du 1er juillet 1992. Toute utilisation non autorisée constitue une contrefaçon, délit pénalement sanctionné jusqu'à 3 ans d'emprisonnement et 300 000 € d'amende (art. L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document case was also investigated by the FCCA in the same year developments as the creators of a joint venture did not notify it to the FCCA. The parties had been under the impression that in merger control the merger notification requirements were not applicable in that particular case.75 Though the FCCA found that in Finland the joint venture should have been notified when created, no penalty payment was requested, as the set-up and whether the joint venture was full-function, and thus 34. In recent years, the Finnish merger control regime applicability of the merger control legislation to the joint has seen interesting developments. There has been an venture, was ambiguous.76 increase in merger notifications that have been found to be incomplete71 and quite a few cases have also been taken to 36. Another possible sign of stricter enforcement of a phase 2 investigation. Between the beginning of merger merger control in Finland is that until recently the FCCA control in Finland (1998) and 2016, the FCCA initiated had proposed the prohibition77 of only three mergers 49 second phase investigations. Whereas in the past four since the beginning of merger control in Finland. Those years there have been 21 investigations in the second cases were not successful in the Market Court, as it phase. There was a clear peak in 2018. It can partially be concluded in all those cases that the mergers did not explained by the type of cases in investigation, but it is impede the effective competition in a manner that the worthwhile to note that only three of the cases resulted mergers should have been prohibited. However, between in an approval subject to remedies. Between 2017 and 2019 and 2020 the FCCA has proposed the prohibition 2020, the FCCA has also asked the Market Court for an of two mergers. extension to the second phase investigation, as allowed by the Competition Act,72 in six mergers that it has 37. The first prohibition proposal, and subsequent investigated.73 It appears that the FCCA seems to have prohibition by the Market Court,78 concerned the taken a more detailed approach to investigating mergers. market of non-specialised wholesale trade. According to This could also relate to the overall increase in data and the investigation by the FCCA, the merger would have its digitalisation, which most likely has made conducting significantly impeded competition in the wholesale of the investigations more complex. However, it also seems daily products for foodservice customers.79 The merged that the FCCA has set a higher standard for the merger entity would have had a dominant position in the market notifications and conducts more detailed investigations of non-specialised wholesale trade.80 It would have then than previously. led to an increase in the prices for private foodservice customers, which in turn would have increased the Mergers Phase 2 Approved Approved Pro- prices of restaurant meals for consumers as customers notified to investiga- with com- hibition the FCCA tion mitments proposal of restaurants and hotels.81 The notifying party had proposed behavioural remedies, but the FCCA did not 2020 24* 4 18 2 1 consider them to be sufficient to remove the problems to 2019 36 ** 3 30 4 1 competition that the merger would have caused.82 The 2018 39 9 36 3 0 Market Court agreed with the FCCA’s proposal and the 2017 29 5 27 2 0 74 According to the FCCA in the case the notifying party provided on its own initiative materials and economic analysis based on these materials. The FCCA decided to give the stop-the-clock decision as the new materials would delay the conclusion of the FCCA’s decision. FCCA statement, Caverionin ja Maintpartnerin välisen yrityskaupan käsittelyaikaa on jatkettu 24.11.2019 saakka, 4 September 2019, https://www.kkv. fi/ajankohtaista/Tiedotteet/2019/4.9.2019-caverionin-ja-maintpartnerin-valisen- yrityskaupan-kasittelyaikaa-on-jatkettu-24.11.2019-saakka (last accessed 22 December 2020). 75 FCCA decision (YIT Suomi Oy ja GT Invest Oy), Reference No. KKV/652/14.00.10/2019, 1 August 2019, p. 3. 76 Ibid., p. 4. 