Parliament to back competition rules reform

Date: 13/01/2000

By Peter Chapman

MEPS are set to give their broad approval to European Commission plans to overhaul the EU's out-of-date competition rules next week.

The European Parliament is expected to rubber stamp a report on the proposals drawn up by German Christian Democrat Karl von Wogau which welcomes the reform plans unveiled last year by former Competition Commissioner Karel van Miert.

Van Miert envisaged devolving much of the day-to-day control of anti-trust issues to national regulatory authorities and courts, and ending the requirement for firms to notify the Commission of agreements which could hamper competition in the EU's single market.

The move is aimed at cutting down the red tape faced by companies and freeing up Commission staff to focus on clamping down on the 'hard-core' cartels which are never notified to the Commission in any event.

Von Wogau says the Commission is "on the right track" with its reform plans, adding that they would "substantially change the present European competition system". But he argues that there are a number of gaps in the proposals which must be filled before the planned changes are introduced.

His report calls on the Commission to ensure that the new rules are fair to small companies which suffer most at the hands of big monopolies, and continue to offer guidance to national courts and regulators on complicated cases.

It also argues that the reform plan fails to offer "any significant contribution" to the debate over how to modernise other competition rules relating to abuses of dominant positions by firms. Here, Von Wogau calls for the introduction of new techniques of economic analysis to investigate market power.

He also says the Commission should ensure that future EU members, many of which have little experience of competition law, are capable of taking responsibility for applying the rules.

Despite these criticisms, Van Miert's successor Mario Monti is taking heart from the generally positive tone of the report. "Overall, it is quite positive," said one official, who nevertheless acknowledged that MEPs, member states and interest groups had all voiced valid concerns over the plan.

"There are two kinds of worries. Some say having too many people implementing the rules means you do not come to decisions that are coherent. The other is companies worried about legal security. They point out that we currently have a 'one-stop shop'," he said. "Most people acknowledge the need for a new system and no one has come up with a better alternative."

MEPs are set to give their broad approval to European Commission plans to overhaul the EU's out-of-date competition rules.