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Fair Competition in Europe

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Subido el 29 de junio de 2007 por EducaMadrid

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Agreements between companies, abuse of a dominant position, mergers, cartels and excessive public assistance can, if not controlled and sanctioned, totally distort competition within the European Union's internal market. That is why the European Commission has been charged by the Member States closely watch and sanction practices which hinder free trade. In April 1999, it published a White Paper which proposes the reduction, decentralisation and simplification of declaration procedures carried out by companies.

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The European Union, an open and free market. 00:00:00
A market which is regulated and controlled to maintain balance. 00:00:28
A role fulfilled by the European Commission. 00:00:33
It monitors the development of the various sectors and analyzes the effect of commercial 00:00:36
agreements on competition. 00:00:40
It decides whether they should be banned or permitted. 00:00:42
Most of these agreements meet with the approval of the Commission. 00:00:46
However, the Commission also combats malpractice, which distorts competition. 00:00:49
It implements procedures that safeguard the rights of companies to defend themselves in 00:00:55
a spirit of fairness and objectivity. 00:01:00
What is the purpose of the European Union's competition policy? 00:01:05
In what areas does the Commission act to guarantee fair competition in Europe? 00:01:09
The United Pharma Company, an American multinational, launches a revolutionary over-the-counter 00:01:29
drug, a pill that allows smokers to kick the habit quickly. 00:01:35
Four European companies follow suit and launch similar drugs. 00:01:42
These products have only minor differences. 00:01:46
They are advertised extensively for only 25 Euros. 00:01:50
The management of the five companies meet secretly and decide on a price increase of 00:01:58
25% per box as of the 1st of October 1998. 00:02:02
This is followed by a further 25% increase at the start of the following year. 00:02:07
David MacLean was present that day in his capacity as Vice President of United Pharma. 00:02:14
Well, as soon as we announced the price increase, complaints started to flood in. 00:02:19
We were suspected of having formed a cartel because there was no significant increase 00:02:25
in the cost of raw materials or indeed any other cost that could justify such a price 00:02:29
increase. 00:02:34
On the basis of economic activity analyses and complaints lodged by consumer associations, 00:02:42
the Commission opens an investigation and asks for information. 00:02:47
Upon receiving incomplete information from the companies, the Commissioner responsible 00:02:56
for competition signs in September 1999 a decision ordering the five companies to be 00:03:00
submitted to an inspection of their business premises and documents. 00:03:05
The inspectors of the Commission, accompanied by officials from national competition authorities, 00:03:12
visit the headquarters of the five manufacturers. 00:03:17
They all accept the inspection except for one. 00:03:21
He is subsequently forced to accept the inspection on the basis of national legislation. 00:03:24
The head of the investigation team finds evidence of the meeting of the directors of the five 00:03:29
companies held on the 15th of September 1998. 00:03:32
On the 1st of March 2000, the Commission sent me and all the other companies involved a 00:03:42
document which described the objections expressed to our commercial behaviour. 00:03:49
On the 15th of July 2000, and following access of non-confidential documents of the file, 00:03:55
all the companies submitted their written reply to the objections expressed by the Commission. 00:04:01
A hearing on the case is organised by the Commission on the 1st of September 2000 in 00:04:06
Brussels. 00:04:10
It's chaired by the hearing officer, a senior official that guarantees the rights of defence 00:04:11
and independent of the team investigating the case. 00:04:15
It's held in the presence of all parties involved, as well as third parties, representatives 00:04:19
of the competition authorities and interested ministries of the member states, as well as 00:04:24
by other Commission services concerned. 00:04:28
The 00:04:49
market for spring water. 00:05:12
Food International, a large food group which manufactures and sells its products throughout 00:05:15
the world. 00:05:19
Consolidated turnover, over 28 billion euros. 00:05:21
Saucier is active in the production and distribution of bottled water. 00:05:29
Consolidated turnover, over 2 billion euros. 00:05:34
The springs used by the two companies are mainly located in one single country. 00:05:37
There's only one other major operator on the market for bottled water. 00:05:43
The Entreprises Alimentaires Réunies, EAR. 00:05:47
The stock exchange has had a few jolts today with the announcement by Food International 00:05:55
of their takeover bid for the Saucier Group. 00:05:59
Under the terms of the bid, Food International would transfer certain brands of the Saucier 00:06:03
Group to another mega group, EAR. 00:06:07
This operation would give these two groups a dominant position in the spring water market. 00:06:11
We've learnt that Food International has informed the Commission of its intention and is waiting 00:06:17
for the green light. 00:06:21
In this notification, Food International shows that the operation doesn't result in the creation 00:06:28
or reinforcement of a dominant position on the market. 00:06:33
The Commission has a month to decide whether the operation will lead to problems. 00:06:37
Within the framework of the investigation, questionnaires are sent to the parties and 00:06:41
to the main competitors and customers. 00:06:45
Interviews or on-site visits are organised. 00:06:48
Following this one-month investigation, the Commission decides to carry out a more in-depth 00:07:05
study of the market and the deal before announcing its final decision. 00:07:09
The Commission expresses its objections to the operation, which are sent to the parties 00:07:14
