No C 341/30 Official Journal of the European Communities 19. 12. 83 
Opinion on the 12th report of the Commission of the European Communities on 
competition policy 
A. LEGAL BASIS FOR THE OPINION 
On 11 May 1983 the Commission referred the abovementioned report to the Economic 
and Social Committee in accordance with Article 198 of the Treaty establishing the 
European Economic Community. 
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
The Economic and Social Committee prepared its opinion on the above matter at its 
210th plenary session held in Brussels on 28 and 29 September 1983. 
The full text of the opinion is as follows: 
THE ECONOMIC AND SOCIAL COMMITTEE, 
Having regard to the Treaty establishing the Euro­
pean Economic Community, and in particular 
Article 198 thereof, 
Having regard to the request made by the Commis­
sion of the European Communities on 11 May 1983 
for an opinion on the 12th report on competition 
policy, 
Having regard to the decision taken by its' 'chairman 
on 8 June 1983, instructing the Section for Industry, 
Commerce, Crafts and Services to draw up an opi­
nion on the matter, 
Having regard to the opinion adopted by the Sec­
tion on 7 September 1983, 
Having regard to the opinion delivered on its own 
initiative on 30 April 1981 on Community competi­
tion policy in the light of the current economic and 
social situation ('), 
Having regard to its opinions on the 10th and 11th 
reports on competition policy delivered on 24 Feb­
ruary 1982 (2) and 28 October 1982 (3), 
Having regard to the oral report by the rapporteur, 
Mr Mourgues, 
(') OJ No C 322, 10. 12. 1981, p. 3. 
O OJ No C 112, 3. 5. 1982, p. 23. 
(3) OJ No C 326, 13. 12. 1982, p. 6. Having regard to the discussions on 29 September 
1983, during its 210th plenary session, held on 28 
and 29 September 1983, 
HAS ADOPTED THE FOLLOWING OPINION 
by a majority with two abstentions: 
1.1. Firstly, the Committee would point out that 
the 12th report on competition policy testifies to the 
Commission's vigilance in implementing Part Three, 
Title I, Chapter 1 of the Treaty of Rome. It agrees 
with the Commission that now, more than ever 
before, steps must be taken to prevent distortion of 
competition in these times of severe recession. The 
Committee also observes that the sectors which pro­
vide most scope for competition are the ones that 
are weathering the storm most successfully. 
1.2. In a market economy, the maintenance of 
undistorted competition so as to stimulate business 
competitiveness is a key principle the Commission 
must enforce on the basis of the Treaty. The case 
law built up by the Court of Justice and backed up 
by decision after decision of the national courts 
shows that Community law is being observed. 
1.3. As the Commission's report mentions, count­
less obstacles (quite apart from the differing econo­
mic strategies of the Member States) still hamper the 
consolidation of the internal market and the smooth 
operation of competition procedures is a sine qua 
non for consolidation. Yet these procedures cannot 
19. 12. 83 Official Journal of the European Communities No C 341/31 
solve the price formation problems caused by the 
Member States' fiscal, social, monetary or other pol­
icies, which have still to be aligned at Community 
level. 
1.4. Measures to foster competition, consolidate 
the common market and improve the structure of 
the economy must therefore progress in tandem. 
In particular the Committee would point out to the 
Commission that the implementation of competi­
tion policy and the need to boost industrial poten­
tial are closely interlinked. The Community market, 
being an open one, requires that industry is 
equipped to face up to competition and hold its 
own in world trade. Closer industrial cooperation 
between Community firms must therefore be 
encouraged by competition rules tailored to less 
rigid and narrow criteria. 
For the purpose of adjusting EEC industrial struc­
tures Articles 85 and 86 of the Treaty of Rome will 
have to be interpreted so as to take account of the 
current economic situation and the need for a com­
mon policy to enable the Community to face up to 
the new terms of international competition. 
