SWD(2016)0070

The Commission presents a report on the ten years of antitrust enforcement under Regulation 1/2003: Achievements and Future Perspectives.

Regulation 1/2003 was a landmark reform which comprehensively overhauled the procedures for the application of Articles 101 and 102 TFEU ("EU competition rules").

The Regulation: (i) introduced an enforcement system that is based on the direct application of the EU competition rules in their entirety; (ii) empowered Member States’ competition authorities ("NCAs") and national courts to apply all aspects of the EU competition rules, in addition to the European Commission; (iii) introduced new, close forms of cooperation between the Commission and NCAs, notably in the framework of the European Competition Network ("ECN").

This Communication: (1) provides a facts based review of public enforcement during this period by the Commission and the NCAs; and (2) examines some key aspects of enforcement by the NCAs, in particular institutional and procedural issues , with a view to its further enhancement.

The communication concludes that the enforcement of the EU competition rules has considerably increased as a result of the achievements of the Commission, the ECN and the NCAs. ( 1) The Commission has a strong enforcement record , investigating an important number of cases and carrying out inquiries in key sectors of the economy. The sector most investigated by the Commission and the NCAs is basic and manufacturing industries (42 and 92 decisions, respectively). This largely reflects the prioritisation of the fight against cartels which have mostly been detected in this sector.

Both the Commission and the NCAs have concentrated on recently liberalised sectors or sectors in the process of liberalisation, such as telecoms, media, energy and transport, which are often characterised by high market concentration and/or the presence of dominant operators.

(2) The Commission has provided guidance for stakeholders, NCAs and national courts. After having adopted a series of notices on a range of substantive and procedural matters, it subsequently adopted revised block exemption regulations and accompanying guidelines concerning the application of Article 101 TFEU to horizontal, vertical and technology transfer agreements. Moreover, the Commission issued a guidance paper on its priorities in the application of Article 102 TFEU to exclusionary abuses. It also adopted new guidelines on setting fines, a new leniency notice, a notice on settlements in cartel cases, an information note on inability to pay and a notice on best practices in antitrust cases.

(3) There has been a dynamic development of close cooperation within the ECN , which has underpinned the coherent application of the EU competition rules throughout the EU.

The ECN has developed into a multi-faceted forum for exchanges of experience on the application of substantive competition law as well as on convergence of procedures and sanctions.

(4) NCAs have become a key pillar of the application of the EU competition rules . Similar to the Commission, the NCAs also concentrated their enforcement efforts on cartels (27%). In addition, the NCAs tackled a significant number of other horizontal practices (19%), including stand-alone exchanges of information where the information exchange did not form part of a broader cartel agreement. The NCAs were also very active in addressing vertical practices (27%), in particular, resale price maintenance, anti-competitive forms of exclusive distribution and exclusive purchasing and restrictions of parallel trade.

In order to build on these achievements to create a truly common competition enforcement area in the EU, the Commission considers it necessary, in particular, to:

further guarantee the independence of NCAs in the exercise of their tasks and that they have sufficient resources; ensure that NCAs have a complete set of effective investigative and decision-making powers at their disposal; and ensure that powers to impose effective and proportionate fines and well-designed leniency programmes are in place in all Member States and consider measures to avoid disincentives for corporate leniency applicants.

The Commission will further assess appropriate initiatives to best achieve these goals.

COM(2014)0453
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EUR-Lex
SWD(2014)0230

EUR-Lex
SWD(2014)0231

The purpose of this Communication is to report on the functioning of Council Regulation (EC) No 1/2003.

Council Regulation (EC) No 1/2003, the keystone of the modernisation of the European Union's antitrust enforcement rules and procedures, entered into application on 1 May 2004. Article 44 of the Regulation provides that the Commission shall by 1 May 2009, i.e. after five years of application, report to the European Parliament and the Council on its functioning.

The Regulation was the result of the most comprehensive reform of procedures for the enforcement of Articles 81 and 82 EC since 1962. Its main features are:

the abolition of the practice of notifying business agreements to the Commission; the empowerment of national competition authorities and courts to apply EC antitrust rules in their entirety; a more level playing field for businesses operating cross-border; close cooperation between the Commission and national competition authorities in the European Competition Network (ECN); enhanced enforcement tools for the Commission.