for comment. 00:07:18
Following a consultation of the non-confidential part of the file and a hearing, a draft decision 00:07:20
is prepared. 00:07:24
It provides for a significant proportion of the springs of Food International to be sold 00:07:26
off to a foreign operator. 00:07:31
This will guarantee an effective competition on the market. 00:07:33
The draft is examined by competition authorities of the Member States during a meeting of the 00:07:42
Consultative Committee. 00:07:46
The Committee adopts a favourable opinion. 00:07:48
A large, state-owned chemical firm is suffering serious economic difficulties. 00:08:18
The Government is about to inject a significant amount of capital, mainly to avoid bankruptcy. 00:08:44
The meeting, which is taking place today between the Commissioner for Competition and the Minister 00:08:50
of Industry, follows several meetings which were held in March between national authorities 00:09:17
and the representatives of the Commission. 00:09:22
In view of the Company's economic difficulties, the Commission considers that the injection 00:09:27
of such a considerable amount of capital could not have been made by a private investor. 00:09:31
Consequently, the Commission considers that the capital injection does in fact constitute 00:09:36
Government aid, capable of distorting competition within the community market. 00:09:41
The discussions with the national authorities reveal that some of the capital has already 00:09:46
been injected into the Company without prior Commission notification or approval. 00:09:50
The aid already paid will finance research and development activities. 00:10:06
The Commission considers that this part of the aid may be accepted under the Community 00:10:11
Framework for Aid to Research and Development. 00:10:14
For the remaining aid, the Commission expresses serious doubts about its compatibility with 00:10:18
the single market. 00:10:23
In fact, this aid is simply aimed at keeping the Company artificially alive, to the detriment 00:10:24
of its competitors. 00:10:29
The Commissioner for Competition proposes to the Commission to approve the part relating 00:10:48
to research and development, on the grounds of its beneficial action on the competitiveness 00:10:52
of the Company vis-à-vis its non-European competitors, and because it stimulates innovation. 00:10:57
On the other hand, the Commission decides to examine the other part of the aid, while 00:11:03
urging the Government to suspend payments until the examination is over. 00:11:07
The Commission explains publicly the reasons for the approval of a part of the aid and 00:11:27
the opening of the procedure concerning the remainder. 00:11:32
The decision is published in the official journal in the 11 community languages. 00:11:42
Interested parties are invited, within a period of one month, to transmit their comments and 00:11:47
remarks on this case to the Commission. 00:11:51
In the course of the procedure, the Government submits to the Commission a restructuring 00:12:21
plan for Global Chimie. 00:12:33
The plan will enable the Company to solve its economic problems and restore its long-term 00:12:35
viability. 00:12:39
In fact, the aid will be granted as part of the implementation of this restructuring plan. 00:12:40
The Commission verifies that the restructuring plan has a good chance of success and that 00:12:47
the Company will not need further aid in the future, then approves the aid. 00:12:51
The Commission, as the guardian of the treaties, has an obligation to ensure that public companies 00:13:17
or state monopolies are also subject to the general competition rules that apply to the 00:13:34
private sector. 00:13:39
In order to offer a better service to the consumer and in close cooperation with the 00:13:43
Member States, the Commission has adopted, during the last few years, several directives 00:13:48
aimed at liberalising the telecommunications sector. 00:13:52
This action was vital to prepare Europe for the Information Society. 00:13:57
All Member States have been obliged to grant a second licence for GSM mobile telephony 00:14:02
to private companies under the same conditions that apply to the publicly owned telecommunications 00:14:07
operator. 00:14:12
They are also obliged to liberalise satellite services, cable networks, internet access 00:14:13
and mobile communications. 00:14:19
Public voice telephony is also liberalised. 00:14:22
Telecommunications costs have dropped dramatically and the choice of services on offer has greatly 00:14:26
increased. 00:14:31
The competitive structures of the market are maintained today thanks to the Commission's 00:15:01
ongoing contacts with the OECD, the United States, Japan, Canada and many other countries 00:15:05
in order to harmonise decisions. 00:15:12
In the countries of Eastern Europe, the technical assistance provided by the European Union 00:15:16
helps in the development of competition policy where a new market economy is being set up. 00:15:26
Community competition policy is based on an accurate economic analysis of the market backed 00:15:36
up by the Commission's ongoing dialogue with industry and the Member States. 00:15:40
It safeguards the rights of companies to defend themselves in competition procedures implemented 00:15:45
in a spirit of fairness and objectivity. 00:15:51
It is designed to protect the consumer, employment, competitiveness and innovation within companies 00:15:55
by constantly guaranteeing an economically sound environment. 00:16:02
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Idioma/s:
en
Niveles educativos:
▼ Mostrar / ocultar niveles
      • Nivel Intermedio
Autor/es:
The European Union
Subido por:
EducaMadrid
Licencia:
Reconocimiento - No comercial - Sin obra derivada
Visualizaciones:
1436
Fecha:
29 de junio de 2007 - 10:26
Visibilidad:
Público
Enlace Relacionado:
European Commission
Duración:
00′ 31″
Relación de aspecto:
4:3 Hasta 2009 fue el estándar utilizado en la televisión PAL; muchas pantallas de ordenador y televisores usan este estándar, erróneamente llamado cuadrado, cuando en la realidad es rectangular o wide.
Resolución:
320x240 píxeles
Tamaño:
70.84 MBytes

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