Decision No 1/1999 of the Association Council between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part of 28 April 1999 adopting the necessary rules for the implementation of Article 63(1)(i), (1)(ii) and (2) of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part
Date: 1999-04-28
Institutions: EC–Estonia Association Council
Subjects: EU Member State, Estonia, association agreement (EU), competition policy, trade policy

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Official Journal of the European Communities

9. 6. 1999

II

(Acts whose publication is not obligatory)

COUNCIL

DECISION No 1/1999 OF THE ASSOCIATION COUNCIL

between the European Communities and their Member States, of the one part,
and the Republic of Estonia, of the other part

of 28 April 1999

adopting the necessary rules for the implementation of Article 63(1)(i), (1)(ii) and
(2) of the Europe Agreement establishing an association between the European
Communities and their Member States, of the one part, and the Republic of
Estonia, of the other part

(1999/372/EC, ECSC, Euratom)

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an
association between the European Communities and their
Member States, of the one part, and the Republic of
Estonia, of the other part, signed on 12 June 1995 and in
particular Article 63(3) thereof,

the necessary rules for

Whereas pursuant to Article 63(3) of the Europe Agree-
ment
the implementation of
Article 63(1) and (2) thereof should be adopted by the
Association Council,

HAS DECIDED AS FOLLOWS:

Estonia, of the other part, as set out in the Annex to this
Decision, are hereby adopted.

Article 2

This Decision shall be published in the Official Journal
of
and Riigi Teataja
(Estonian State Gazette).

the European Communities

Article 3

This Decision shall enter into force on the day of its
adoption.

Article 1

Done at Brussels, 28 April 1999.

The necessary rules implementing Article 63(1)(i),
(1)(ii)
and (2) of the Europe Agreement establishing an Associa-
tion between the European Communities and their
Member States, of the one part, and the Republic of

For the Αssociation Council
The President

T. H. ILVES

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Official Journal of the European Communities

L 144/17

ANNEX

IMPLEMENTING RULES FOR COMPETITION PROVISIONS APPLICABLE TO UNDERTAK-
INGS

Implementing rules for the application of the competition provisions applicable to undertakings
provided for in Article 63(1)(i), (1)(ii) and (2) of the Europe Agreement establishing an Association
between the European Communities and their Member States, of the one part, and the Republic of
Estonia, of the other part

Article 1

General principle

the prevention,

Cases relating to agreements between undertakings, deci-
sions by associations of undertakings and concerted prac-
tices between undertakings which have as their object or
effect
restriction or distortion of
competition as well as to abuses of a dominant position in
the territories of the Community or of Estonia as a whole
or in a substantial part thereof, which may affect trade
between the Community and Estonia shall be settled
according to the principles contained in Article 63(1) and
(2) of the Europe Agreement.

this purpose,

For
these cases are dealt with by the
Commission of the European Communites (DG IV) on
the Community side and the Competition Board on the
Estonian side.

The competences of the European Commission and the
Estonian Competition Board to deal with these cases shall
flow from the existing rules of the respective legislation of
the Community and Estonia, including where these rules
are applied to undertakings located outside the respective
territory.

Both authorities shall settle the cases in accordance with
their own substantative rules, and having regard to the
provisions set out below. The relevant substantive rules of
the authorities are the competition rules of the Treaty
establishing the European Community as well as the
European Coal
the
competition-related secondary legislation, for the Euro-
pean Commission, and the Estonian Competition law and
the relevant by-laws, for the Estonian Competition Board.

Steel Treaty

including

and

ECONOMIC ACTIVITIES UNDER THE EC TREATY

pean Commission and the Estonian Competition Board,
according to the rules under this Article.

2.1. Notification

2.1.1. The competition authorities shall notify to each
other those cases they are dealing with, which,
according to the general principle laid out
in
Article 1, appear to fall also under the competence
of the other authority.

2.1.2. This situation may arise in particular in cases

concerning activities that:

 involve anti-competitive activities carried out in

the other authority’s territory,

 are relevant

to enforcement activities of

the

other competition authority,

 involve remedies that would require or prohibit
conduct in the other authority’s territory.

2.1.3. Notification under this Article shall include suffi-
cient information to permit an initial evaluation by
the recipient party of any effects on its interests.
Copies of the notifications shall be submitted on a
regular basis to the Association Council.

2.1.4. Notification shall be made in advance, as soon as
possible and at the latest at the stage of an invest-
igation still far enough in advance of the adoption
of a settlement or decision, so as to facilitate
comments or consultations and to enable the
proceeding authority to take into account the other
authority’s views, as well as to take such remedial
actions it may find feasible under its own laws, in
order to deal with the case in question.

Article 2

2.2. Consultation and comity

Competence of both competition authorities

Cases under Article 63 of the Europe Agreement which
may affect both the Community and the Estonian market
and which may fall under
the competence of both
competition authorities shall be dealt with by the Euro-

the European Commission or

Whenever
the
Estonian Competition Board considers that anti-
competitive activities carried out on the territory of
authority are substantially affecting
the other
important interests of the respective Party, it may
request consultation with the other authority, or it
the other Party’s competition
may request

that

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Official Journal of the European Communities

9. 6. 1999

authority initiate any appropriate procedures with a
view to taking remedial action under its legislation
on anti-competitive activities. This is without preju-
dice to any action under the requesting Party’s
competition law and does not hamper the full
freedom of ultimate decision of the authority so
addressed.

2.3.

