2005/466/EC: Decision No 1/2004 of the EU-Morocco Association Council of 19 April 2004 adopting the necessary rules for the implementation of the competition rules
Date: 2004-04-19
Institutions: EEC–Morocco Cooperation Council
Subjects: Morocco, administrative cooperation, association agreement (EU), competition law, free-trade area, technical cooperation

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II

(Acts whose publication is not obligatory)

COUNCIL

DECISION No 1/2004 OF THE EU-MOROCCO ASSOCIATION COUNCIL

of 19 April 2004

adopting the necessary rules for the implementation of the competition rules

(2005/466/EC)

THE EU-MOROCCO ASSOCIATION COUNCIL,

HAS DECIDED AS FOLLOWS:

Having regard to the Euro-Mediterranean Agreement estab-
lishing an association between the European Communities and
their Member States, of the one part, and the Kingdom of
Morocco, of the other part (1) (the Agreement),

Whereas:

(1)

(2)

(3)

A free trade area is to be established between the EU and
Morocco by 28 February 2012 at the latest.

Article 36(3) of the Agreement provides for the existence
of administrative cooperation arrangements between the
Parties to facilitate the implementation of paragraphs 1
and 2 of
the said Article, and for the possibility of
adopting technical cooperation measures.

Article 36(3) of the Agreement provides that the Asso-
ciation Council may adopt the necessary rules for the
implementation of
the competition rules within five
years of the entry into force of the Agreement,

Sole Article

A mechanism of cooperation between the Parties’ autho-
1.
rities responsible for the implementation of competition rules is
established in the Annex.

The Parties’ competition authorities shall inform the Asso-
Internal Market Subcommittee on the
the
the cooperation established under

2.
ciation Committee’s
implementation of
mechanism referred to above.

This Decision shall enter into force on the day of its

3.
adoption.

Done at Brussels, 19 April 2004.

For the Association Council

B. COWEN

(1) OJ L 70, 18.3.2000, p. 2. Agreement as last amended by Exchange
of Letters of 30 December 2003 (OJ L 345, 31.12.2003, p. 119).

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ANNEX

EU-MOROCCO ASSOCIATION AGREEMENT
Mechanism of cooperation between the Parties’ competition authorities responsible for the implementation of
competition rules

CHAPTER I

GENERAL PROVISIONS

1. Objectives

1.1. Cases relating to practices contrary to Article 36(1)(a) or (b) of the Agreement shall be dealt with by applying the
in order to avoid adverse effects on trade and economic development and the possible

appropriate legislation,
negative impact that such practices may have on the other Party’s important interests.

1.2. The competences of the Parties’ competition authorities to deal with these cases shall flow from the existing rules of
including where these rules are applied to undertakings located outside their

their respective competition laws,
respective territories.

1.3. The purpose of these rules is to promote cooperation and coordination between the Parties in the application of
their competition laws in order to ensure that restrictions on competition do not block or cancel out the benefits
which should be ensured following the progressive liberalisation of trade between the European Community and
Morocco.

2. Definitions

For the purposes of these rules:

(a)

‘competition law’ shall mean:

(i) for the European Community (the Community), Articles 81 and 82 of the EC Treaty, Council Regulation
(EEC) No 4064/89 of 21 December 1989 on the control of concentrations between undertakings (1) and
related secondary legislation adopted by the Community;

(ii) for Morocco, the Price Liberalisation and Free Competition Act (No 6/99) of 2 rabii I 1421 (5 June 2000),

and related secondary legislation;

(b) ‘competition authority’ shall mean:

(i) for the Community, the Commission of the European Community as to its responsibilities pursuant to the

competition law of the Community;

(ii) for Morocco, the Deputy Ministry for Economic and General Affairs and the Upgrading of the Economy;

(c)

‘enforcement activity’ shall mean any application of competition law by way of investigation or proceeding
conducted by the competition authority of a Party, which may result in penalties or remedies.

(d) ‘anti-competitive activity’ and ‘conduct and practices which restrict competition’ shall mean any conduct or
transaction that is impermissible under the competition laws of a Party and may be subject to penalties or
remedies.

