Brussels, 08/06/2009 (Agence Europe) - European civil servants, lawyers and university academics will discuss the controversial issue of the Commission's application of Community competition law, at a conference to be held in Brussels on 11-12 June. Some of those taking part are of the opinion that the Commission has excessive powers, particularly when it comes to calculating fines for cartels and abuses of dominant position. The conference, entitled "Towards an optimal enforcement of competition rules in Europe", is organised by the "Global Competition Law Centre" (GCLC), under the leadership of the College of Europe.
"Time for a review of Regulation 1/2003?", asks the sub-title of the programme. This, according to a number of experts who believe that the powers possessed by the Commission to fine companies found abusing their power over the market are excessive, is a rhetorical question. The current regime is questionable "particularly when it comes to respecting the rights of the defence", says Jacques Bourgeois, a lawyer specialising in competition with the firm WilmerHale and President of the GCLC. The Commission can impose a fine of 10% of turnover on companies found guilty of being in an illegal cartel or abusing a dominant position, anti-competitive behaviour which is illegal under articles 81 and 82 of the EC Treaty.
Mr Bourgeois takes particular issue with two of the elements of this method: the fact that it is possible to calculate the maximum fine on the basis of the turnover achieved by the mother company of the company directly involved (as was the case in the Repsol affair, see EUROPE 9808); and the power to make this calculation on the basis of the turnover achieved by the company at global level, even though the Commission's area of jurisdiction is limited to the territory the European Economic Area. Over the telephone, the spokesperson to the Competition Commissioner Neelie Kroes swept aside all accusations of injustice towards cartel members. "Cartels and abuses of monopolistic positions cause major damage to the economy of the EU. Therefore, the sanctions need to be a deterrent", said Jonathan Todd, adding: "These companies deserve no sympathy". The conference will be held in the Hilton hotel in Brussels. More information is available at http: //http://www.coleurop.be/template.asp?pagename=gclc .
Private damage claims against cartels? Mr Todd also referred to the Commission's intention of drafting "proposals to facilitate private claims for damages", which would have an additional deterrent effect. Since the publication of a Green Paper on this subject in 2005 (followed by a White Paper in 2008), the Commission is considering the possibility of allowing consumers adversely affected by anti-competitive behaviour to bring the companies in question to justice themselves. However, many technical obstacles to actions of this kind persist, particularly concerning the problems of putting an accurate figure to the damages suffered, and court costs which would, in many cases, exceed the amount consumers would stand to win in damages. The Commission hopes to set an example itself by taking the lift manufacturer Schindler before the Belgian courts, as a result of the company having been found guilty last June of increasing its prices in concert with its competitors (see EUROPE 9689). (C.D./transl.fl)