77 In Finland the Market Court has the authority to prohibit mergers on the proposal of the 71 There have been several cases since the beginning of 2018 that have been considered FCCA, Section 25 of the Competition Act. incomplete. Interestingly one merger filing was considered incomplete at the end of the second phase of the investigation (FCCA decision (Avarn Security Holding AS/Prevent 360 78 Market Court decision (Kesko Oyj/Heinon Tukku Oy), MAO:50/20, Reference Holding Oy), Reference No. KKV/121/14.00.10/2018, 12 October 2018). The merger was No. 2019/375, 17 February 2020. first notified in January 2018, then considered incomplete in May 2018 and subsequently 79 FCCA proposal to the Market Court to prohibit a merger (Kesko Oyj/Heinon Tukku Oy), refiled in June 2018. Reference No. KKV/55/14.00.10/2019, 18 November 2019, para. 1. 72 Finnish Competition Act, Section 26. 80 Kesko Oyj/Heinon Tukku Oy supra note 78, paras. 802–803. 73 No such extensions were requested or approved between 2013 and 2016. 81 FCCA statement, 17 February 2020, Markkinaoikeus kielsi Keskon ja Heinon Tukun välisen yrityskaupan, available at https://www.kkv.fi/ajankohtaista/ * There are currently (22 December 2020) two pending merger cases at the FCCA and one Tiedotteet/2020/17.2.2020-markkinaoikeus-kielsi-keskon-ja-heinon-tukun-valisen- merger notification was cancelled by the notifying party. yrityskaupan (last accessed 22 December 2020). ** One merger notification was cancelled by the notifying party. 82 Kesko Oyj/Heinon Tukku Oy supra note 78, para. 474. 6 Concurrences N° 1-2021 I International I Beata Mäihäniemi, Liisa Tarkkila I Finland: Enforcement of the Finnish Competition and Consumer Authority 2017–2020
merger was prohibited,83 making it the first merger to be 40. The corona pandemic has also had its effect on the constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection. prohibited in the over twenty years of merger control in merger control process.91 A temporary amendment was Ce document est protégé au titre du droit d'auteur par les conventions internationales en vigueur et le Code de la propriété intellectuelle du 1er juillet 1992. Toute utilisation non autorisée constitue une contrefaçon, délit pénalement sanctionné jusqu'à 3 ans d'emprisonnement et 300 000 € d'amende (art. L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document Finland. made to the Competition Act in October 2020, which prolonged the duration of the second phase of a merger 38. In September 2020 the FCCA also proposed the investigation from 69 working days to 92 working days. prohibition of a merger between two health service The law came into force retroactively and applied to all providers to the Market Court.84 The Finnish health mergers that were notified after 2 July 2020. It was in services market has three major health service providers, force until the end of October 2020.92 The amendment out of which two were parties to the planned acquisition. was made due to difficulties the FCCA faced conducting According to the FCCA, these two companies are each market investigations during the pandemic. The concern other competitors in almost all segments of private health was that they would not get responses for information care and provide services widely for private persons, requests from other parties, such as customers and companies, insurance companies and public service competitors, as well and swiftly as necessary for the customers. According to the market investigations by the investigation.93 authority, the merger would most likely lead to significant rises in prices in all these segments for the detriment of customers and taxpayers.85 The parties tried to propose remedies, but the FCCA did not consider them sufficient IV. Other important developments: Taxi to address the concerns to competition. The Director of Merger Control at the FCCA stated in the FCCA press release: “Not all mergers can be cleared with remedies. Due to the scale and gravity of the competition concerns, the remedies were not a realistic option”86 market and RPM 39. While the proposed merger was under the examination case (Article 101 TFEU) of the Market Court, the health service providers issued a statement that they will not proceed with the planned merger.87 According to the parties this was due to the requirements of the Finnish Securities Market Act, as the acquiring company was no longer able to extend the 1. Opening of the taxi market voluntary public cash tender