IFLR 1000
The Guide to the World's Leading Financial Law Firms

The legal market for European competition firms is a large one. The focus is on the ability of firms to handle complex cases across the board before the European Commission Directorate General for Competition ('D-G Comp') and hence many firms have adopted a strong central hub office in Brussels, with a network of offices in other jurisdictions....

The legal market for European competition firms is a large one. The focus is on the ability of firms to handle complex cases across the board before the European Commission Directorate General for Competition ('D-G Comp') and hence many firms have adopted a strong central hub office in Brussels, with a network of offices in other jurisdictions.

The market has changed in recent years. The disappearance of the tier two ranked Howrey and redistribution of the senior Howrey lawyers has given a boost to certain in firms, not least Convington & Burling, which moves up to tier three this year and which with many commentators rate alongside tier two firms. There has also been a noted push from US firms to enter the European competition market in an attempt to win market share and entice US clients away from the big Brussels' players. New entrant Cadwalader Wickersham & Taft recruited Linklaters' senior lawyer Alec Burnside, while West Coast US firm Wilson Sonsini Goodrich & Rosati recruited Götz Drauz (from Howrey then, briefly, Shearman & Sterling) and senior lawyers from Hunton & Williams.

These entrances are being monitored by peers but without some scepticism. "Some good new US firms with good people but very small... often it take the first year of not having much to do and it takes time, it's a case of long term investment," says a lawyer. Some local lawyers are also wary, having seen large investments from US firm in the past fail. The new players will also have to wrestle clients free from established relationships.

US firms do argue however that increasing transatlantic deal traffic and the fact that the US economy has picked up quicker than Europe's, which may boost US originated merger control deal flow, will benefit US firms. European firms, such as Allen & Overy, have also been opening or boosting teams in the US. "All major cases these days are transatlantic… when you get big clients in Europe they are often subject to litigation in the US so it is silly to lose clients and revenue," says a partner. Jones Day, Gibson Dunn & Crutcher, Sidley Austin and Latham & Watkins have all recruited or made moves to boost their Brussels teams.

Another impediment may be capacity, as firms argue that size increasingly matters as cases become more complex and authorities demand more documentation and evidence in investigations.

CONTEXT AND TRENDS The European competition market consists of merger control, article 101cartel investigations, article 102 abuse of dominance and behavioural cases and state aid. On the article 101 cartel and 102 dominance front "there has been no let up" says a lawyer, although another notes that the number of decisions reached has dropped....

The European competition market consists of merger control, article 101cartel investigations, article 102 abuse of dominance and behavioural cases and state aid.

On the article 101 cartel and 102 dominance front "there has been no let up" says a lawyer, although another notes that the number of decisions reached has dropped. The last two biggest cartel investigations took place in the freight forwarding and air cargo sectors, while there are significant current investigations by the EC (European Commission) into areas such as LCD screens, financial services (credit default swaps and Libor), IT, software and e-books. IT and technology in particular has created high profile cases, most notably in the field of standard essential patents, which have created complex disputes involving Apple, Samsung and Google.

The EC has tried to encourage settlement in this area and has so far had come success, with four or five cases already being settled out of court. The settlement procedure allows a company to admit guilt for an immediate 10% reduction in the fine, but it also allows for a lot more negotiation surround the terms of the fine.

The EC has also been encouraging private damages claims either from competitors that suffered from the cartel or associations representing consumers that have lost out from cartel price fixing. This development is changing the market in the sense that litigation in national courts related to EU Competition cases is increasing. "You used to get fined or not fined, but in addition to that now there are cases defending cartels against the purchasers of cartel products suing for damages, especially in the UK, Germany and the Netherlands," says a lawyer. On the merger control side, there is a general consensus that although M&A volume is down, competition work related to merge control is steady or higher. "Actually there has been a huge increase in M&A work because the transactions that are happening are complex and in sectors with a high degree of market concentration... and driven by market consolidation," says a peer, citing cases such as Deustche Borse and NYSE Euronext, Glencore and Xtrata, EMI (which sold its music publishing and recording businesses) and Rosneft alliance, among others. Other highlight M&A have included Microsoft's acquisition of Skype, which was appealed by Cisco.

State Aid has continued to be active and one of the ongoing highlight cases in this field has involved Belgium banking group Dexia.

MAJOR LATERAL HIRES

Alec Burnside
From: Linklaters
To: Cadwalader Wickersham & Taft

Johan Ysewyn
From: Linklaters
To: Clifford Chance

Renato Antonini
From: Van Bael & Bellis
To: Jones Day

Eric Barbier de La Serre
From: Latham & Watkins
To: Jones Day

Simon Pritchard
From: Allen & Overy (London office)
To: Linklaters (London office)

Robert Klotz
From: Hunton & Williams
To: Mayer Brown

Assimakis Komninos
From: Hellenic Competition Commission
To: White & Case

Götz Drauz
From: Shearman & Sterling
To: Wilson Sonsini Goodrich & Rosati

Paul McGeown
From: Hunton & Williams / European
Commission
To: Wilson Sonsini Goodrich & Rosati

Michael Rosenthal
From: Hunton & Williams
To: Wilson Sonsini Goorich & Rosati

MAJOR LEGISLATION CHANGES

Private Damages Actions
Pending – with the European Commission

Best Practice Guidelines
Published in October 2011

Arnold & Porter
Luc Gyselen
Annette Schild

Baker & McKenzie
Gavin Bushell

Freshfields Bruckhaus Deringer
Onno Brouwer
Alan Ryan

Garrigues
Luis Ortiz Blanco

Hogan Lovells
Catriona Hatton
Paris Anestis

Latham & Watkins
Jean Paul Poitras

Linklaters
Jonas Koponen

O'Melveny & Myers
Christian Riis-Madsen

Stibbe
Hendrik Viaene

Van Bael & Bellis
Porter Elliott
Andrzej Kmiecik
Markus Wellinger

White & Case
James Killick