Brussels, 20/11/2007 (Agence Europe) - At the occasion of the 50th anniversary of the Treaty of Rome, the European commissioner for competition, Neelie Kroes, on 19 November unveiled the transaction procedure for antitrust proceedings presented by the Commission on 26 October (EUROPE 9532). Having highlighted the successes of the Commission since 1962 (when it was invested with the power to pursue infringements of Community competition law), the commissioner, who was speaking to the press in Barcelona, listed the advantages and proceedings implied by the proposed system.
In reference to the Reform Treaty, she highlighted above all that the legal base for actions carried out by her DG was to remain the same, and that the basis of the pertinent articles under the treaty remained unchanged, although the numbering had been altered during the “simplification” of the text. She also pointed out that the Commission is more active than ever before in pursuing cartels, and that the total fines imposed in 2007 already exceeds €2.5 billion - far outstripping the €1.8 billion in 2006, the previous record year.
Ms Kroes does not plan to slacken off in this fight. She proposed a raft of measures at the end of October to make a few changes to regulation 773/204 of the Commission, and a draft regulation on transactions in these proceedings. These measures focused essentially on a possible reduction in fines, in exchange for not contesting guilt, and the procedural cooperation of the cartel member. These transactions may apply only to cases dealing with cartels, where there is the greatest opportunity to reach a rapid agreement with the accused, as long as evidence is in place. These transactions would not replace the clemency programme, Ms Kroes stressed. Initially, the reductions in fines under this programme (already in place) are of much greater interest to the penalised companies. Furthermore, once the transaction procedure is under way, the companies will no longer be able to backpedal to take advantage of the clemency programme. And if they still refuse to cooperate, the transaction procedure will be abandoned and the normal proceedings will resume, with all rights to legal redress, but with no right to any reduction in fine.
The “considerable economies in procedure” carried out by the Commission by means of this new instrument will free up resources to pursue a greater number of suspected infringements. The cartel members will also win out, the Commission added, as they will benefit from a right of reply earlier in procedure, have the option to draw a line under their “past illegal behaviour” and may enjoy a reduction in their fine. The consumer will of course benefit too, due to the increased efficiency of the efforts of the Commission to fight cartels and, thereby, artificial price increases. The entire raft of measures is the subject of a public consultation in place up to 21 December; the Commission calls upon all interested parties to make their contributions at:
http: //ec.europa.eu/comm/competition/cartels/legislation/settlements.html