WRITTEN QUESTION No. 2532/96 by Amedeo AMADEO to the Commission. Competition policy
Date: 1996-10-08
Institutions: AMADEO, European Parliament
Subjects: competition law, competition policy, market access, merger, monopoly, single market













EUR-Lex - 91996E2532 - EN






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91996E2532

WRITTEN QUESTION No. 2532/96 by Amedeo AMADEO to the Commission. Competition policy  


Official Journal C 011 , 13/01/1997 P. 0103 





WRITTEN QUESTION E-2532/96 by Amedeo Amadeo (NI) to the Commission (8 October 1996)Subject: Competition policyIndustries evolve in anticipation of the emergence of new markets. New alliances with global implications have been have been submitted to the Commission for approval. An analysis of these cases demonstrates that, if applied in a realistic manner, the existing competition rules allow due account to be taken of the processes of innovation and globalization. However, an alliance should not necessarily be authorized simply because it is intended to provide access to emerging markets. Although alliances of this kind should be permitted, or even encouraged, when they stimulate competition, they are unacceptable when they obstruct or undermine the process of dismantling monopolies.Given the above, how does the Commission intend to prevent alliances between large companies from excluding smaller companies (particularly SMEs) from the market?Answer given by Mr Van Miert on behalf of the Commission (18 October 1996)The Commission takes account of technological change and globalization of the economy when analysing and hence defining the relevant market. It is also aware that rapid technological change may call for new forms of cooperation between businesses.When vetting mergers in the light of Regulation (EEC) No 4064/89 ((OJ L 395, 30.12.1989. )) or examining agreements in the light of Article 85 of the EC Treaty, the Commission is vigilant, however, in ensuring that the practical effect of such agreements is not to seal off markets or to damage efficiency.In the case of mergers, the Commission verifies that they do not create or strengthen a dominant position on the relevant market. In the case of alliances caught by Article 85(1), it would examine whether the conditions for an exemption under Article 85(3) were met. In other words, the agreement in question must contribute to promoting technical or economic progress while allowing consumers a fair share of the resulting benefit. The restrictive features of the agreement must, however, be indispensable and must not afford the firms concerned the possibility of eliminating competition in respect of a substantial part of the products in question.Taking these elements into account ensures that, following a merger or some other form of cooperation, effective competition is safeguarded for all firms, including small and medium-sized enterprises.The Commission recently arranged for some forty studies to be carried out into the impact of measures relating to establishment of the internal market (Single Market Review 1996). Some of them examine the links between the single market and competition, particularly in the case of alliances. The Commission intends to send to the Council before the end of the year a communication summarizing the findings of the studies.