offer.88 The Market Court therefore concluded that the merger had been cancelled and associated cases and the prerequisites for the Market Court to decide the 41. In Finland, the FCCA has investigated the allegedly case no longer existed and the matter was considered to anticompetitive behaviour of companies that provide taxi have lapsed.89 The Market Court clearly stated that if the rides sponsored by one of the government agencies— parties decided to again proceed with the merger, even if the Social Insurance Institution of Finland (KELA).94 it were completed exactly as previously, the merger would KELA provides basic economic security for everyone be assessed in at least a partially different competition living in Finland.95 Rides paid from public funds are environment, and therefore, any statements by the Market of great importance for the operation of the Finnish Court in this case would have no effects in assessing a future taxi market.96 The importance of KELA rides for taxi merger notification in the matter.90 It is currently unknown operators varies regionally, but the importance of KELA whether the health service providers will appeal this decision. rides is especially emphasised in areas outside larger 83 Kesko Oyj/Heinon Tukku Oy supra note 78, para. 995. 91 Similarly, the corona pandemic has had its effect on competition law enforcement for 84 FCCA proposal to the Market Court to prohibit a merger (Mehiläinen Oy/Pihlajalinna agreements between competitors in Finland. The FCCA has also issued in the spring of Oyj), Reference No. KKV/1233/14.00.10/2019, 29 September 2020. 2020 a press release where it states that during Finland’s state of emergency, companies may need to work together to ensure adequate supply or the equal distribution of 85 FCCA statement, KKV esittää Mehiläisen ja Pihlajalinnan välisen yrityskaupan kieltämistä, products to all consumers. The FCCA has stated that it will not intervene in measures 29 September 2020, https://www.kkv.fi/ajankohtaista/Tiedotteet/2020/29.9.2020- that are necessary to ensure the sufficient availability of products. These measures are kkv-esittaa-mehilaisen-ja-pihlajalinnan-valisen-yrityskaupan-kieltamista (last accessed in accordance with the document on the impact of the coronavirus on the application 22 December 2020). of competition legislation issued by the European Commission in cooperation with competition authorities from the EU. FCCA, Press release 23.3.2021, Exceptional 86 FCCA statement, The FCCA proposes the Market Court to prohibit the merger between circumstances caused by the coronavirus to affect the application of the Finnish Mehiläinen and Pihlajalinna, 29 September 2020, https://www.kkv.fi/en/current-issues/ Competition Act, https://www.kkv.fi/en/current-issues/press-releases/2020/23.3.2020- press-releases/2020/29.9.2020-the-fcca-proposes-the-market-court-to-prohibit-the- exceptional-circumstances-caused-by-the-coronavirus-to-affect-the-application-of-the- merger-between-mehilainen-and-pihlajalinna/ (last accessed 22 December 2020). competition-act (last accessed 7 January 2021). 87 Mehiläinen Oy press release, Mehiläinen Yhtiöt Oy:n kaikista Pihlajalinna Oyj:n 92 Response of the Parliament EV 98/2020 vp, https://www.eduskunta.fi/FI/vaski/ osakkeista tekemän vapaaehtoisen julkisen käteisostotarjouksen lopullinen tulos; EduskunnanVastaus/Sivut/EV_98+2020.aspx (last accessed 22 December 2020). Mehiläinen Yhtiöt Oy ei toteuta ostotarjousta, 25 November 2020, https://www. mehilainen.fi/lehdistotiedotteet/mehilainen-yhtiot-oyn-kaikista-pihlajalinna-oyjn- 93 Government proposal (HE) 99/2020 vp, p. 5. osakkeista-tekeman (last accessed 10 January 2020). 94 Ibid., pp. 1–2, para. 4. 88 Market Court decision (Mehiläinen Oy/Pihlajalinna Oyj), MAO:581/20, Reference No. 2020/393, 29 December 2020. 95 KELA, About Kela, https://www.kela.fi/web/en/about-kela (last accessed 19 December 2020). 89 Ibid., paras. 26 and 30. 96 FCCA decision (Kokkolan Taksiliikenne Oy), Reference No. KKV/249/14.00.00/2019, 3 90 Ibid., para. 29. June 2020, pp. 1–2, para. 4. Concurrences N° 1-2021 I International I Beata Mäihäniemi, Liisa Tarkkila I Finland: Enforcement of the Finnish Competition and Consumer Authority 2017–2020 7
