UK Competition Minister Wants National Authorities In The Driving Seat

by Jason Gorringe, for LawAndTax-News.com, London

07 April 2003

The UK's Department of Trade and Industry (DTI) has launched a consultation on the modernisation and reform of European competition law.

The proposals, published by Competition Minister, Melanie Johnson, aim to shift the balance of power more towards national competition authorities and courts. Outlining the reasoning behind the proposals, Ms Johnson explained that:

'The 'modernisation' of European competition law is good news for businesses across Europe. For the first time, it breaks the Commission's monopoly on granting exemptions under Article 81 and it places national competition authorities and courts in the driving seat for much of competition law enforcement.'

She continued:

'Modernisation also ensures that, where there is an effect on inter-state trade, an agreement in one member state will be treated in exactly the same way as (in) any other.'

Under the terms of the proposals, the system of notifications under which companies must notify their restrictive agreements to the Commission in order to obtain an exemption under Article 81(3) and legal certainty of their validity would be replaced by a system of 'legal exceptions'.

Power to apply Articles 81 and 82 would be devolved to national competition authorities and courts, and the Commission's powers of investigation and sanction would be extended. In order to facilitate cooperation and the exchange of information between EU member states, a European Competition Network has been established, according to the consultation document.

Comment is invited on the proposals until June 27, 2003, and the department aims to publish details on the outcome of the consultation by September 30.

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