CHAPTER II

COOPERATION AND COORDINATION

3. Notification
3.1. Each Party’s competition authority shall notify the other of its enforcement activities where:

(a)

the notifying Party considers them relevant to enforcement activities of the other Party;

(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. 1).

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(b) they may significantly affect important interests of the other Party;

(c)

they relate to restrictions on competition which may directly and substantially affect the territory of the other
Party;

(d) they involve anti-competitive activities carried out mainly in the territory of the other Party;

(e)

they condition or prohibit action in the territory of the other Party.

3.2. As far as possible, and provided that this is not contrary to the Parties’ competition laws and does not adversely
affect any investigation being carried out, notification shall take place during the initial phase of the procedure, to
enable the notified competition authority to express its opinion. The notified authority shall give due consideration
to the opinions received when taking decisions.

3.3. The notifications provided for in Article 3.1. shall be detailed enough to permit an evaluation in the light of the

interests of the other Party.

3.4. The Parties undertake to give the above notification wherever possible, depending on available administrative

resources.

4.

Exchange of information and confidentiality

4.1. The Parties shall exchange information which will facilitate the effective application of their respective competition

laws and promote a better understanding of their respective legal frameworks.

4.2. The exchange of information shall be subject to the standards of confidentiality applicable under the law of each
Party. Confidential
if disseminated, could
information whose dissemination is expressly prohibited or which,
adversely affect the Parties, shall not be provided without the express consent of the source of the information.
Each competition authority shall maintain, to the fullest extent possible, the confidentiality of any information
provided to it in confidence by the other competition authority under the rules and shall oppose, to the same extent,
any application for disclosure of such information by a third party that is not authorised by the competition
authority that supplied the information.

5. Coordination of enforcement activities

5.1. Each competition authority may notify the other of its willingness to coordinate enforcement activities with respect

to a specific case. This coordination shall not prevent the Parties from taking autonomous decisions.

5.2. In determining the extent of coordination, the competition authorities shall consider:

(a)

the effective results which coordination could produce;

(b) the additional information to be obtained;

(c)

the reduction in costs for the competition authorities and the economic agents involved; and

(d) the applicable deadlines under their respective legislation.

6. Consultation when important interests of one Party are adversely affected in the territory of the other

Party

6.1. Each Party shall, wherever possible and in accordance with its own legislation, take into consideration the important
interests of the other Party in the course of its enforcement activities. A competition authority which considers that
an enforcement activity being conducted by the competition authority of the other Party under its competition law
may affect the important interests of the Party it represents should transmit its views on the matter to, or request
consultations with, the other competition authority. Without prejudice to the continuation of its action under its
competition laws or to its full freedom of ultimate decision, the competition authority so addressed should give full
and sympathetic consideration to the views expressed by the requesting competition authority, and in particular to
any suggestions as to alternative means of fulfilling the needs and objectives of the enforcement activity.

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6.2. A competition authority which considers that one or more undertakings situated in one Party’s territory are or have
been engaged in anti-competitive activities of whatever origin that are substantially and adversely affecting the
interests of the Party it represents may request consultations with the other competition authority, recognising
that entering into such consultations is without prejudice to any action under its competition laws and to the full
freedom of ultimate decision of the competition authority concerned. The requested competition authority may take
the appropriate remedial action, in the light of the legislation in force.

7.

Technical cooperation

7.1. The Parties shall be open to technical cooperation in order to enable them to take advantage of their respective
experience and to strengthen the implementation of their competition law and policies, according to the resources
available to them.

7.2. The following cooperation activities may be included in the programme to back up the implementation of the

Agreement:

(a)

training for officials, to enable them to gain practical experience;

(b) seminars, in particular for civil servants;

(c) studies of competition law and policies, with a view to supporting their development.

8. Management of implementing rules

Cooperation will be monitored and evaluated by the Internal Market Subcommittee established in the Agreement by
the Association Council Decision of 24 February 2003.

9. Amendment and update of the rules

The Association Council may amend these rules after consultation of the competition authorities.