4.3.2020

Sustainable development through competitor cooperation?

Can energy companies agree amongst themselves to wind down their coal plants? Can companies that use packaging materials coordinate a switch to recycled plastic even if it might drive up consumer prices?

As competition lawyers, we want to believe that competition drives companies towards sustainable development. Many consumers will choose a sustainable product or service as long as it is not more expensive than its alternative, while some are prepared to pay a premium for sustainability.

But what happens when the competitor who takes the first step ends up losing the competition? If there is no reward for blazing a trail, no one will take the risk. Change is not cheap, and despite their good intentions, consumers are often unwilling to open their purses any wider. This is particularly true with bulk goods.

So, should competitors work together to develop more responsible products and services? While this could benefit all of society, the danger is that this kind of cooperation would be seen to be a cartel or to otherwise be a violation of competition law.

Competition law does allow agreements that restrict competition as long as they provide consumers with efficiency benefits. Efficiency benefits include streamlining of production or distribution or technological or economic development. Based on the wording, one could fit the development of ecologically sustainable products or the abandonment of polluting technology under the umbrella of technological development. Case law does not pose an obstacle to this interpretation, either.

In competition law, efficiency benefits have been assessed from an economic perspective based on, for example, prices or output. As of yet, there is no case law or authority guidance on sustainability as an efficiency benefit. However, as the limits of the planet are fast approaching, the interpretation of law must keep up.

The European Commission will soon be updating its guidelines on cooperation between competitors. It could be worth it for parties submitting statements to the Commission to point out that cooperation between competitors could be an effective way to fight climate change.

Latest references

We are acting as the joint legal advisor to Oomi Oy and Lumme Energia Oy in a transaction whereby Lumme Energia will merge with Oomi. As from the completion of the merger, the combined entity will be the largest electricity retail and service company in the Finnish market. In 2024, Oomi reported a turnover of EUR 373.9 million and had approximately 110 employees. Lumme Energia’s turnover for the same year was approximately EUR 314.6 million and it had approximately 50 employees. The transaction is primarily driven by the recent developments in the electricity market and the strategic goal to develop competitive products and services. Another key objective is to further enhance the customer experience, which is a shared value between the two companies. As a result of the merger, Lumme Energia’s customers will transfer to Oomi, and Lumme Energia will become one of Oomi’s shareholders. The completion of the transaction is subject to an approval by the Finnish Competition and Consumer Authority.
Case published 29.8.2025
We assisted Oomi Oy in its expansion into the mobile telecommunications market with the launch of Oomi Mobiili, a new MVNO brand. Our work covered the preceding due diligence process as well as structuring and negotiating key partner agreements, laying a solid foundation for Oomi’s entry into the new market. Oomi Mobiili will operate as a virtual mobile network operator, offering customers the option to purchase a mobile subscription together with their electricity contract. The phased launch is set to begin in autumn 2025, with nationwide availability targeted for early 2026. 
Case published 15.8.2025
We are acting as the legal advisor to WithSecure Corporation in Diana BidCo Oy’s voluntary public cash tender offer for all the issued and outstanding shares in WithSecure. The tender offer values WithSecure’s total equity at approximately EUR 299 million. Diana BidCo is a private limited company incorporated and existing under the laws of Finland that will be indirectly owned by a consortium formed for purposes of the tender offer by certain affiliated funds of CVC Capital Partners Plc and Risto Siilasmaa. The consortium believes that the partnership strengthens and accelerates the road to WithSecure’s long-standing goal of becoming Europe’s most trusted cybersecurity partner by positioning the company to lead the next era of business cybersecurity. WithSecure’s shares are listed on the official list of Nasdaq Helsinki. WithSecure is a Europe-based cybersecurity company that helps protect businesses and is committed to strong partnerships with customers and collaborators. WithSecure’s customers trust WithSecure with outcome-based cybersecurity that protects and enables their operations. The completion of the tender offer is subject to the satisfaction or waiver by the offeror of certain customary conditions on or prior to the offeror’s announcement of the final results of the tender offer. The tender offer is currently expected to be completed during the fourth quarter of 2025. The Takeover Board of the Securities Markets Association issued on 4 August 2025 a new recommendation (1/2025) on good securities market practice that deals with the target company’s board of directors’ obligations in case of a consortium offer in which a major shareholder of the company participates in the consortium.
Case published 8.8.2025
We acted as Finnish legal advisor to HANZA AB in connection with its acquisition of the contract manufacturing division of Milectria, a group of companies specialising in electrical systems for the defence industry.  The transaction comprises 100% of the shares in Milectria Oy (Finland), Milectria OÜ (Estonia), and the real estate company Kiinteistö Oy Kanungin Karhu. The transaction is expected to close in September 2025, subject to customary closing conditions, including regulatory approvals.  Founded in 2008, HANZA is a Swedish mechanical engineering and electronics contract manufacturing company listed on the Nasdaq Stockholm main list. The company operating in seven countries currently has annual sales of approximately SEK 6 billion and approximately 3,100 employees. Milectria is a Finnish contract manufacturer of electrical systems for the defence industry.
Case published 21.7.2025