Finland: Enforcement of the Finnish Competition and Consumer Authority 2017-2020 (selected developments) - Concurrences

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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

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tractor spare parts, accessories, work clothing and                                             allegations of substantive and procedural errors in the

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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
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