Brussels, 23/01/2003 (Agence Europe) - Competition Commissioner Mario Monti explained to the EP Committee on Legal Affairs and the Internal Market what reforms were being made in that sector. "No year has been so intense" for this policy, he said, giving an account of the year 2002. Thus, on 11 December, after consultation lasting several months, the Commission adopted its reform proposals for the Merger Regulation, proposals that should be endorsed by the Council in the autumn. Mario Monti recalled that reform is intended to modernise legislation now somewhat out of date because of the fact that operations have increased in number and in complexity over recent years (EUROPE of 12 December, p.10). He also spoke of "important issues" raised by three recent rulings of the Court of First Instance (CFI). He believes these rulings compel the Commission to comply with the strictest norms and have allowed it to consolidate reform. We recall that the CFI had, on three occasions, cancelled negative Commission decisions on merger projects (Airtours/First Choice, Schneider/Legrand, TetraLaval/Sidel). The Commission only appealed in the TetraLeval/Sidel case as "this judgement is based on the problems of legal principles affecting different aspects of Commission activities on merger control", Mr Monti said in response to Social Democrat Christa Randzio-Plath.
Evoking the criteria used by the Commission to assess how well founded a merger is, Mr Monti recalled the effectiveness of the European model. Unlike the United States, where the fundamental criterion is substantial weakening of competition (SLC - substantial lessening of competition), in the EU the criterion is the creation or strengthening of a dominant position. The Commissioner also cited the speed of the European procedure - "one of its strengths" compared to the US system. "We have maintained this element by introducing greater flexibility for complex cases", mainly concerning deadlines that can be extended, he stressed. Mario Monti recalled the importance of the work by national authorities on merger control. "Modernisation should allow far less centralised competition legislation to be set in place (…). One can bring the implementation of such provisions closer to the citizen - subsidiarity has become a reality".
Visibly appreciated by his audience, the Commissioner's speech gave rise to several questions. Thus, Klaus-Heiner Lehne (CDU) congratulated the Commission for his way of managing competition policy - which, despite the three recent rulings, is "one heck of a success". He asked Mr Monti how he was going to react to the request for costs for damages and interest to be introduced by Schneider, whose proposed merger had been rehabilitated by the CFI. The Commission was not informed that such a request had been made, but it was a possibility not to be ruled out, Mr Monti replied. "The Commission will be closely studying the arguments in its defence. I am convinced that the case has been examined in all good faith and with an open mind (…). I feel serene about the outcome", he declared. Arlène McCarthy (Labour) asked why the Commission had not thought about taking on a "chief economist" at an earlier date and what its priorities were when studying a case. She also stressed the importance of a transparent system that would prevent companies from challenging decisions in justice and said she hoped that, with regards state aid, encouragement would be given to the private sector with more flexible rules so that the system would be "regenerated". Mr Monti recalled that, although the function of "Chief Economist" was something new, there have for a long while been several economists in his service working in close collaboration with other services. The new post will therefore be "one more". Regarding the transparency of the system, he pointed out that reform would make it possible for parties to make their voices heard better during the procedure, and that the parties would be informed at the earliest possible date of the nature of complaints regarding their project. During the study of a case, the foreseeable impact on competition is a fundamental criterion for the Commission, he said. He specified that, during an investigation into a cartel, eradication of cartels being a priority for the Commission, the latter seeks dialogue with companies invited to collaborate, which is all to their advantage ("leniency policy"). Concerning State aid, the Commissioner considers that much has already been done with regards "regeneration". In response to Ms McCarthy, he said "we are moving along the lines that you want, without making it too easy to open up the doors allowing the rules to be circumvented". Finally, Mr Monti told Danish Liberal Karin Riis-Joergensen that he paid considerable interest to the setting in place of a structure in order to follow the evolution of Articles 81 (agreements) and 82 (dominant positions). He stressed that great attention is also being paid to faster judicial revision and that "we are working along these lines and want to maintain good relations with the Court of Justice on this point".