cities and agglomerations.97 KELA rides constitute a quotas. These restrictions aimed at safeguarding the constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection. significant source of income for many taxi operators and profitability of taxi operators who were shareholders in Ce document est protégé au titre du droit d'auteur par les conventions internationales en vigueur et le Code de la propriété intellectuelle du 1er juillet 1992. Toute utilisation non autorisée constitue une contrefaçon, délit pénalement sanctionné jusqu'à 3 ans d'emprisonnement et 300 000 € d'amende (art. L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document account for up to 20% of the total turnover in the sector the taxicab brokerage.106 Secondly, the taxi rides were nationally.98 not evenly distributed, e.g., taxis in a given locality or group of journeys were given priority.107 Thirdly, taxi 42. According to the FCCA, the liberalisation of the drivers were prohibited from driving for other taxicab taxi system that has been conducted in 2018 created brokerages, which could have weakened the operating more competition and lessened the amount of regulation conditions of taxi operators or other intermediaries.108 in the industry. However, it also brought a number of Fourthly, taxi drivers have agreed on too extensive shifts, changes to the detriment of consumers.99 For example, e.g., unnecessarily extensive on-call and 24-hour shifts taxi operators started to struggle to obtain KELA rides throughout the area. The FCCA has given more detailed from taxicab brokerages, which led to launching an instructions to the taxi industry on agreeing driving shifts investigation into the operation of the taxicab brokerages and emergency positions.109 in the spring of 2019 by the FCCA.100 46. In the result of the investigations, the agency has also 43. The operation of these taxicab brokerages has updated its guidance for the taxi industry.110 prevented or impeded the activities of taxi drivers, which has reduced competition in the taxi markets and also reduced customers’ choice.101 Taxicab brokerages 2. Isojoen Konehalli Oy are often owned by taxi operators and the FCCA has 47. One of the other major recent developments is a investigated the problems in question as prohibited case of Isojoen Konehalli Oy (IKH) tackling resale price cooperation between competing companies. What is maintenance (RPM).111 more, taxi operators are often dependent on access to local taxicab brokerages.102 For example, where the taxi company has been operating as the only order brokerage 48. The previous case on RPM in Finland has been decided centre for KELA rides in its area, such an operation, has, by the Market Court in 2011 as regards the practices of according to the FCCA, strengthened the taxi company’s Iittala Group Oy,112 where the Market Court ordered position in relation to taxi operators and end customers.103 Iittala to pay a penalty fee of €3,000,000 for setting for its independent retailers in Finland the lowest permitted retail 44. During the FCCA investigation seven taxicab price for the company’s best-known products such as KoKo, brokerages—Kokkolan Taksiliikenne Oy, Kuru-Taksi Teema, Aalto, Moomin, Kivi, Mariskooli and 24h between Oy, Pohjanmaan Taksi Oy, PRO-Keskus Oy, Taksi April 2005 and the end of 2007.113 The Market Court found Päijänne Oy, Tampereen Aluetaksi Oy and Vaasan that RPM had the purpose of setting minimum prices Ulataksi Oy104—have changed their mode of operation. and raising the price level of Iittala’s products, as well However, the operations of the six other companies are as reducing competition between distributors of Iittala’s still under FCCA’s investigation.105 products. The procedure covered the entire territory of Finland and lasted for several years.114 45. The FCCA has especially focused in its investigation on the following practices that may have restricted 49. However, the largest penalty payment proposal competition between taxi operators and slowed down so far imposed for setting the resale price in the opening of the taxi market to incomers. Firstly, taxi Finland—€9 million—was given to the IKH.115 IKH drives were prevented from accessing the mediation of their rides to consumers by various restrictions and 106 FCCA statement, supra note 98. 