EU Launches Public Consultation On Keystone Antitrust Regulation

by Ulrika Lomas, Tax-News.com, Brussels

29 July 2008

The European Commission on Thursday launched a public consultation on the functioning of the Council Regulation (1/2003) that sets out the rules for the Commission's enforcement of EC Treaty antitrust rules.

This Regulation, which took effect on 1st May 2004, also entrusts national competition authorities and courts with the role of applying the EU antitrust rules, meaning that there is wide-spread enforcement of the same set of rules to prosecute cartels and other anti-competitive practices throughout Europe.

The Commission is looking for views on all aspects of its implementation in practice.

Regulation 1/2003 was the result of the most comprehensive reform of antitrust procedures since 1962.

Its key objectives are more effective enforcement of 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.

The Commission will use the results of the consultation to prepare the report on the functioning of Regulation 1/2003, which should be presented to the European Parliament and the Council by 1st May 2009. Interested parties are invited to submit their comments by 30th September 2008.

Regulation 1/2003 was a landmark reform, amounting to the most far-reaching overhaul of the EC antitrust procedures in more than 40 years.

It modernised the procedural rules embodied in Council Regulation 17 of 1962, which govern how the EC Treaty's provisions on anti-competitive agreements (Article 81 of the EC Treaty) and abuses of dominant position (Article 82 of the EC Treaty) are enforced. Regulation 1/2003 is the legal basis of the Commission's investigation powers.

It enables the Commission to impose fines for violations of EC antitrust law and to exchange information and coordinate enforcement action with national competition authorities.

Regulation 1/2003 simplified and strengthened antitrust enforcement by a number of key measures:

• The abolition of the practice of notifying business agreements to the Commission, thereby ending bureaucracy and legal costs for companies and enabling the Commission to focus its resources on the important fight against cartels and other serious violations of the law that are truly harmful to competition.
• Empowerment of national competition authorities and courts to apply EC antitrust rules in an effective manner, so that there are multiple enforcers.
• More level playing field for businesses operating cross-border as all competition enforcers, including the national competition authorities and national courts, are obliged to apply EC antitrust rules to cases that affect trade between Member States.
• Close cooperation between the Commission and national competition authorities in the European Competition Network (ECN).
• Enhanced investigation tools for the Commission so that it is better equipped to detect breaches of the antitrust rules.

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