Post on 15-Jan-2016
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BundeswettbewerbsbehördeGD Dr. Theodor Thanner
St. Gallen ICF, 24 April 2009
BUNDESWETTBEWERBSBEHÖRDEFederal Competition Authority of Austria
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Regulation 1/2003- 5 years on -
„Form is the sworn enemy of caprice, the twin sister of liberty. […]“
Jhering, Geist des römischen Rechts auf den verschiedenen Stufen seiner Entwicklung, 2.
Theil, 2. Abteilung, 3. Auflage 1875 U 470.
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An Expedition
27 mountaineers
with EC-equipment
climbing a mountain
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Edward Theodore Compton, 1918
Großglockner, 3798m
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ECN
cooperation
exchange of information and evidence
best placed authority
new investigative powers
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Cooperation
principle subsidiarity
communication
transparency
confidentiality
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Subsidiarity I
Treaties of the European Union Rome, 1957
- principle of subsidiarity
Treaty of Maastricht, 1992
- official introduction of the principle to increase transparency and
openness in the decision making process of the Community
Treaty of Amsterdam, 1997
- detailed criteria for the application of the principle by the Community institutions participating in the legislative procedure
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Subsidiarity II
Constitution for Europe, 2004 (failed 2005) - new definition of the principle
- local and regional dimension
- mechanisms for implementation and monitoring
Lisbon Treaty, 2007- national parliaments with regard to the principle monitoring has
been strengthened
- infringements of the principle MS‘ governments can take case
to the European Court of Justice
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Principle of SubsidiarityArt 5 EC-Treaty*
– it is a guiding principle for defining the boundary between MS and EU
– exclusive competence of EC – subsidiarity does not apply
– shared competence of MS and EC – decentralisation
– EC only if objectives cannot be achieved sufficiently by MS and if they can be better achieved by the EC
*Art 5 Para 2 EC Treaty and protocol nr 30
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Reg 1/2003 quo vadis? Case Study I
„Best placed authority“
- EC - MS: partnership marked by division of labour
- priority setting of Competition Authorities
- petrol markets no priority of the EC – shifted to national level
- NCA took responsibility and investigated
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Reg 1/2003 quo vadis? Case Study I
- National investigations: good results
- Results: prices follow closely (contractually) the prices of Platts*
*Platts: business unit of the McGraw-Hill Companies, a global provider of information regarding energy and resources existent since nearly a century
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Reg 1/2003 quo vadis? Case Study I
- Nobody knows but we would like to understand
- FCA of Austria (A) cannot send formal information requests to a company with headquarters in London
- FCA of A sent letter asking for basic information
- What if they are still on Easter holiday?
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Reg 1/2003 quo vadis? Case Study I
- We have to think beyond!
- European retail- and wholesale prices are linked to these notations >>> notations have tremendous impact on price developments
- More transparency >>>more rational actions
- Isn‘t there a need for regulation?
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Reg 1/2003 quo vadis?Case Study II
The role of the judges
- Art 9 Commitment Decision implemented in Austrian Law (like in many other national legislations)
- 2 cases so far closed by Commitment Decision
- but: task work for the FCA to follow a formal proceeding before the Cartel Court
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Reg 1/2003 quo vadis?Case Study II
How could judges be more integrated in the
ECN?
Do we have enough legal certainty?
Do the parties have enough legal protection?
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Legal Protection
- transparency vs business secrets
- confidentiality between NCA vs confidentialitybetween law firms
- communication
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Outlook
cooperation >> partnership
exchange of information and evidence >> transparency and communication
conflict of competence>> best placed authority
new investigative powers>>effectiveness
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Conclusion
Not to bend the rules but to stand the rules.
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Thank you for your attention!