107 Ibid. 97 Ibid. 108 Ibid. 98 FCCA statement, KKV:n taksiselvitykset: Seitsemän välityskeskuksen toiminnan tutkinta 109 Ibid. päättyy – kuutta keskusta epäillään yhä kielletyistä kilpailunrajoituksista, 4 June 2020, 110 Ibid. https://www.kkv.fi/ajankohtaista/Tiedotteet/2020/4.6.2020-kkvn-taksiselvitykset- seitseman-valityskeskuksen-toiminnan-tutkinta-paattyy--kuutta-keskusta-epaillaan- 111 FCCA penalty payment proposal (Isojoen Konehalli Oy), Reference No. yha-kielletyista-kilpailunrajoituksista (last accessed 22 December 2020). KKV/676/4.00.00/2015, 20 May 2020. The case is pending in the Market Court at the time of writing. See FCCA blog, Määrähinnoittelu toimitus- ja jakelusopimuksissa rajoittaa 99 Ibid. kilpailua, Ajankohtaista kilpailuoikeutta, 29 May 2020, https://ajankohtaistakilpailusta. 100 Ibid. fi/2020/05/29/maarahinnoittelu-toimitus-ja-jakelusopimuksissa-rajoittaa-kilpailua (last accessed 22 December 2020). 101 Ibid. 112 Market Court decision (Iittala Group Oy Ab), MAO:594/11, Reference No. 159/10/KR, 102 FCCA decision (Kuru-Taksi Oy), Reference No. KKV/250/14.00.00/2019, 3 June 2020, 20 December 2011. pp. 7–8, para. 30. 113 Ibid. 103 Ibid., p. 2, para. 7. 114 Ibid. 104 See all the taxi investigations in detail: FCCA decision (Vaasan Ulataksi Oy), Reference No. KKV/257/14.00.00/2019, 3 June 2020; FCCA decision (Tampereen Aluetaksi Oy), 115 Isojoen Konehalli Oy supra note 111, see also FCCA statement, KKV esittää 9 miljoonan Reference No. KKV/256/14.00.00/2019; FCCA decision (PRO-Keskus Oy), Reference euron seuraamusmaksua IKH:lle jälleenmyyjien hintojen määräämisestä, 20 May 2020, No. KKV/254/14.00.00/2019, 3 June 2020; FCCA decision (Pohjanmaan Taksi Oy), https://www.kkv.fi/ajankohtaista/Tiedotteet/2020/20.5.2020-kkv-esittaa-9-miljoonan- Reference No. KKV/253/14.00.00/2019, 3 June 2020; Kuru-Taksi Oy supra note 102, euron-seuraamusmaksua-ikhlle-jalleenmyyjien-hintojen-maaraamisesta (last accessed Kokkolan Taksiliikenne Oy supra note 96. 22 December 2020); see also I. Lindfors, H. Puskala, A. Paanajärvi, Vertikaaliset kilpailunrajoitukset verkkokaupassa – sääntely murroksessa, Defensor Legis 2020/4, 105 Ibid. pp. 575, 583. 8 Concurrences N° 1-2021 I International I Beata Mäihäniemi, Liisa Tarkkila I Finland: Enforcement of the Finnish Competition and Consumer Authority 2017–2020
is a company that imports mainly tools, machines, 55. The Market Court concluded that appellant’s constitutes a violation of the publisher's rights and may be punished by up to 3 years imprisonment and up to a € 300 000 fine (Art. L. 335-2 Code de la Propriété Intellectuelle). Personal use of this document is authorised within the limits of Art. L 122-5 Code de la Propriété Intellectuelle and DRM protection. tractor spare parts, accessories, work clothing and allegations of substantive and procedural errors in the Ce document est protégé au titre du droit d'auteur par les conventions internationales en vigueur et le Code de la propriété intellectuelle du 1er juillet 1992. Toute utilisation non autorisée constitue une contrefaçon, délit pénalement sanctionné jusqu'à 3 ans d'emprisonnement et 300 000 € d'amende (art. L. 335-2 CPI). L’utilisation personnelle est strictement autorisée dans les limites de l’article L. 122 5 CPI et des mesures techniques de protection pouvant accompagner ce document. This document is protected by copyright laws and international copyright treaties. Non-authorised use of this document protective gear, fasteners, tyres for agricultural machines FCCA’s decision were unfounded. The Market Court and batteries from over 30 different countries. Their rejected IKH’s claims demanding the rejection of the product range includes over 50,000 items which are sold execution of the FCCA’s decision in Isojoen Konehalli Oy in Finland through different dealer networks and to case.123 The court had, among others, pointed out that strongly growing export markets.116 Isojoen Konehalli has not put forward any arguments in support of its claims for non-execution of the FCCA’s 50. The FCCA’s proposal of the fine to IKH to the decision that would prove the decision may cause Market Court was based on the finding that Isojoen significant harm.124 Konehalli Oy has committed an offence under Sections 4 and 5 of the FCA and Article 101 of the Treaty on the Functioning of the European Union.117 The case is pending in the Market Court at the time of writing. V. Recent cartel cases 51. RPM has manifested itself in two ways. The company has set RPM for IKH products to IKH dealers as fixed in the Market Court resale price in the IKH online store, as well as required 56. Within the past two years the FCCA has