(CJEU) The General Court dismisses the action brought against a decision by the Commission to make binding on Gazprom commitments proposed by the latter in order to address competition concerns raised by the former in relation to the national markets for the upstream wholesale supply of gas in the countries of eastern and central Europe
Date of article: 02/02/2022
Daily News of: 04/02/2022
Country: EUROPE
Author: Court of Justice of the European Union
Article language: en
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The decision to approve those commitments is not vitiated by the procedural or substantive errors claimed by the applicant
Between 2011 and 2015, the European Commission took several measures in order to investigate the functioning of the gas markets in central and eastern Europe. In that context, it launched an investigation into Gazprom PJSC and Gazprom export LLC (together, ‘Gazprom’) in relation to the supply of gas in eight Member States, namely Bulgaria, the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland and Slovakia (‘the countries concerned’). On 22 April 2015, the Commission sent a statement of objections 1 to Gazprom, claiming that it was abusing its dominant position on the national markets for the upstream wholesale supply of gas in the countries concerned for the purpose of preventing the free flow of gas there in breach of Article 102 TFEU, which prohibits such abuse.
In the statement of objections, the Commission, more specifically, considered that Gazprom’s strategy involved three sets of potentially anticompetitive practices:
− first, Gazprom had imposed territorial restrictions in its gas supply contracts with wholesalers and certain industrial clients in the countries concerned (‘the objections concerning territorial restrictions’);
− second, those territorial restrictions had made it possible for Gazprom to pursue an unfair pricing policy whereby it charged excessive prices in five of the countries concerned, namely Bulgaria, Estonia, Latvia, Lithuania and Poland (‘the objections concerning pricing practices’);
− third, Gazprom had made its supplies of gas in Bulgaria and Poland conditional on its obtaining certain commitments from wholesalers in relation to gas transport infrastructure. Those commitments, in particular, concerned acceptance by the applicant, the Polish wholesaler Polskie Górnictwo Naftowe i Gazownictwo S.A., of Gazprom having increased control over the management of investments regarding the Polish section of the Yamal pipeline, one of the main gas transit pipelines in Poland (‘the Yamal objections’). In order to resolve those competition issues, Gazprom submitted formal proposed commitments to the Commission and, after receiving observations from interested parties, submitted revised proposed commitments (‘the final commitments’).