EC PROPOSES DECENTRALIZATION OF ANTI-TRUST DECISIONS
The European Competition has proposed a regulation that extensively amends its system for implementing European laws on restrictions of competition and abuses of dominant market positions.
The EC is proposing a system in which the national competition authorities and courts will also be able to apply Article 81 of the EC Treaty — one of the main European competition laws. At present, only the EC has the competence to apply the law, under a centralized system in force since 1962.
Under the proposed new system, the competition authorities and the EC “will form a network and work together to punish infringements of the Community competition rules,” a spokesman for the EC said. National courts will protect the rights that individuals enjoy under Community law by awarding damages or ruling on the enforcement of contracts.
The EC adopted a proposal on Wednesday for a regulation implementing Articles 81 and 82 of the EC Treaty, which set out the EC competition rules applicable to restrictive practices between businesses and abuses of dominant positions committed by them.
“This is the most important legislative initiative in the competition field since the 1990 Merger Regulation,” said Mario Monti, EC competition commissioner. “This will allow the Commission to concentrate on combating restrictive practices and abuses of dominant positions,” he added.
The proposal will need to be adopted by the European Council, with the European Parliament being consulted.
The proposal is intended to strengthen competition in the European Union, the EC said.
The current system involves the notification of agreements to the EC, which alone is empowered to authorize those that restrict competition. Experience has shown that this notification system does not serve to safeguard competition, the EC said.
Abolition of the notification system will ease the administrative constraints imposed on businesses by the current system, the EC added.