also resellers in their other distribution channels to comply proposed penalty payments for two different cartels, one with the minimum resale price of IKH products.118 on the market for driving schools and one for the market Therefore, at least for the period from 16 February 2010 for expanded polystyrene insulation materials. to 20 February 2015, IKH set minimum resale prices for IKH products as recommended “guide retail prices” 57. The Market Court recently gave its decision on the and pressured dealers to comply with these prices. IKH cartel in the driving school market.125 The FCCA sought monitored the prices of its dealers and contacted sellers a penalty payment for two different infringements from whose prices were below its recommended prices. If the a regional trade association and eight different driving dealer failed to comply with the required price level, IKH schools.126 The investigated cartel related to an upcoming removed the company’s discounts, banned the use of the driving licence reform, which added new requirements IKH trademark, suspended deliveries and also terminated to obtaining a driving licence for regular passenger the dealer’s business cooperation agreement.119 cars. The first infringement was initiated through the regional trade association. The FCCA alleged that the 52. IKH has also required that resellers joining the IKH trade association and its board issued recommendations online store would comply with a fixed resale price for IKH to raise prices. These were especially done through products. Through the IKH online store, IKH and IKH organised local discussion sessions and training sessions. resellers sold IKH products at an agreed fixed resale price.120 The regional association organised a training session, which had as its topic “economic considerations / 53. FCCA ordered IKH to stop imposing a minimum profitable business” due to changes in driving licences. price on products to its resellers and making them agree on The need for this training was explained to be that a fixed resale price in the IKH online store. According to without guidance the driving school teachers would not the FCCA, resale price maintenance has affected the sale know how to incorporate the extra work brought by of IKH’s products throughout Finland. The infringement the new reform into their pricing.127 The Market Court, started in 2010 and still continues in some respects.121 however, did not find sufficient proof that the training sessions included any actual price recommendations.128 54. IKH has demanded the Market Court to suspend Nonetheless, the Market Court found that the regional the enforcement of the decision of the FCCA until the trade association had given price recommendations Market Court has resolved the main case, or alternatively by single emails with only one recipient129 and in a to suspend the enforcement of the FCCA’s decision until regional meeting that was organised on the behalf of 30 November 2020. The Market Court rejected IKH’s the regional trade association.130 The entire board of application to prohibit the execution of the FCCA’s the regional trade association was also considered liable decision at the end of September.122 for the infringement as they all were aware of the price 123 Ibid. 116 IKH, IKH in brief, https://www.ikh.fi/en/ikh/company/isojoen-konehalli-oy (last accessed 22 December 2020). 124 Ibid. 117 Isojoen Konehalli Oy supra note 111. 125 Market Court decision (Uudenmaan Autokouluyhdistys ry and others), MAO:548/20, Reference No. 2019/377, 15 December 2020. 118 Ibid., p. 4, para. 4. 126 FCCA penalty payment proposal (Uudenmaan Autokouluyhdistys ry and others), 119 Ibid., p. 5, para. 8. Reference No. KKV/54/14.00.00/2016, 21 November 2019. 120 Ibid.,p. 5, para. 9. 127 Ibid., paras. 28–29. 121 FCCA statement supra note 115. 128 Market Court decision (Uudenmaan Autokouluyhdistys ry and others) supra note 125. 122 Market Court interim decision (Isojoen Konehalli Oy), MAO:423/20, Reference 129 Ibid., paras. 110–111. No. 2020/257, 29 September 2020, available at https://www.markkinaoikeus.fi/fi/index/ paatokset/kilpailuasiat/kilpailuasiat/1602247526032.html (last accessed 22 December 2020). 130 Ibid., para. 115. Concurrences N° 1-2021 I International I Beata Mäihäniemi, Liisa Tarkkila I Finland: Enforcement of the Finnish Competition and Consumer Authority 2017–2020 9
You can also read