WRITTEN QUESTION P-3415/02 by Harald Ettl (PSE) to the Commission. Notification of the Pfizer-Pharmacia concentration, announcement in OJ C 265, 31.10.2002, p. 2.
Date: 2002-11-25
Institutions: European Parliament, Provisional data
Subjects: Austria, consumer protection, dominant position, economic concentration, job cuts, merger control, pharmaceutical industry

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6.2.2004

including at the 58th
The Union has consistently underlined its opposition to contemporary slavery,
session of the United Nations Commission on Human Rights (CHR). The Union also expressed its concern
at incidences of forced labour in the resolution on Sudan, which it introduced at the last CHR.

The Commission is aware of slavery occurring in some Sudanese states. Where possible, it tries to discuss
the issue with the authorities. However, it also acts through support to non-governmental organisations
(NGOs) and civil society. Article 8 of the Cotonou Agreement is the basis for the on-going political
dialogue with Sudan, where such topics can be raised by the Community. This issue will be assessed
during the next Troika visit to the Sudan.

The Commission has followed with great interest the work of the International Eminent Persons Group
(IEPG) in the framework of the mission of the United States Presidential Envoy for Peace in the Sudan,
Senator J. Danforth. They were requested to investigate the situation on Slavery, Abduction and Forced
for a better
Servitude in the Sudan. The Commission considers the report as a very useful
understanding of these sensitive matters. Furthermore, as suggested by the IEPG, deeper research and
analysis is needed.

tool

Finally, funding is being considered for projects tackling the issue of trafficking, child labour and slavery.

(2004/C 33 E/021)

WRITTEN QUESTION P-3415/02

by Harald Ettl (PSE) to the Commission

(25 November 2002)

Subject: Notification of the Pfizer-Pharmacia concentration, announcement in OJ C 265, 31.10.2002, p. 2

How closely did the Commission/DG Competition examine whether the Pfizer-Pharmacia concentration
will create or strengthen a dominant position as a result of which effective competition will be significantly
impeded on the common market or in a substantial part of it, in particular in view of the fact that by
taking over Pharmacia Pfizer will become the world’s largest pharmaceuticals company? To what extent
can conditions be imposed with a view to preventing the creation or strengthening of a dominant position
in certain product sectors which would be incompatible with Article 2(3) of Regulation (EEC) No 4064/89
(concentration control regulation)?

By means of the concentration Pfizer will secure a dominant position in many product markets which may
result in a worsening of the supply situation for consumers, in the form of a reduced variety of products
and higher prices. How closely did the Commission/DG Competition consider this aspect, and what
conclusions did it come to? What conditions were imposed with a view to preventing such a development?

Did the Commission/DG Competition consider whether the concentration in question is consistent,
pursuant to Article 2(1) of the concentration control regulation, with the need to preserve and develop
effective competition within the common market in view of the structure of all the markets concerned,
given that, as a result of the concentration, some 30 000 to 40 000 jobs will be lost around the world,
including 10 000 in Europe and a third of the existing jobs in Austria?

Answer given by Mr Monti on behalf of the Commission

(13 January 2003)

When the Commission examines a merger, the aim is always to establish whether the operation will create
or strengthen a dominant position as a result of which effective competition will be significantly impeded
in the common market or in a substantial part of it (Article 2.2 of Regulation (EEC) No 4064/89,

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‘the Merger Regulation’) (1). This has also been the case with this particular merger. The Directorate General
for Competition has launched a broad market investigation, including detailed questionnaires to customers
and competitors in all relevant markets. The fact that the merged entity will become the world’s largest
pharmaceutical company does not alter the scope of the investigation (cid:1) to detect strengthening or
creation of dominance.

When a concentration raises serious doubts as to its compatibility with the common market,
the
undertakings concerned may suggest remedies to remove the competition concerns. If the Commission
finds the proposed remedies to be sufficient and remove the serious doubts, it may decide to declare the
concentration compatible with the common market, on the basis of Article 6.2 of the Merger Regulation.
A typical remedy would be to divest the part of the business in the markets where serious doubts arise.
Proposed divestitures are then subject to scrutiny by the Commission which will ask customers and
competitors for their views as to whether the proposals will effectively remove competition concerns. In
addition to divestitures, the Commission can prevent the creation or strengthening of a dominant position
in certain product markets by declaring the whole operation incompatible with the common market and,
effectively, to prohibit it. Such a decision would be taken only after an in-depth investigation and only in
those cases where the proposed undertakings do not adequately address the competition concerns.

As the investigation of
Commission is not in a position to comment on the details or the likely outcome of the case.

the proposed merger between Pfizer and Pharmacia is still ongoing,

the

The preservation and development of effective competition, which is the aim of merger control, focuses in
large measure on the potential economic impact of the transaction upon consumers. Although the
restructuring caused by mergers may have effects on employment, such considerations are not within the
remit of an economic analysis of the specific effects of a transaction upon competition in a particular
market. However,
the
employees, a right to express their opinion in writing and/or orally. In the present case, interested third
parties have been invited to submit their observations on the operation in a document published on
31 October 2002 in the Official Journal (2).

the Merger Regulation affords third parties,

including the representatives of

(1) Council Regulation (EEC) No 4064/89 of 21 December 1989 on the control of concentrations between

undertakings, OJ L 395, 30.12.1989.

(2) OJ C 265, 31.10.2002.

(2004/C 33 E/022)

WRITTEN QUESTION P-3755/02

by Antonios Trakatellis (PPE-DE) to the Commission

(16 December 2002)

Subject: Compensation to farmers for havoc wrought by bad weather

The latest spell of bad weather in the regions of Macedonia and Thessaly caused incalculable damage to
crops and property and severe disruption to transport. A large part of agricultural production disappeared
under water and much of the road network was paralysed as a result of defects in construction.

Will the Community provide financial aid to the above regions to help restore normal conditions as soon
as possible in the areas affected by natural disasters, pursuant to Council Regulation (EC) No 2012/2002 (1)
of 11 November 2002?

What measures have the Greek authorities taken to commit the special financial resources required to
cover the abovementioned damage?

Given that Greece has suffered similar situations in the past, will the Commission say whether any
subsidies that Greece may have received pursuant to the above regulation were utilised and, if not, whether
the unused portion was returned to the Commission?

(1) OJ L 311, 14.11.2002, p. 3.