Brussels, 12/12/2001 (Agence Europe) - On Monday, the European Commission decided not to oppose the creation of two new joint undertakings, Eutilia and Endorsia, that will provide business to business (B2) electronic market places.
After having examined both projects, the Commission concluded that the agreements notified would not restrict competition under Article 81 (1) of the Treaty since the two Internet portals would be accessible for all potential users without discrimination and that all members of the market will be free to do business through other on- and offline methods. Furthermore, the ventures will not act as a buying club, but rather as an intermediary. They will also provide appropriate protection of confidential information: firewalls and other safeguards will ensure that no commercially sensitive data is disclosed between competitors.
Eutilia will provide business to business services in the field of the procurement of goods and services to utilities in the electricity sector including auctions, e-catalogue purchasing, off catalogue purchasing, buying and selling inquiries, supplier database services and hosting of individual purchasing sites. The internet portal will be owned by eleven major European electricity utilities: Electrabel SA (Belgium), Electricité de France (France), Endesa Net Faqctory SL (Spain), Enel SPA (Italy), Iberdrola (Spain), National Grid Holdings Limited (United Kingdom), NV Nuon (Netherlands), RWE Systems AG (Germany), Scottish Power UK Plc (United Kingdom), United Utilities BV (Netherlands) and Vattenfall AB (Sweden). Each founding company will hold 8.5% to 9.8% of the Eutilia share capital. As a result, none of them will have control over the portal within the meaning of the European Community Merger Regulation. The Commission points out that the portal may, as a result, extend its range of activities by offering different support services (for example financial services), supply chain integration services and hosting services. It hopes to broaden its focus to goods ands services for other utilities.
Endorsia group five manufacturers of machines and industry components: Aktiebolaget SKF (Sweden), Reliance Electric Industrial Company (United States), The Timken Corporation (United States), Industriewerk Schaeffler INA-Ingenieurdienst GmbH (Germany) and Sandvik Finance B.V. (Sweden). They will each acquire a 20% interest in Endorsia. Endorsia will provide services to meet the buying and selling needs of different manufacturers, distributors and end-users for branded industrial goods and services. Suppliers will be able to connect to customers and customers to their suppliers by using one single electronic interface. Endorsia itself does not engage in any buying or selling activities. Each of the sellers will maintain their own separate "storefronts", deciding, for example, their own selling and customer access rules, terms and conditions of sale, shipping policy and pricing. Endorsia will thus serve as a conduit between individual sellers and their customers.