Brussels, 09/03/2010 (Agence Europe) - On Tuesday 9 March, the European Parliament in Strasbourg called for review of the strategy on fines imposed on companies for failing to comply with competition rules, and for further inquiries to be carried out on online advertising and on the distribution chain for dairy produce, with adoption of the report by Sophia in't Veld (ALDE, NL) on the report on competition policy 2008.
The EP wonders “to what extent state aid granted to the financial market has caused distortions of competition”. It calls for an independent report to be drawn up about the potential distortive effects of state intervention in the financial sector. It also states its concern about the subsidies and distortions generated by the guarantees on bank funding granted by member state governments.
According to the members of the House, the crisis has “brought home the urgent need for an EU framework for cross-border crisis management in the financial sector” including a solution for the “too big to fail” institutions; quick and full implementation of the recommendations of the de Larosière report, including a single European regulator; and a deposit guarantee system and bail-out fund or equivalent system.
Furthermore, the Commission is invited to publish, during the course of 2010, a comprehensive report on the effectiveness of state aid granted for “green recovery”' (bringing about a substantial shift towards sustainability, in particular in the automotive sector) and state aid for environmental protection.
Antitrust. The EP welcomes the very firm stance the Commission has taken on anti-competitive behaviour in recent years. It states it is concerned that the use of “ever higher fines as the sole instrument may be too blunt, not least with a view to potential job losses as a result of the inability to pay”. It also calls for the development of a wider range of more sophisticated instruments, covering among other things: - individual responsibility, transparency and accountability of firms, shorter procedures, the right of defence and due process, mechanisms to ensure the effective operation of leniency applications (in particular to overcome the interference caused by discovery processes in the US); - as well as corporate compliance programmes and the development of European standards. The EP favours a “carrot and stick” approach with penalties that serve as an effective deterrent, in particular for repeat offenders, while encouraging compliance.
Sector inquiries. The EP calls for sector-specific inquiries to be opened into online advertising and relations between the producers of agricultural goods (in particular dairy produce), intermediate purchasers, major distributors and end consumers; as well as into the food industry and especially the distribution chain for dairy produce. It highlights the need to improve competition in the pharmaceutical sector by taking the appropriate measures to “to fight those practices of the pharmaceutical enterprises that may result in delaying or blocking the entry of generic products on the market”. MEPs state their concern regarding the fact that there is insufficient competition in the telecommunications sector. Finally, the Parliament reiterates its call for an inquiry into the application of public procurement rules, and into whether national differences lead to a distortion of competition. (L.C./transl.jl)