General principles and regulation

General principles

EU competition law and extraterritoriality

The European Commission jurisdiction to prosecute antitrust infringements committed outside of the European Economic Area (EEA) by non-EEA-based undertakings has been the subject of much debate.

Although EU Treaties do not provide specific guidance on the extraterritorial reach of EU competition rules, the Court of Justice has over time devised a number of tests to determine whether, in a given case, the Commission has appropriate jurisdiction. These tests are:

  1. the single economic entity doctrine that enables the Commission to assert jurisdiction over the parent company of a subsidiary located and engaged in illegal activity within the EEA

  2. the implementation doctrine that focuses on the extent to which the anti-competitive conduct has been implemented in the EEA, and

  3. the qualified effects doctrine, whereby the Commission needs to show that the conduct had substantial, immediate, and foreseeable effects in the EEA.

For more information, see Practice Note: Extraterritorial application of EU competition law.

Effect on trade

‘Effect on trade’ is a jurisdictional test which determines whether EU or national law is applicable to potentially anti-competitive

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Automated decision-making and DSARs: right to access means a right to explainability (CK v Magistrat Der Stadt Wiendun & Bradstreet Austria GMBH)

Information Law analysis: The Court of Justice provided several clarifications around the scope of data subject access requests (DSARs) in the context of automated decision-making. The court held the determining factor for whether information constitutes ‘meaningful information about the logic involved’ under Article 15(1)(h) of the EU’s General Data Protection Regulation, Regulation (EU) 2016/679 (EU GDPR) is whether the information enables the data subject to understand the logic involved in automated decision-making involving their personal data. The court also held disclosure by controllers should be underpinned by the principles of transparency, which requires information to be clear, accessible and intelligible, both in terms of content and form, from the perspective of data subjects. In the context of automated decision-making this doesn’t necessarily mean providing the exact algorithm, if it doesn’t help the data subject’s understanding of the ‘how’. The court confirmed DSARs do not mandate the disclosure of trade secrets, but this can only be decided by the relevant supervisory authority or competent court, after assessing all relevant information provided to them by a controller. The protection of trade secrets cannot be used as a blanket excuse by businesses to withhold certain information from individuals making a request under Article 15(1)(h) of the EU GDPR. Written by Marija Nonkovic, associate at Kemp IT Law LLP.

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