The report is a stock-taking exercise, the aim of which is to understand and assess how modernisation of the EC antitrust enforcement rules has worked during the first five years. It is to be read in conjunction with the accompanying Commission Staff Working Paper which contains a more detailed review.

The report concludes that Council Regulation (EC) No 1/2003 has brought about a landmark change in the way the European competition law is enforced. The Regulation has significantly improved the Commission's enforcement of Articles 81 and 82 EC. The Commission has been able to become more proactive, tackling weaknesses in the competitiveness of key sectors of the economy in a focused way.

In addition, the EC competition rules have, to a large extent, become the “law of the land” for the whole of the EU. Cooperation in the ECN has contributed towards ensuring their coherent application. The network is an innovative model of governance for the implementation of Community law by the Commission and Member State authorities.

In a limited number of areas, the report highlights aspects which merit further evaluation, but leaves open the question of whether any amendment to the existing rules or practice is required. It will serve as a basis for the Commission to assess, in a further stage, whether it is appropriate to take further policy initiatives.

Amongst the questions to the examined include, inter alia: the use made by the Commission of its new or revised powers for effective enforcement; how to streamline the handling of complaints that do not give rise to priority cases; how to improve the procedures concerning fines and infringements; leniency policy; the power of national competition authorities to make observations; clarify and reinforce the legal framework to further enhance existing levels of protection against disclosure.

COM(2009)0206
EUR-Lex

The Commission presents this Staff Working Paper accompanying the Communication from the Commission on the report on the functioning of Council Regulation (EC) No 1/2003.

Council Regulation (EC) No 1/2003 entered into application on 1 May 2004. Article 44 of the Regulation provides that the Commission shall by 1 May 2009, i.e. after five years of application, report to the European Parliament and the Council on its functioning.

The Regulation was the result of the most comprehensive reform of antitrust procedures since 1962. Its key objectives are effective and coherent enforcement of the EC antitrust rules in the interests of consumers and businesses, while bringing about a more level playing field and reducing red tape for companies operating in Europe.

This Staff Working Paper, which accompanies the report on the functioning of the Regulation, examines the following issues:

the system change from the notification system to direct application of Article 81(3) EC; how the Commission has used the tools provided by the Regulation for effective enforcement in its enforcement procedures; how the Regulation has led to more level playing field through the application of EC competition law; the enforcement of Articles 81 and 82 EC by national competition authorities and cooperation in the ECN; the interaction of the Commission with national courts; certain aspects of the interface with third country enforcement.

The aim of the report is to understand and assess how modernisation of the EC antitrust enforcement during the first five years has worked. The report concludes that the Regulation has brought about a landmark change in the way the European competition law is enforced; it has significantly improved the Commission's enforcement of Articles 81 and 82 EC. The Commission has been able to become more proactive, tackling weaknesses in the competitiveness of key sectors of the economy in a focused way. Moreover the Regulation has entrusted the Member States’ competition authorities and courts with the role of ensuring that the EU competition rules are applied efficiently and effectively, in conjunction with the Commission.

In addition, the EC competition rules have, to a large extent, become the “law of the land” for the whole of the EU. Cooperation in the European Competition Network (ECN) has contributed towards ensuring their coherent application. The network is an innovative model of governance for the implementation of Community law by the Commission and Member State authorities.

Lastly, in a limited number of areas, the report highlights aspects which merit further evaluation, but leaves open the question of whether any amendment to the existing rules or practice is required. It will serve as a basis for the Commission to assess, in a further stage, whether it is appropriate to take further policy initiatives.

SEC(2009)0574
EUR-Lex

The Commission decided on 13 June 2005 to initiate a sector inquiry into the provision of insurance products and services to businesses in the Community, based on Article 17 of Council Regulation (EC) No 1/2003. Taking into account indications that competition in this sector within the common market may be restricted or distorted, the sector inquiry aimed at further investigating the sector and the practices concerned with a view to ultimately identifying any concrete restrictive practices or distortions of competition that may fall within the scope of Articles 81 or 82 of the Treaty. Business insurance includes, inter alia , coverage for property risks and business interruption; shipping; motor vehicles; general, professional and environmental liability; personal accidents and credit risks.

This document is the final report of the business insurance sector inquiry, and is released together with a comprehensive working document of the Commission's services containing the full findings (the Working Document).

