Brussels, 25/11/2002 (Agence Europe) - Speaking at the "Cercle Federalist europeen" in Brussels on 22 November, the European Commissioner responsible for trace, Mario Monti, placed into perspective ongoing reforms regarding competition. Regarding antitrust - the rules than frame agreements between companies - the Commission has made a radical reform of Article 17. Furthermore, it is in the process of making an in-depth review of Regulation 4064/89 (Concentrations).
a) Regulation 17: this 40-year old "monument" has allowed for the gradual putting in place of a "genuine culture of competitiveness" in the EU. National competition authorities have affirmed themselves and gained in expertise, Mario Monti was pleased to say. Thanks to the abundant case law that has developed, companies have been able to acquire a certain knack in themselves distinguishing, in their conduct, between what is "legitimate" and "acceptable". In that rationale, the Commission intends putting an end to the approval system based on compulsory notification, "to reduce bureaucracy to a minimum", while guaranteeing "even more effective implementation" of competition law and proceed with decentralisation to national jurisdictions. The Commission will thus be able to focus its action more easily "on pursuing serious infringements". Companies, for their art, will have to assume the consequences of this system. Freed of the obligation of notifying, they will have themselves of assess the compatibility of their conduct with the rules of competition. The Commission will thus ensure to give them clear and consistent signals and, in 2003 already, a "European Trade Network" will contribute to a systematic co-ordination of the analysis and measures of the relevant European authorities for competition and national jurisdictions. One essential aspect of the reform resides in the fact that national jurisdictions will now implement more than a single and same standard: Articles 81 and 82 of the Treaty, which will give rise to the creation of a "homogenous competition area offering companies more legal security", stressed Monti. The new Regulation should, except for surprise, be definitively adopted at the 26 November Council and take effect on 1 May 2004.
b) Regulation 4064/89: the review of the Regulation was begun a little later, but the urgency of the reform has been highlighted these past few weeks by the Court of First Instance's annulment of three Commission prohibition decisions. For Monti, "there is no question of placing into question the obligation of prior notification" of these operations. It is also "totally essential to conserve a one-stop-shop" which dispenses the companies with the administrative burden of multiple notifications in Member states. However, for a complete appreciation of operations, Mr. Monti proposes improving the dominance test applicable that will enable them to deal with competition problems that could escape the current test. Furthermore, if the positive effects of a concentration largely surpass the negative effects, they could now be authorised. The Commissioner also intends publishing a detailed communication to serve as guide to notifying parties and enhance the economic expertise of the case with the appointment of an "economist-in-chief for competition", supported by a team of industrial economists. Notifying parties, for their part, will have to have the guarantee that commitments they make will be duly taken account of. To that effect, and strengthening of the "checks and balances" systems is being envisaged through a system of "grilling" of all in-depth enquiries. (phase 2), by which an internal panel will submit the reasoning of the arguments developed by the team responsible for the case to criticism. The role of the guardian of the rights of defence devolved to auditor councillors will also be strengthened. Notifying parties will, moreover, have to have more time to answer the Commission's objections. Likewise, the Commission will have to have sufficient time to study proposals. Thus, under certain conditions, deadlines for phase II of the enquiries could be extended by a few weeks, and deadline constraints applicable to the notification process will be relaxed. This "administrative" work will have to be balanced by a rapid and effective jurisdictional control, Mario Monti further stressed, recommending a strengthening of resources of the CFI and the Court of Justice. Thus, by combining all these improvements, the EU will have "a system that in all objectiveness will the one of the best in the world", Monti believes. The draft new Regulation should be approved by the College on 11 December, before being adopted in the autumn of 2003 by the Council, to be implemented early 2004.