WRITTEN QUESTION E-3482/00

by Antonios Trakatellis (PPE-DE) to the Commission

(10 November 2000)

Subject: Independent operation of national competition authorities: appointment of the Greek competition authority by designation and failure to take action in the Minoan Lines case

In view of the proposal that the regulations on the application of Articles 81 and 82 of the EC Treaty (dealing with competition) should be amended and the recent sinking of the Express Samina car ferry, which revealed the monopoly situation and distortion of competition brought about in both the domestic and European coastal shipping markets through the preferential and improper issue by the Ministry for Merchant Shipping of exclusive licences of expediency to Minoan Lines, and also because of the Greek competition commission's failure to take action regarding the ministry's supplying of exclusive licences of expediency to the firm in question,

given the geographical distribution of the market in question, abuse of a dominant position and charging of excessive prices:

1. How is it possible for a change to be requested to the EU's competition system, involving the shifting of exclusive responsibilities deriving from Articles 81 and 82 from the Community to the Member States and the competent national competition authorities, without first having ensured that legal certainty exists, that members of the 15 EU national competition authorities are appointed in an unbiased manner and that the authorities operate independently?

2. Is the Commission aware that under Law 2837/2000 of 1 August 2000(1) the president and members of the Greek competition commission are simply designated, since they are all appointed by the Minister for Development and supervised by the government, and what measures will the Commission take to ensure that the members of the competition commission are chosen in an unbiased manner and that the commission operates independently?

3. How does the Commission view the Greek competition commission's failure to take action, and the improper issue of exclusive licences of expediency to Minoan Lines, and why has the Commission not taken action regarding the violation of Community safety rules?

(1) Government Journal Issue 178, 3 August 2000.

Answer given by Mr Monti on behalf of the Commission

(22 December 2000)

The Honourable Member refers to the Commission's proposal for a new regulation implement-ing Articles 81 and 82 (ex Articles 85 and 86) of the EC Treaty(1). In accordance with Article 83 (ex Article 87) of the EC Treaty, the Parliament is currently being consulted on this proposal.

1. and 2. As set out in the explanatory memorandum to the proposal the Commission considers that companies will benefit from an appropriate level of legal certainty under the proposed new implementing system.

The proposed new implementing system will enable national authorities to become more active in the enforcement of the Community competition rules. The Commission's proposal foresees an obligation on the Member States to empower their national authorities to apply Articles 81 and 82 of the EC Treaty and lays the foundation for a network in which the Commission and the Member States' competition authorities will work closely together in the implementation of the Community competition rules. The proposal also maintains the Commission's own power to step in against infringements of Articles 81 and 82 of the EC Treaty, including a rule that once the Commission opens proceedings, national authorities are de-seised.

The Commission considers that Member States' competition authorities are generally well equipped to co-operate in the network. The network will serve to further foster a common competition culture in Europe. Member States are already making efforts to prepare for the implementation of the new enforcement system. At this stage the Commission does therefore not see fit to propose any further measures, e.g. to harmonise procedural rules applicable to national authorities.

3. The possible competition problems mentioned by the Honourable Member have no perceptible repercussions outside Greece and therefore are not likely to affect trade between Member States appreciably. The Community competition rules therefore do not apply. Independently of the reform of the implementing regulation referred to above, it is therefore for the Greek authorities to remedy the problems identified by the Honourable Member.

Greece enjoys a temporary exemption until 1 January 2004 from Community legislation providing for freedom to provide maritime cabotage services. In view of the exemption, the Commission considers that it currently has no scope for intervening concerning the current Greek licensing system.

In any event, after the accident of the Express Samina, the Commission asked the Greek Government on 28 September 2000

to submit all relevant information to ascertain the compliance of the passenger ship fleet with the body of Community law on maritime safety. As regards the Express Samina, the information included copies of the safety certificates, proofs concerning the good functioning of the registration system for passengers and the respect of the requirements on the training of the seafarers.

The Commission is currently evaluating the information submitted by the Greek government and, once the facts are established, will adopt the appropriate measures.

(1) COM(2000) 582.