XXIVth report on Competition Policy 1994
650 pages
English
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XXIVth report on Competition Policy 1994

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650 pages
English

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Competition policy
Information policy

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Nombre de lectures 50
Langue English
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XXIVth Report
on Competition Polic
(Published in conjunction with the
'General Report on the
ctivities of the European Union — 1994')European Commission
XXIVth Report
on Competition Policy
1994
(Published in conjunction with the
'General Report on the
Activities of the European Union - 1994')
Brussels • Luxembourg, 1995Cataloguing data can be found at the end of this publication
Luxembourg: Office for Official Publications of the European Communities, 1995
ISBN 92-827-4578-3
© ECSC-EC-EAEC, Brussels • Luxembourg, 1995
Reproduction is authorized, except for commercial purposes, provided the source is
acknowledged
Printed in GermanyTable of contents
PART ONE-GENERAL INTRODUCTION 15
I- Main developments in competition policy in the7
European Union
A - General survey of the main institutional developments in 1994 17
B - Competition policy, an essential instrument for establishing9
the internal market
1 - The internal: an objective partially achieved 19
2 - Competition policy and the removal of private-sector obstacles to trade 19
3 -ny and State conduct 21
C - Competition policy and economic recovery3
1 - The need to restructure industry3
2 - The role of competition policy in economic recovery 23
3 - The competition rules must takec realities into account6
D - The globalization of trade7
1- The new world environment 27
E- The role of the European Commission9
1- The principle of subsidiarity and competition policy9
2- Improving efficiency 30
3- Increasing transparency2
F- Relations with Parliament and the Economic and Social Committee 34
and other contacts
II - Relations with the authorities and courts in the Member States 37
1 - Conference of the Directors-General for Competition 37
2 - Advisory Committee on Restrictive Practices and Dominant Positions 40
3 -ye on Concentrations 40
4- Conference of national government experts1
5- Relations withl courts1
6 - Competition law in the Member States3
COMP. REPORT 19944 TABLE OF CONTENTS
III -Presentation of the Competition Report 75
1 - The Competition Report: a means of ensuring transparency 75
2- Outline of the legal provisions on which Community competition6
policy action is based
3- The decision-making process 78
4 - Quantitative description of Commission activity8
PART TWO - SUMMARY OF MAIN DEVELOPMENTS 81
I - Articles 85 and 86 83
A - Horizontal developments: legislation and notices 83
B- Prohibitions, Article 85(1) 94
1 - General considerations4
2 - Hard-core cartels4
Cartonboard4
Cement5
Steel beams6
Tretorn7
Unexemptability of hard-core cartels7
3 - Other restrictions of competition7
4 - Object or effect of restricting competition 98
5 - Restriction of competition within the common market8
6- Single and continuous infringement9
7- Association of undertakings 100
8 - Effect on trade between Member States1
C- Negative clearance/exemption decisions2
1- General considerations2
2 - Strategic alliances (BT/MCI and Olivetti/Digital)2
3- R&D, production and sales joint ventures limited to specific products 105
4- Capacity reduction agreement (Stichting Baksteen) 111
5- Transport cases (Eurotunnel, ACI, Night Services and CIA)2
D-Article 86 .6
1- General considerations 116
2- Relevant product market6
3- Geographic market8
4- Dominance8
5- Abuse9
6- Remedies 121
COMP. REPORT 1994TABLE OF CONTENTS 5
II - Articles 37 and 90 123
A - General introduction 123
B- Telecommunications 125
C- Postal services 130
D- Transport 131
E- Energy 133
F- Further amendments of the transparency Directive 135
G - Other service industries 136
III-Mergers 137
A - Horizontal developments: legislation and notices 137
1 - Legislative provisions7
2- Interpretative notices8
2.1. The distinction between concentrative and cooperative joint
ventures8
2.2. Notion of'a concentration'9
2.3.n of'undertakings concerned' 140
2.4. Calculation of turnover1
B - Major applications of the Merger Regulation2
1 - Scope of application 142
1.1. Community dimension (Article 1)2
1.2. Calculation of turnover thresholds (Article 5)3
1.3. Definition of a concentration (Article 3)4
• Notion of control4
• Concentrative joint venture5
2- Appraisal of concentrations6
2.1. Defining the relevant product market 146
2.2.g thet geographic market8
2.3. Assessment of compatibility with the common market 150
• Main assessment criteria 151
-Single dominant position1
-Oligopolistic dominance2
- Potential competition and market contestability 154
3 - Changes to the initial transaction: withdrawals of notifications and
conditional commitments5
4- Monitoring ofs in Phases I and II6
• Magneti Marelli/CEAC6
• Unilever France/Ortiz Miko7
• Procter and Gamble/Schickedanz7
• Kali + Salz/MdK/Treuhand7
COMP. REPORT 19946 TABLE OF CONTENTS
• Air France/Sabena 158
• Elf Atochem/Rutgers8
•DuPont/ICI8
5 - Application of Articles 4, 7, 9 and 21 of the Merger Regulation and
Article 223 of the EC Treaty8
5.1. Application of Article 4 (incomplete notification) 158
5.2.n ofe 7 (suspension of concentration and
derogations from the suspension)9
5.3.n of Article 9 (referral to the Member States) 160
5.4. Application ofe 21 (legitimate interests of Member States) 160