The sector inquiry identified three key issues that will need to be followed up by the

Commission and/or national authorities:

certain practices leading to premium alignment when coinsurance and reinsurance is purchased through a two-step procedure involving a lead and following (re)insurers; instances where a pervasive market practice of long-term contracts may lead to cumulative foreclosure; and indications of potential market failure in respect of insurance brokerage.

The Commission invites the parties concerned by the various issues identified to carry out their own assessment and to engage in a dialogue with a view either to clarifying whether or not these practices are compatible with competition law, and/or to reviewing the practices in question.

The Commission states that will not hesitate to make use of its enforcement powers under competition law if necessary. Clearly, any possible enforcement procedures would require a full examination of the specifics of each case in consultation with the national competition authorities. The Commission also invites market participants to come forward with further evidence of abusive practices, on a confidential basis if necessary.

In respect of insurance brokerage, the Commission intends to look at these issues anew in the framework of the review of the Insurance Mediation Directive, but also invites Member States and industry participants to review the Commission's findings and propose appropriate action themselves.

Lastly, in respect of the Block Exemption Regulation, the sector inquiry has not produced compelling reasons, as regards business insurance, to prolong it beyond 2010. However, the Commission will review this matter definitively in view of a report by March 2009 as the enabling legislation requires.

EUR-Lex
COM(2007)0556

SEC(2007)1231
EUR-Lex

On the basis of Article 17 of Regulation 1/2003/EC on retail banking, the Commission initiated an inquiry into retail banking. According to this provision the Commission may decide to conduct an inquiry into a particular sector of the economy or into particular types of agreements across various sectors, where the trend of trade between Member States, the rigidity of prices or other circumstances suggest that competition may be restricted or distorted within the common market. This document is the final report of the retail banking inquiry.

The sector inquiry has identified a number of symptoms suggesting that competition may not function properly in certain areas of retail banking The inquiry has confirmed that markets remain fragmented along national lines, including in retail banking infrastructures such as payment systems and credit registers.

This sector inquiry identified four key issues that will need to be followed up by the Commission and national competition authorities:

• the design and operation of payment systems, including card payment systems: the European payment cards industry provides the means for a significant part of sales in Europe. Total sales volumes with card transactions in the EU in 2005 were more than EUR 1350 billion. The sector inquiry has identified several significant competition issues in the European payment cards market that confirm the need for strong competition law enforcement in close cooperation with national competition authorities;

• credit registers: open and affordable access to good quality credit data is an important prerequisite for banks wishing to provide core retail banking products such as mortgages, consumer loans and credit cards. However, widespread credit data are not available in several Member States, whether because of regulation or the limited development of credit data markets;

• cooperation between banks: retail banks co-operate in a variety of areas such as the setting of standards and infrastructures or the operation of payment systems. Savings and cooperative banks traditionally have even closer co-operative ties. Co-operation between banks can result in economic and consumer benefits. It usually does so where the banks involved are SMEs and jointly do not possess a significant market share. Where independent banks with a significant combined market position enter into cooperation with the object or effect of limiting competition among themselves or excluding new entrants, however, effective competition can be impeded;

• the setting of banks' prices and policies, including product tying: prices for retail banking products vary substantially across Member States. However, the inquiry has found that at national level there is evidence of convergent behaviour in pricing and policies for core retail banking products. In current accounts such convergent behaviour can be seen in relation to the setting of several parameters including account management fees, closing charges, ATM fees and default charges. Product tying is an additional aspect where banks in the majority of Member States demonstrate convergent behaviour. Tying can weaken retail banking competition by raising switching costs, reducing price transparency and discouraging the entry of new players (especially mono-line suppliers).

The European Commission will not hesitate to exercise its powers of enforcement under Articles 81, 82 and 86 EC, to ensure that the competition rules are respected in retail banking; and with respect to the various payment markets and the SEPA (Single European Payment Area) project in particular. The European Commission will also continue its efforts in fields other than competition law to further increase the benefits of the internal market in retail banking to its citizens.

COM(2007)0033
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Regulation 2003/1
OJ L 001 04.01.2003, p. 0001-0025

2433

2394

T5-0444/2001
OJ C 072 21.03.2002, p. 0236-0305 E

T5-0444/2001

Debate in Parliament

A5-0229/2001

A5-0229/2001

2347

CES0410/2001
OJ C 155 29.05.2001, p. 0073

2318

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OJ C 365 19.12.2000, p. 0284 E
COM(2000)0582

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COM(2000)0582