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Europe Daily Bulletin No. 7706
Contents Publication in full By article 12 / 52
GENERAL NEWS / (eu) eu/competition

Commission publishes drafts for new exemption regulations "by category" in favour of horizontal agreement between companies

Brussels, 27/04/2000 (Agence Europe) - The European Commission published, this Thursday, the draft regulations and guidelines concerning the "horizontal" cooperation agreements between competitors, that is to say the agreements between companies operating at the same market level. The interested parties have until 29 May to present their observations before the final adoption of the texts, which have already been submitted last 22 and 23 February to the Member States consultative committee in terms of agreement and dominant positions. The regulations and guidelines will enter into force in 2001, replacing the present texts that expire on the 31 December 2000 (see EUROPE of 22 January, p.11).

It concerns three drafts concerning the implementation of Treat Article 81 (agreements), that is to say: i) an exemption regulation for specialisation agreements, ii) an exemption regulation for the research/development agreements, iii) the guidelines on the applicability of Article 81 to horizontal cooperation (for example, agreements for the group acquisition or joint venture).

They will replace two exemption regulations by existing categories (concerning the research and development agreements and the specialisation agreements) and two interpretative notices (concerning in particular co-operative joint ventures).

The main modifications will relate to the creation of a general exemption for the horizontal agreements between companies unable to control a significant share of their market, that is to say, set at 20% for specialisation agreements and 25% for R&D agreements. The exemption will replace the "white list" system of expressly exempted clauses of the ban. The clauses that constitute "hardcore" restrictions are still banned: price-fixing, output limitation or the allocation of markets or customers.

These projects are part of the modernisation framework of competition regulations applicable to horizontal cooperation agreements started in 1997. A similar regulation concerning the vertical restrictions was adopted last 22 December. The aim is to simplify the procedures, reduce bureaucracy and "be more user-friendly, with greater clarity and an increase scope of application", reminds the Commission in its communiqué. "A more effective policy with regard to horizontal cooperation would reduce the restrictions that the regulation imposes on companies, while ensuring the effective monitoring of the agreements between companies who hold a significant market share," announced the European Competition Commissioner Mario Monti.

The draft regulations and guidelines where published in the official Journal C/188 of 27 April 2000 and on the Commission Internet site: http: //europa.eu.int/comm/dg04/entente/other.htm.

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