5.5.n of Article 223 of the EC Treaty establishing the
European Community (military equipment) 161
IV-State aid 163
A - Introduction3
B- Notion of aid5
1 - Government intervention and use of State resources 165
2- Advantage to the recipient5
3- State aid and general measures7
4- Effect on trade between Member States 168
C- Compatibility of aid with the common market 170
1 - Aid that is compatible dejure0
2- Aid that may be deemed compatible1
2.1. Aid for rescuing and restructuring firms in difficulty1
2.1.1. Privatization 173
2.1.2. Treuhandanstalt4
2.2. Regional aid5
2.2.1. General developments5
2.3. Sectoral aid6
2.3.1. Aid within sectors subject to specific Community rules on State aid 176
•Shipbuilding6
• Steel7
• Motor vehicle industry8
• Synthetic fibresy 180
•Textile and clothing industry1
•Aid in the agricultural sector2
• Aid in the fisheries sector3
• Aid in the transportr4
•Aid to the coal industry6
2.3.2. Aid within sectors not subject to specific Community rules
on State aid8
• Banking sector8
2.4. Horizontal aid9
• Small and medium-sized enterprises (SMEs) 189
• Research and development 190
•Environment1
•Export aid3
• Employment aid3
COMP. REPORT 1994TABLE OF CONTENTS 7
D - Procedural questions 195
1 - Obligation to notify and treatment of illegal aid 195
2- Formal investigation procedure under Article 93(2)6
3- New aid and existing aid7
V - International9
1- European Economic Area9
2 - Central and Eastern Europe, Baltic States and
New Independent States, Mediterranean countries 200
3- North America 202
4- Japan3
5- Australia and New Zealand4
6- Multilateral organizations4
7 - Contacts with Community institutions and external organizations 206
PART THREE - MAIN CASES DECIDED BY THE COMMUNITY
LAWCOURTS 209
A - Articles 85 and 86 211
1- Interpretation of Article 3(f), the second paragraph of 211
Article 5 and Article 85(1) of the EC Treaty
2- Concept of undertaking2
3-t of agreement3
3.1. Agreement between associations of undertakings3
3.2.t resulting from tacit acceptance by a party4
4- Concept of restriction of competition4
5-t of effect on trade5
6- Powers of the national court in relation to the application of Article 85(1)
of the EC Treaty 217
7 - Horizontal agreement: exchanges of commercial information between
competitors7
8-l agreement in the banking sector 218
9 - Vertical agreements: questions of distribution 220
9.1. Selective distribution 220
9.2. Exclusiven1
9.3. Motor vehieje distribution - authorized intermediary1
9.4. Clause prohibiting exports2
9.5. Exclusive purchasing clause2
10-Agreements restricting competition and intellectual
property rights3
11 -Applicability of Regulation No 263
12 -Abuse of a dominant position4
12.1. Dominant position-definition of the product market 224
12.2. Undertakings enjoying a statutory monopoly-contiguous
series of territorially limited monopolies 224
12.3.s enjoying a statutory monopoly - different
conditions for equivalent services5
12.4. Abuse on a market which is distinct from the dominated market 226
12.5. Collective dominant position-exclusive purchasing clause 226
COMP. REPORT 19948 TABLE OF CONTENTS
12.6. Predatory prices 227
12.7. Excessive fee7
13-Procedure7
13.1. Annulment by the Court of Justice, for infringement of an
essential procedural requirement, of a decision previously
declared by the Court of First Instance to be non-existent 227
13.2. Requests for information - powers and obligations of the
Commission and of the Member States 229
13.3. Request forn by decision 231
13.4. Investigation of one and the same case under the State aid rules and
under Articles 85 and 862
13.5.n relating to an agreement severable from the notified
agreement 232
13.6. Length of the investigation3
13.7. Access to the file3
13.8. Dispatch of a supplementary statement of objections 233
13.9. Language question: hearing; full translation 234
13.10. Hearing: omissions from the minutes; second hearing devoted
to the penalty4
13.11. Rejection of a complaint-interest in bringing proceedings
against the company which is the subject-matter of the complaint 235
13.12. Liability for an infringement-takeover of the assets of one company
by anothery 235
13.13. Burden of proof - duration of an infringement 236
13.14. Notification of a decision6
14-Rules on the fixing of fines (Article 15(2) of Regulation No 17)7
B - Interpretation of the ECSC Treaty9
C - Case-law pursuant to Articles 37 and 90 of the EC Treaty 241
1 - Case-law pursuant to Article 37 241
2-wt toe 90(1)1
3-wt to Article 90(2)2
4 - Decision pursuant toe 90(3) - action brought by an undertaking
against Community institutions for failure to act3
5 - Interpretation of the Directive on telecommunications terminal equipment,
adopted pursuant to Article 90(3)4
D - Merger control5
1 - Decision conditionally authorizing a merger - suspension of operation 245
2- Community dimension of a merger 246
3 - Sole or joint control7
4- Definition of the relevant market7
5 - Procedure - whether a spokeman's statement is in the nature of a decision 248
6 -e - admissibility of actions brought by competitors 248
E- State aid 250
1 - The consequences of the definitive nature of a Commission final
decision declaring aid unlawful vis-a-vis the recipient of such aid 250
2 - The reasoning requirements of a Commission decision as regards
the existence of an aid programme1
3 - The problems involved in State aid granted to public enterprises
entrusted with the operation of services of general economic interest 252
COMP. REPORT 1994

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