KIRKLAND ALERT | 4 unlawful state aid. In the case of Starbucks and Fiat (part of Fiat Chrysler), the EC has found that prices for goods and services sold intra-group were set at levels that did not correspond to market conditions, enabling profits to be shifted and escape taxation. Starbucks and Fiat are early examples — cases are ongoing against a number of companies. Where there is a ruling of unlawful state aid, the beneficiary of the aid is required to repay it, with interest. FINAL COMMENT – Leaving aside the impact on U.S.

companies who operate in the sectors of interest to the Competition Commissioner, the EC’s most politically controversial move on the antitrust stage this year has been against Russia. In April it issued an SO against Gazprom. Beyond the lawyers and economists who usually attend the oral hearing, Alexander Medvedev himself attended Gazprom’s hearing, underlining the political sensitivity around the case. In her first full year as Competition Commissioner, Margrethe Vestager has shown herself to be unafraid of big companies, big decisions and controversy. Thus, in her first full year as Competition Commissioner, Margrethe Vestager has shown herself to be unafraid of big companies, big decisions and controversy.

Equally, however, the EC cannot proceed oblivious to the response from outside Europe, and we anticipate that the Commissioner will continue to look to find resolutions where feasible, so that not every case ends up with major penalties and appeals to the European court. In particular, all eyes will be on Google and whether a resolution to that case is achievable. More generally, we expect e-commerce and tech to continue as the major focus this year, closely reflecting the digital agenda of the European Commission. If you have any questions about the matters addressed in this Kirkland Alert, please contact the following Kirkland authors or your regular Kirkland contact. Paula Riedel Kirkland & Ellis International LLP 30 St Mary Axe London EC3A 8AF United Kingdom www.kirkland.com/priedel +44 20 7469 2470 Sarah Jordan Kirkland & Ellis International LLP 30 St Mary Axe London EC3A 8AF United Kingdom www.kirkland.com/sjordan +44 20 7469 2260 James H. Mutchnik, P.C. Kirkland & Ellis LLP 300 North LaSalle Chicago, IL 60654 www.kirkland.com/jmutchnik +1 312 862 2350 This communication is distributed with the understanding that the author, publisher and distributor of this communication are not rendering legal, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, assume no liability whatsoever in connection with its use.

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