Finding of an understanding

The competition authority so addressed shall give
full and sympathetic consideration to such views
and factual materials as may be provided by the
requesting authority and, in particular, to the nature
of the anti-competitive activites in question, the
enterprises involved and the alleged harmful effects
on the important interests of the requesting Party.

the competition authorities

Without prejudice to any of their rights or obliga-
tions,
involved in
consultations under this Article shall endeavour to
find a mutually acceptable solution in the light of
the respective important interests involved.

Article 3

Competence of one consumption authority only

3.1. Cases falling under the exclusive competence of
one competition authority, in accordance with the
principle laid down in Article 1, and which may
affect important interests of the other Party, shall
be handled having regard to the provisions set out
in Article 2, and taking account of the principles
set out below.

3.2.

an

undertakes

the competition
In particular, whenever one of
or
authorities
proceeding in a case which is found to affect
important
the
proceeding authority shall notify this case to the
other authority, without
request by the
latter.

the other Party,

investigation

interests of

formal

Article 4

Request for information

Whenever the competition authority of a Party becomes
aware of the fact that a case, falling also or only under the
competence of
the other authority, appears to affect
important interests of the first Party, it may request in-
formation about this case from the proceeding authority.

The proceeding authority shall give sufficient information
to the extent possible and at a stage of its proceedings far
enough in advance of the adoption of a decision or settle-

ment to enable the requesting authority’s views to be
taken into account.

Article 5

Secrecy and confidentiality of information

5.1. Having regard to Article 63(7) of the Europe Agree-
ment, neither competition authority is required to
provide information to the other authority if disclo-
sure of that information to the requesting authority
is prohibited by the law of the authority possessing
the information, or would be incompatible with
important interests of the Party whose authority is
in possession of the information.

5.2. Each authority agrees to maintain, to the fullest
extent possible, the confidentiality of any informa-
tion provided to it
in confidence by the other
authority.

Article 6

Block exemptions

In the application of Article 63 of the Europe Agreement
as provided for in Articles 2 and 3 above, the competition
authorities shall ensure that the principles contained in
the block exemption regulations
in the
Community shall be applied in full. The Estonian
Competition Board shall be informed of any procedure
related to the adoption, abolition or modification of block
exemptions by the Community.

in force

Where such block exemption Regulations encounter
serious objections on the Estonian side, and having regard
to the approximation of legislation as foreseen in the
Europe Agreement, consultations shall take place in the
Association Council, in accordance with the provisions
contained in Article 9.

The same principles shall apply regarding other signifi-
cant changes in the Community or Estonian competition
policies.

Article 7

Merger control

With regard to mergers which fall within Council Regula-
tion (EEC) No 4064/89 of 21 December 1989 on the
control of concentrations between undertakings (1) and
which have a significant impact on the Estonial economy,
the Estonian Competition Board shall be entitled to
express its view in the course of the procedure, taking
into account the time limits as provided for in the afore-
mentioned Regulation. The European Commission shall
give due consideration to that view, without prejudice to
any action under the Parties’ respective competition laws.

(1) OJ L 395, 30.12.1989, p. 1. Regulation as last amended by
Regulation (EC) No 1310/97 (OJ L 180, 9.7.1997, p. 7).

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Article 8

Activities of minor importance

8.1. Anti-competitive activities whose effects on trade
between the Parties or on competition are negli-
gible, do not fall under Article 63(1) of the Europe
Agreement, and therefore, are not to be treated
under Articles 2 to 6 of the present implementing
rules.

8.2. Negligible effects within the meaning of paragraph
8.1 are generally presumed to exist when:
 the aggregate annual turnover of the partici-
pating undertakings does not exceed ECU 200
million, and

 the goods or services which are the subject of
the agreement together with the participating
undertakings’ other goods or services which are
considered by users to be equivalent in view of
their characteristics, price and intended use, do
not
the total
market for such goods or services in the area of
the common market affected by the agreement,
and the Estonian market affected by the agree-
ment.

represent more than 5 % of

Article 9

Association Council

9.1. Whenever the procedures provided for in Articles 2
and 3 do not lead to a mutually acceptable solution,
as well as in other cases explicitly mentioned in the
present implementing rules, an exchange of views
shall take palce in the Association Council at the
request of one Party within three months following
the request.

9.2.

Following this exchange of views, or after expiry of
the period referred to in paragraph 9.1, the Associa-
tion Council may make appropriate recommenda-
tions for the settlement of these cases, without prej-
udice to Article 63(6) of the Europe Agreement. In
these recommendations, the Association Council

may take into account any failure of the requested
authority to give its point of view to the requesting
authority within the period referred to in paragraph
9.1.

9.3. These procedures in the Association Council are
without prejudice to any action under the respect-
ive competition laws in force in the territory of the
Parties.

Article 10

Negative conflict of competence

When both the European Commission and the Estonian
Competition Board consider that neither of
them is
competent to handle a case on the basis of their respec-
tive legislation an exchange of views shall take place on
request in the Association Council. The Community and
Estonia shall endeavour to find a mutually acceptable
solution in the light of the respective important interests
involved with the support of the Association Council,
which may make appropriate recommendations, without
prejudice to Article 63(6) of the Europe Agreement, and
the rights of individual Member States of the European
Communities on the basis of their competition rules.

ECONOMIC ACTIVITIES UNDER THE ECSC TREATY

Article 11

Treaty establishing the European Coal and Steel
Community (ECSC)

The provisions contained in Articles 1 to 6 and 8 to 10
shall also apply with respect to the coal and steel sector.

Article 12

Administrative assistance (languages)

European Commission

The
Estonian
Competition Board will provide for practical agreements
for mutual assistance or any other appropriate solution
concerning in particular the question of translations.

and

the