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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!