Brussels, 29/11/2000 (Agence Europe) - The European Commission has adopted new competition rules concerning so-called horizontal cooperation agreements, that is, cooperation agreements between competitors. Likely to entail competition distortion, these agreements are subject to Community competition rules (Article 81 of the Treaty). Currently, their assessment is governed by two block exemption regulations concerning research and development agreements (R&D Regulation EEC No 418/85) and the specialisation agreements (EEC Regulation No 417/85), and two interpretative Notices. Given that the two current regulations will expire on 31 December and that the existing Notices need revision, the Commission has over the past three years carried out a wide-ranging reflection on the future assessment of horizontal cooperation. It has come to the present reform. Within the framework for broader review by the Commission with a view to simplifying and adjusting Community competition law, the new rules will henceforth comprise: (i) revised block exemption regulations in favour of research and development agreements and specialisation agreements as well as (ii) guidelines concerning different kinds of cooperation agreements (covering R&D agreements, and agreements on marketing, purchase, standardisation and environmental protection). They will take effect on 1 January 2001, the existing agreements being covered by the current block exemption regulations until 30 June 2001.
Compared to the earlier texts, the new texts are easier to use, clearer and more widely applicable. They will replace the existing "white list" system of clauses expressly authorised by general exemption of all conditions in which the companies conclude R&D or specialisation agreements, conferring on the parties to these agreements greater contractual freedom and greater independence in the face of the excessive constraints placed on them by the current regulations. Exemption is only applicable when the combined market share of the parties does not exceed 20% (for specialisation agreements) and 25% (for R&D agreements), recalls the Commission. Beyond these market shares, R&D or specialisation agreements will not be automatically prohibited but will have to be assessed individually. However, "hardcore" restrictions (price-fixing, output limitation or allocation of markets or customers) will generally remain prohibited irrespective of the parties' market power.
The guidelines complement the block exemption regulations. They are applicable to R&D and production agreements not covered by the block exemptions as well as to certain other types of competitor collaboration, such as joint purchasing, joint commercialisation.
With the adoption of this new regime, the Commission aims to modify the "formalist" approach that characterises the current legislation with a more "economic" approach allowing cooperation between competitors when this contributes to economic prosperity without threatening competition. "This will benefit consumers, companies and the Commission alike", said Commissioner for Competition Mario Monti. He went on to add: "A more efficient policy towards horizontal cooperation will reduce the regulatory burden for companies, while ensuring an effective control of agreements between companies holding market power". Soon to be published in the Official Journal, these new texts will be available on the following Internet site: http: //europa.eu.int/comm/competition/antitrust/legislation/.