1.5. Besides being flexible and coordinated, com­
petition policy should incorporate the recommen­
dations and guidelines, set out in the Committee's 
own-initiative opinion of April 1981 and again in its 
opinion of October 1982 on the 11th report. In point 
2.5 of the latter opinion, the Committee urged the 
Commission not to confine itself to annual reports 
but to express its views more frequently, especially 
in the form of communications on specific topics — 
a practice which has fallen out of use but should be 
resuscitated. The resulting instrument would then be 
far more effective and balanced than a set of bans 
and derogations tailored to specific and restricted 
situations with the consequent disadvantages of 
inflexibility or partiality. 
1.6. Though the report cannot deal in depth with 
the interdependence of competition policy and 
Community and national policies in other spheres, 
such coordination and closer alignment must be 
ensured as part and parcel of a coherent overall 
approach consistent with the Community's trade 
policy. (Here one obvious example is the link-up 
with social, economic and monetary policies in 
these times of crisis and spiralling unemployment, 
especially among the young). Procedural rules 
2.1. The Committee welcomes the Commission's 
continued drive to improve administrative proce­
dures (upgrading of comfort letters, easier access to 
files, the information duties carried out by the newly 
created hearing officers). The results of these mea­
sures will be recorded in the Commission's 13th 
report. Next year's opinion will be able to draw con­
clusions from this experience. 
2.2. All moves conducive to speeding up and 
streamlining procedures, and hence stimulating 
competition, must obviously be explored and 
encouraged. 
2.3. With this in mind, the Committee would 
recommend that: 
— injured parties (firms and/or importers, con­
sumer associations, trade unions) address their 
complaints to the appropriate national authority 
or court, 
— the Commission, the Court of Justice and 
national courts give priority to applications and 
cases which involve ailing sectors. 
2.4. In contrast, where a complaint relates to 
Article 85 (3) or to a nationalized or privately-owned 
undertaking or undertakings heavily subsidized by 
central or local government or official bodies, the 
Commission must insist on obtaining full details of 
the offending measures in order to take an informed 
decision. 
2.5. Speaking generally, the Committee feels that 
the Commission's annual report on competition 
policy should provide details of decisions taken by 
national courts in furtherance of Community legis­
lation. The Commission should also take steps to 
publicize the national remedies available for indivi­
dual plaintiffs (firms, workers, consumers, etc.) 
where Community competition law is breached. If 
need be, the Commission should frame proposals to 
ensure effective and uniform implementation of 
Community competition legislation by all national 
courts. 
No C 341/32 Official Journal of the European Communities 19. 12. 83 
National and regional policies — State aids 
3.1. National legal systems play a significant role 
in monitoring competition on regional and national 
markets. 
3.2. The Commission must keep constant watch on 
national legislation to ensure that it complies with 
the spirit of Community provisions. The Court of 
Justice has of course delivered several judgments 
confirming that the bans provided for in Articles 92 
are directly enforceable in the Member States, since 
the primacy of Community law over national law is 
now an established fact. 
3.3. Originally justified as short-term measures to 
deal with emergency situations the scale and size of 
aids — in the form of subsidies or soft loans — has 
increased sharply. The Committee is disturbed by 
this trend, especially as experience shows that con­
tingency aids all too frequently become long-term 
structural aids, breeding 'dependence' in the firms 
concerned. In the circumstances, the Committee 
feels that the Commission's competition policy 
would be more effective if the criteria for authoriz­
ing or banning aid were (a) the improvement of all-
round Community competitiveness and (b) promo­
tion of the innovation and research potential of 
Community firms, based on a realistic appraisal of 
trends in the international division of labour. With 
this in mind, steps must be taken to: 
— clamp down on any escalation of public aid, 
— ban such aid when it is tantamount to protec­
tionism and offloads one Member State's 
economic difficulties onto another, 
— give favourable consideration to research and 
development grants designed to facilitate tech­
nical restructuring and the development of new 
products or to exploit potential for exports out­
side the Community. 
3.4. Comparisons would be easier if the Commis­
sion studied the introduction of a Community-wide code, applying similar criteria and assessments, for 
State, regional and local government aid. 
Proceedings under way 
4.1. Patent licensing plays a key role in competi­
tion. The Committee notes that a draft Regulation 
on this matter is imminent. By way of illustration, 
the pharmaceuticals industry should be studied 
from this angle. 
