In times like these, parties should consider the key parameters of a contemplated transaction even more carefully. In addition to factors such as pricing, process timelines and contractual undertakings, parties must properly consider the COVID-19 pandemic's potential economic effects on targets when structuring a deal. This article outlines the differences between the two main purchase price mechanisms that can help to alleviate such economic effects and the pros and cons of each.
For the first time, the Supreme Court has upheld a security right granted under German law, even though the asset had been transferred to Austria. Previously, such rights were terminated once the asset was moved from Germany to Austria. The decision will substantially facilitate the financing of companies with cross-border business.
The Constitutional Court recently ruled on whether the Squeeze-Out Act is compatible with the Constitution. The plaintiff argued that certain provisions of the Squeeze-Out Act violate the Constitution because they restrict shareholders' property rights and the principle of equality (rights enshrined in both the Constitution and the European Convention on Human Rights). However, the Constitutional Court held that this was not the case.
Companies regularly store information about their customers, clients, employees, investors, partners and vendors. Privacy and data security are therefore important aspects of most M&A transactions. Although the risk of non-compliance with privacy laws may result in severe negative consequences, many M&A agreements still lack adequate privacy-related representations and warranties.
In 2014 the Austrian Supreme Court submitted a request to the European Court of Justice (ECJ) for a preliminary ruling on the interpretation of EU law regarding cross-border mergers. The ECJ recently ruled that in cases of merger by acquisition, all contracts entered into by the transferor company pass to the acquiring company without novation. Thus, the law applicable to the contracts before the merger also applies to the underlying contracts after the merger.
EU Regulation 2017/460 established a network code on harmonised transmission tariff structures (TAR NC). On 31 January 2019 E-Control – Austria's national regulatory authority – published its consultation document on the implementation of the TAR NC in Austria. This article discusses the subsequent developments.
The new government composed of the Austrian People's Party and the Green Party recently presented the government programme for 2020 to 2024, which contains comprehensive measures to promote the expansion of renewable energies. Accordingly, the Renewable Energies Expansion Act, which has been planned for a long time and was drawn up under the penultimate government, is to be enacted as quickly as possible.
The Supreme Court recently considered whether distribution network operators must provide network users with a written cost estimate for a grid connection even if the general obligation to connect final customers to the grid is still in dispute and has yet to be decided by the competent authority. The case has clarified whether a network operator's obligation to provide a cost estimate presupposes that its connection obligation is undisputed or has already been legally established.
The Higher Administrative Court recently found that the operation of an electric filling station does not constitute the operation of an electricity company and is thus subject to Trade Act. Prior to this decision, the question of whether the act applies to such stations was unclear, as there was no relevant case law and the legal literature was divergent.
The information assessed when preparing the latest Flexibility and Storage Market Report on the Austrian gas market suggests that the current competitive situation does not require regulated access to storage facilities. The sufficient availability of storage capacity, customer-oriented product development, market-oriented price formation and offered quantities form a market characterised by competitive pressure.
Section 3 of the Administrative COVID-19 Accompanying Law adapts the requirements for official acts and public communication with authorities to reflect the restricted freedom of movement and contact. This article examines how the revised version of Section 3 affects environmental law procedures (eg, water, environmental impact assessment, waste, construction and conservation).
In the context of local and personal COVID-19 quarantine measures – and the associated absences of officials and affected persons – a federal law (COVID-19-VwBG) was passed setting out special procedural regulations for administrative authorities, administrative courts, the Supreme Administrative Court and the Constitutional Court. This article discusses the implications for the legal procedures set out in the Environmental Law resulting from the new temporary COVID-19-VwBG.
Austria's new coalition government consisting of the People's Party and the Green Party recently published its programme for the legislative period 2020 to 2024. The programme is called Taking Responsibility for Austria and should make Austria a pioneer in climate protection. The Paris Agreement climate targets are to be met at all costs, while the Climate Protection Act should ensure that Austria does not exceed its CO2 budget.
Following a European Court of Justice decision concerning the air quality measurement criteria set out in the EU Air Quality Directive, individuals in affected areas and non-governmental organisations can now take direct action in Austria against wrongfully installed air quality measuring points. The Austrian Higher Administrative Court recently addressed this matter and explained how those concerned in Austria should proceed.
The Constitutional Court recently dealt with a complaint by an electric vehicle owner who had exceeded an Air Immission Protection Act speed limit. The driver claimed that his vehicle emitted no air pollutants and that the emission-dependent speed limit did not apply to him. The court disagreed. In response to this decision, the federal government created a legal exception for electric cars. However, whether all federal states will introduce an exception to the act's speed limit for electric cars remains unclear.
Until 2018, Austria had up to five different cancellation rights for insurance policyholders, plus the cancellation right pursuant to Section 8 of the Distance Financial Services Act. Thus, the legal situation was confusing. However, this has finally changed. Since 1 January 2019, a new Section 5c of the Insurance Contract Act provides for one unified cancellation right.
The Financial Market Authority (FMA) recently published a new circular concerning key information documents for packaged retail and insurance-based investment products. The FMA had already published a revised version of its circular on sound remuneration policies and practices on January 19 2018.
More than four years after the entry into force of the new EU Public Procurement Directive, more than two years after the deadline for transposition and more than one year after publication of the first transposition draft, the time has come. Following the resolutions of the Council of Ministers and the Federal Council, it can be assumed that the Federal Procurement Act 2018 will enter into force by July 2018.
Almost one year after the two-year transition period of the EU directives on public procurement law expired, Austria published a consultation draft of the new Federal Procurement Act 2017 to implement the directives. While Austria took a somewhat conservative approach when implementing the directives, there are some areas where the Austrian draft for the transposition of the directives is significantly stricter than the directives themselves.
The Federal Administrative Court recently addressed whether the party to a winning project in a conflict procedure was entitled to claim rights in the environmental impact assessment for the inferior project. The court ruled that, on the one hand, the legal standing of a party in a conflict procedure is not strictly restricted to that procedure. On the other hand, the court found that being party to a conflict procedure does not guarantee unlimited legal standing in the approval procedure of the other project.
The regulation increasing the Procurement Act's thresholds has been extended for a further two years. Thus, contracting public authorities can continue to benefit from the significantly wider application of the direct award procedure and the so-called 'restricted procedure without prior publication' until 2018. However, contracting authorities should be aware that the Treaty on the Functioning of the European Union may still require an ex ante notice for contracts of a certain cross-border interest.
The two-year transition period for implementing the new EU directives on public procurement recently lapsed. While the majority of member states have at least partially implemented the directives, Austria has yet to pass draft legislation transposing any of them. However, despite this, the directives (at least in significant parts) already apply in Austria and individuals can – either directly or indirectly – rely on the majority of the provisions therein.