WRITTEN QUESTION P-0164/03 by Francesco Speroni (NI) to the Commission. Competition between banks.
Date: 2003-01-24
Institutions: European Parliament, Provisional data
Subjects: Italy, bank, bank charges, bank deposit, competition law, consumer protection, price agreement

C 280 E/38

Official Journal of the European Union

EN

21.11.2003

I also expressed concern that
www.euronews.net may likewise be under threat.

the information in Portuguese currently published on the website

With more than 200 million speakers, Portuguese is the sixth most widely spoken language at world level
and stands in third place among European languages used as world languages, after English and Spanish.

The answer already provided by the Commission and forwarded on 6 January 2003 states, inter alia, that
‘the Commission is involved in ongoing discussions about the evolving structure of Euronews. To date
Euronews has been uniquely pan-European in its coverage and the Commission would like to ensure that
this continues under the new regime, together with the use of a maximum of Union languages, including
Portuguese’.

This clear position is to be applauded, and it is to be hoped that it is a firm position.

However, the Commission did not answer the question relating to the alleged dismissal of 16 Portuguese
members of staff.

Does the Commission have any information on the alleged dismissal of 16 Portuguese members of the
Euronews staff? What measures has it taken or will it take to ensure, in line with its stated intention, that
Euronews services continue to be provided ‘with the use of a maximum of Union languages, including
Portuguese’?

(1) OJ C 242 E, 9.10.2003, p. 54.

Answer given by Mr Prodi on behalf of the Commission

(5 March 2003)

The Commission would like to remind to the Honourable Member that Euronews has no obligation to
report on its staff policy since the Convention signed with the Commission does not cover any questions
related to staff, which remain an internal matter for EuroNews.

Moreover, the Commission can advise that EuroNews and the public broadcaster Radiotelevisão Portuguesa
(RTP) have just concluded the renewal of their 1999 agreement to pursue their co-operation and continue
with the production of EuroNews’ Portuguese language version.

This agreement also allows the channel to maintain its current multilingual character.

(2003/C 280 E/039)

WRITTEN QUESTION P-0164/03

by Francesco Speroni (NI) to the Commission

(24 January 2003)

Subject: Competition between banks

Most Italian banks impose hefty charges on account holders (EUR 100 or more) if they decide to close a
current account. Charges are higher still in the case of transfers of securities (even intangible ones).

Charges are also due if a client chooses to withdraw his custom in response to a unilateral decision on the
part of the bank to alter the conditions applicable in a way which is disadvantageous to the client.

This obviously complicates any decision to switch to a rival bank, since the financial factors to be weighed
up include not only the terms and conditions offered by the second bank but also the hefty charges
imposed by the first.

The fact that the amount of these ‘departure taxes’ varies greatly according to the bank concerned suggests,
furthermore, that the amount is not related to the cost of providing an actual service but is intended as a
means of discouraging clients from withdrawing their custom.

Is such a practice to be regarded as being in accordance with the rules on free competition?

21.11.2003

EN

Official Journal of the European Union

C 280 E/39

Answer given by Mr Monti on behalf of the Commission

(18 February 2003)

Under Union competition law, prices cannot be fixed in a concerted manner, that is by agreement,
decision or concerted practices between undertakings (Article 81 of the EC Treaty). For any intervention
under Article 81, an allegation of collusive behaviour would need to be substantiated with evidence.
The indication in the written question by the Honourable Member that the amount of the charges ‘varies
greatly according to the bank concerned’, seems to indicate that there is no such collusion.

Article 82 of the EC Treaty prohibits the abuse of a dominant position. In assessing possible dominance,
account is taken of factors such as market share, the presence in the market of credible competitors and
other aspects which may allow the firms involved to avoid competition. On the basis of the information
available to the Commission, no individual bank has a dominant position on the market for current
accounts in Italy. Given that allegedly most Italian banks are charging high fees for the closure of accounts,
Article 82 might be applied if collective dominance could be established. However, the Commission has no
elements to suggest that the majority of Italian banks do not compete amongst each other and are not
exposed to actual or potential competition from others on the market for current accounts.

Furthermore, the Commission would point out that Community competition law applies where trade
between Member States may be appreciably affected. It appears from the information provided that the
competition issues are mainly related and confined to the Italian market; as a result
the National
Competition Authority (which for the banking sector is the Banca d’Italia) would seem to be better placed
to assess the competition concerns raised in the question. The Commission has informed the Banca d’Italia
of the concern raised.

(2003/C 280 E/040)

WRITTEN QUESTION E-0172/03

by Theresa Villiers (PPE-DE) to the Commission

(29 January 2003)

Subject: Equitable Life

Has the Commission conducted a full investigation into the role the UK Government played in the

1.
fall of Equitable Life? If not, why not, and if so what were the findings?

Does the Commission believe that

2.
insurance, in its handling of the Equitable Life scandal?

the UK Government has breached EU regulations on life

3.
If the UK Government is found to be in breach of EU legislation on life insurance, will the
Commission press the UK Government to pay compensation to the Equitable Life customers? What
limitation period (time limit for bringing legal claims) will apply to compensation claims?

Answer given by Mr Bolkestein on behalf of the Commission

(6 March 2003)

As the Commission indicated in its response to Written Question E-2415/01 by Mr Ford (1), the
1.
Commission is aware of the difficulties confronting policyholders of Equitable Life. The Commission has
not conducted an investigation into the role of the British Government. The Commission is aware the
British Government has announced a full independent enquiry, headed by Lord Penrose, to examine the
circumstances leading to these difficulties

At the present time, the Commission is not aware of any infringement of the Community insurance

2.
directives in connection with Equitable Life.