4.2. The chronic structural crisis in several sectors 
of industry, especially those dominated by a few 
powerful concerns, militates in favour of the introd­
uction of suitable regulations and merger control 
arrangements. In this connection, the Committee 
deplores the fact that no action has so far been 
taken on its opinion on this matter (see opinion on 
merger control — OJ No C 252/82). 
4.3. Lastly, it should be remembered that the adop­
tion of the proposed Statute for European compan­
ies and the European Cooperation Grouping — 
which in the latter case could encourage closer 
cooperation among small businesses in the Com­
munity, including those that claim to be members of 
the cooperative movement — would be of consider­
able assistance in ensuring the effectiveness of com­
petition policy. 
The development of concentration and competition in 
the Community 
5.1. The Committee is pleased to see that the Com­
mission's studies are now focusing on sectors, seen 
in relation to all Member States, rather than on the 
individual country's spheres of activity. Though the 
attendant problems cannot be ignored, this new 
approach should be warmly encouraged, if need be 
with the help of institutes specializing in such mat­
ters and the universities. 
5.2. Here the Committee would mention the need 
to compile statistics which are as reliable as possible 
in order to draw comparisons meeting stringent 
methodological requirements at Community level. 
5.3. The sectors under examination must be seen 
as a composite whole, bearing in mind that the 
breakdown between production and services is 
roughly equal these days. 
19.12.83 Official Journal of the European Communities No C 341/33 
5.4. In scrutinizing pricing policy as a factor in 
business strategy, attention is unfortunately con­
fined to book-publishing and the motor vehicle 
industry. An in-depth study is required, with parti­
cular emphasis on the following sectors; insurance, 
pharmaceutical products, bank loan facilities avail­
able to businesses (interest rates and selection cri­
teria), energy and building materials. 
Economic background to competition policy 
6.1. The lowering of the common external tariff 
has significantly reduced customs barriers and 
opened up the Community to international competi­
tion. Seen from outside the Community, some 
national aids could be regarded as tantamount to 
dumping, especially as there can be no attempt at 
concealment, and information is freely available to 
non-member countries. 
6.2. Consequently, the Community has to compete 
with (a) high technology countries (United States, 
Japan) and (b) LDCs producing labour-intensive 
manufactures such as textiles and footwear. 
6.3. During its first twenty years, the EEC fol­
lowed the path of free trade in industry and 'plan­
ning' in agriculture (the CAP). Recent economic 
straits have prompted a shift in approach. If the Community is to be able to compete on interna­
tional markets, there is call for: 
— a common industrial policy or, failing that, a 
Community strategy reflecting changes in the 
international division of labour, 
— greater selectivity so as to channel a major share 
of aid into those sectors with greatest export 
potential, 
— possible implementation, if the interests of the 
Community's trade policy so demand, of the 
protection arrangements provided for in the 
Treaty of Rome, bearing in mind (a) sectors that 
are competitive on world markets, (b) new tech-
nolgies and (c) available funding. In particular, 
the new instrument finally proposed by the 
Commission to protect Europe against the 
unfair commercial practices of third countries 
should be approved as soon as possible and 
should be implemented with firmness and con­
sistency. These unfair practices are frequently 
the expression of protectionism and unilateral 
restrictions which are in contradiction and viol­
ation of Community and international agree­
ments. 
6.4. Further, the practical implementation by 
Member States of the recent Council Directive on 
technical standards and rules would seem to be a 
key factor in preventing distortion of competition 
within the Community. 
Done at Brussels, 29 September 1983. 
The Chairman 
of the Economic and Social Committee 
Fran<?ois CEYRAC 
Opinion on the proposal for a Council Decision adopting the first European strategic 
programme for research and development in information technologies (Esprit) 
The text referred to the Committee has been published in Official Journal of the Euro­
pean Communities No C 321 of 26 November 1983. 
A. LEGAL BASIS FOR THE OPINION 
On 17 June 1983 the Council referred the abovementioned proposal to the Economic 
and Social Committee in accordance with Article 198 of the Treaty establishing the 
European Economic Community.