WRITTEN QUESTION P-0831/00 by Claude Desama (PSE) to the Commission. Regulation 2790/1999 providing for a block exemption for vertical agreements.
Date: 2000-03-10
Institutions: European Parliament, Provisional data
Subjects: amendment of a law, distributive trades, drafting of EU law, motor vehicle industry, service industry, vertical agreement

13.2.2001

EN

Official Journal of the European Communities

C 46 E/55

(2001/C 46 E/059)

WRITTEN QUESTION P-0831/00

by Claude Desama (PSE) to the Commission

(10 March 2000)

Subject: Regulation 2790/1999 providing for a block exemption for vertical agreements

Regulation 2790/1999 providing for a block exemption for vertical agreements (1) is having an adverse
effect on tens of thousands of small and medium-sized undertakings forming part of structured distribution
networks, in particular in the automobile sector.

The new block exemption does not contain any provision enabling suppliers to be penalised for any
infringements of the rights of their distributors and retailers.

In order to avoid jeopardising the existence of many SMEs, which are the driving force behind our
European economy, is it not essential to add to the regulation a (cid:145)hard core(cid:146) restriction prohibiting licensors
from taking advantage of the economic over-dependence of SMEs involved in distribution and the service
sector?

(1) OJ L 336, 29.12.1999, p. 21.

Answer given by Mr Monti on behalf of the Commission

(12 April 2000)

In accordance with Article 2(5) of Commission Regulation (EC) No 2790/1999 on the application of
Article 81(3) (formerly Article 85(3)) of the Treaty to categories of vertical agreements, the Regulation does
not apply to agreements under Commission Regulation (EC) No 1475/95 on the application of Article
81(3) of the Treaty to certain categories of motor vehicle distribution and servicing agreements (1).
Consequently, small and medium-sized firms (SMEs) operating as dealers in the motor vehicle sector are
not currently affected by the new regulations on vertical restrictions.

Regulation (EC) No 1475/95 will remain in force until 30 September 2002. Looking ahead to that date,
the Commission is currently drawing up the evaluation report provided for by Article 11 of that
regulation. On the basis of this report, the Commission will draft its proposals for the motor vehicle
distribution sector, on which the parties concerned and the Member States will be consulted.

Regarding the more general question raised by the Honourable Member on the lack of (cid:145)hard core(cid:146)
restrictions in Regulation (EC) No 2790/1999 to prohibit suppliers from taking advantage of the economic
dependence of their distributors, the following points are of relevance:

(cid:129) the purpose of the reform instigated by the Commission with the introduction of Regulation (EC) No
2790/1999 is to establish a competition policy on vertical restrictions which has a real economic
basis and which has, at its core, an analysis of the effects of vertical agreements on the market.
Community competition rules do not cover contractual relations between the parties with a view to
readjusting the balance of power. The objective of these rules is solely to protect competition and to
discourage the introduction of anti-competitive practices, particularly by suppliers with greater market
strength.

(cid:129) however, the Commission(cid:146)s new approach still offers SMEs in the distribution sector substantial
guarantees. Firstly, in contrast to the old rules on block exemptions applicable to certain forms of
distribution, Regulation (EC) No 2790/1999 does not cover firms whose market share is greater than
30 %, which in itself is a disincentive to suppliers with considerable market strength to abuse the
economically-dependent situation of their distributors.

(cid:129) secondly, the Regulation contains a list of (cid:145)hard core(cid:146) restrictions which involve the loss of the block
exemption and whose content broadly reflects Community case law on restrictions on the sales
activities of distributors.

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Official Journal of the European Communities

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13.2.2001

(cid:129) thirdly, the Regulation covers for the first time vertical agreements concluded by retailers(cid:146) associations
whose members are SMEs, which should allow such firms to strengthen their market position both as
regards their suppliers and integrated distribution chains.

(cid:129) fourthly, the new legal framework provides for specific mechanisms to allow competition authorities
to act against anti-competitive practices even where the firm(cid:146)s market share is less than 30 %. These
involve either the withdrawal of the benefit of the Regulation, which can be done by the Commission
(Article 6) or, in certain cases, by the competent authority in the Member State concerned (Article 7),
or the procedure whereby the Commission declares by regulation that, where parallel networks or
similar vertical restraints cover more than 50 % of a relevant market, the field of application of the
Regulation should be limited.

(cid:129) finally, under Regulation (EC) No 2790/1999, block exemptions do apply to non-compete obligations
imposed on distributors only if their duration is less than five years, while, under the previous
arrangements, such obligations could apply to dealers for up to ten years, and even for an indefinite
period in some cases. The new rules offer distributors a real opportunity to opt for alternative
suppliers and, consequently, to exert direct pressure on their suppliers, which is more effective than
trying to legislate in detail on the rights and obligations of the contracting parties.

(1) OJ L 145, 29.6.1995.

(2001/C 46 E/060)

WRITTEN QUESTION E-0833/00

by Bertel Haarder (ELDR) to the Commission

(21 March 2000)

Subject: Right to apply for compensation for expropriated property in Poland

New rules in Poland have meant that only Polish nationals who have resided in Poland for more than five
years may apply for compensation for private property expropriated after the second world war. This
means that people who were forced to flee from Poland during and after the second world war cannot
apply for compensation from the Polish state.

Can the Commission state whether it is aware of this issue and, if so, whether it has been discussed in
connection with Poland(cid:146)s negotiations for EU membership?

Answer given by Mr Verheugen on behalf of the Commission

(27 April 2000)

As indicated in the reply it gave to Oral Question H-0642/99 by Mr Titley during question time at
Parliament(cid:146)s November 1999 part-session (1), the Commission follows with great interest the debate in
Poland on the new draft law of the Polish government regarding the restitution of confiscated property.

The Commission is fully aware that this issue is complex and primarily for Poland(cid:146)s internal policy. As for
existing Member States, the creation of schemes for restitution falls within the competence of Poland.

Amendments proposed to the restitution law which relate to nationality and residence clauses are currently
contested in the Sejm and subject to a review by the Constitutional Tribunal for their conformity with the
Polish constitution. It remains to be seen what the final scope of the new legislation will be.

The Commission would welcome any progress in passing the law, will continue to monitor the issue
closely, and will report on this in the next regular report.

(1) Debates of the European Parliament (November 1999).