Brussels, 18/07/2000 (Agence Europe) - The European Union and Japan announced, on the occasion of the EU/Japan Summit, that talks on a cooperation agreement in the field of competition are now over. On the European side, the agreement has still to be finalised and submitted to the Council and Parliament. It may not be signed before end 2001, it was pointed out in Brussels by the official in charge of the dossier at the Commission, Yves Devellennes. Similar to agreements concluded by the European Union with the United States and Canada, and by Japan with the United States, this agreement will allow three-way information exchange between the EU, Japan and the United States, stressed the European official.
The cooperation agreement between the Commission and the Japan Fair Trade Commission provides for: a) an exchange of non-confidential information on inquiries on either side concerning European and Japanese companies. Confidential information could also be exchanged, but only if the companies concerned give their agreement; b) an exchange of notifications on merger operations; c) a traditional courtesy "commitment" which provides for one part to take the interests of the other party into account before adopting a competition decision, and an "active commitment" whereby one party could call on the other to take measures on its territories. For example, the EU may call on the Japan Fair Trade Commission to inquire into the activities of a European company established in Japan; d) a coordination of implementation of the rules of competition; e) an information mechanism of the competition authorities in the EU Member States.
Concerned at seeing sensitive economic information dispersed too widely, Japan has called for a precise list of competition authorities in Member States, said Yves Devellennes. Both parties agreed that it is not necessary to notify "general" inquiries preceding the opening of formal procedure, for example for the definition of a market. The mergers will be notified at the stage which corresponds, for the EU, to the opening of a detailed inquiry lasting four months.
Nobody can challenge the growing international dimension of competition policy (…) Our experience until now has proven the co-operation in affairs of competition between great world economies is not only beneficial for the authorities, but that it also serves the interests of companies and in the end those of the consumers," announced the Competition Commissioner Mario Monti. The competition agreement "ensure that only the benefits from liberalisation are not put in peril by the private practices of multinationals," underlined Yves Devellenes. Among others it enables an enforcement of Community law beyond the EU without risking extraterritorial problems, he added. Until now the Commission has examine sixty odd cases concerning companies overlapping between the EU and Japan. In one case "we co-operated with the Japanese anti-trust authorities, under the recommendation from the OECD," indicated Yves Devellennes. Though "until now there has never been a potential conflict between the EU and Japan as was the case between the EU and the United States over the Boeing/McDonald Douglas."