WRITTEN QUESTION E-3160/02

by Rosa Miguélez Ramos (PSE) to the Commission

(5 November 2002)

Subject: Illegal commercial practices by Greek aquaculture enterprises

The answer given by the Fisheries Commissioner to my question E-2485/02(1) was debatable and calls for further clarification.

First of all, the prices of sea bass and sea bream did not recover during 2002, since comparisons cannot be drawn between prices during the summer months (when there is greater demand and lower supply by the Greek enterprises which sell at a loss) and prices in October/November, which are always lower. Despite these seasonal variations, there has been a downward trend since 1999.

Is the Commission aware that sea bream producers are offering trades at the Mercamadrid market sea bream at prices of EUR 2,10 per kilo (for fish weighing from 300-400 grammes) and EUR 2,90 (for fish weighing 400-600 grammes) and that these prices are well below the production costs of between EUR 4,34 and EUR 4,84 determined by the Committee for Mediterranean Aquaculture (Aquamedia) of the European Federation of Aquaculture Producers (FEAP) in October 2001 in Edinburgh? Does the Commission not think that the Greek enterprises practice of selling at a loss is designed to eliminate competitors in other countries and consolidate their dominant position on the European market? Otherwise, how can the Commission explain that, in a single market such as ours, a company is able to sell huge quantities of fish at prices 30 % lower than the average production cost over such a long period?

In his answer, Commissioner Fischler also states that the Commission did not receive formal complaints with regard to the Greek producers commercial behaviour'. However, producers' associations in France, Italy, Catalonia and Anadalucia made written complaints to the then Director-General for Fisheries, Steffen Smidt, and, subsequently, to the Commissioner for Fisheries.

Why has the Commission taken no action on these complaints or why has it not considered acting on its own initiative? Have the services of the DG for Competition been informed of this matter? Is the Commission not aware that its failure to act will lead to the closing of many companies and will work to the benefit of a limited oligopoly, based in Greece, which has already eliminated small Greek companies in the sector?

What is the Commission waiting for before taking steps to combat these irregular commercial practices, which are in breach of the rules of competition and are designed to eliminate rival companies from other producer countries?

(1) OJ C 52 E, 6.3.2003, p. 178.

Answer given by Mr Fischler on behalf of the Commission

(5 December 2002)

The Commission continues to follow the evolution of market prices for seabass and seabream. The Commission has received some letters from various sources complaining against low prices, but none of them has gone beyond vague allegations of fraud in relation to Greek producers, nor has provided serious indications of violations of applicable Community regulations. The fact that some producers are offering fish at very low prices does not necessarily imply fraud or an attempt to abuse of a dominant position. Low selling prices only raise concern under Community competition law if they are offered by a dominant company (or a group of collectively dominant companies) and if they are predatory (i.e. below its/their own costs, not below the average cost of its/their competitors) or discriminatory. The information given by the Honourable Member does not suggest that the Greek companies concerned are dominant and, even if they were, that they charge prices in violation of Article 82 of the EC Treaty which condemns abuses of a dominant position. Should the Honourable Member hold supplementary information on these issues, the Commission's competition department would, of course, be ready to examine it.

The Commission is obviously aware of the fact that prices as low as those at Mercamadrid signalled by the Honourable Member may occur. However the Commission only relies on official statistics (FAO Globefish) and according to them, seabass and seabream average European prices recovered in December 2001 and were since then above the production costs every month, with the exception of seabream prices for a short period (January-March 2002).

The trend to reducing prices for seabass and seabream in the last three years might be due either to the fact that the industry is approaching maturity, or to a structural overproduction of these fish. The latter hypothesis was denied by all the Member States representatives attending the special meeting of 16 May 2002. To try to clarify this aspect, a new special meeting with Member States and producers representatives will take place in November 2002 in Brussels. In addition, in the incoming months the Commission will finance a study on the market of seabass and seabream.

The Commission will inform the Honourable Member of the evolution of this issue in the future.