Debate: Competition policy – annual report
Date: WEDNESDAY, 4 MAY 2022
Speaker: Margrethe Vestager
Language: EN

This annual debate is again taking place in the midst of a crisis. Just as we were starting to get back to normal life after the pandemic – or the pausing of the pandemic – we were faced with unprecedented aggression, with an unprecedented attack on our democratic values – values I think we took for granted. They are now being tested. Can we stand up for them? And can we mirror their brave countermeasures, as we see in Ukraine? I’m glad that our reaction was swift. The sanctions that we imposed are effective, and they are effective because of the size and the strength of our economy. The effects of sanctions and counter-sanctions can only be cushioned by a well-functioning and resilient single market. That is part of our defence. This is why competition policy and enforcement play a key role. In the current context of prices going up, it’s hitting purchasing power hard in many families, especially, of course, those who are most vulnerable when it comes to their budgets.  We need to make sure that markets remain competitive, to deliver affordable prices, and to make sure that no one takes an undue advantage. That work, of course, is never complete. There is no resting on any laurels when it comes to that. We must continue working to further strengthen the single market, to complete it, and to make sure that it’s working every day of the week. And we must make it future—oriented and ready for the green and digital transition.  The draft report also recognises that EU competition policy and its vigorous enforcement play a crucial and instrumental role in this endeavour. I hear the calls of the Parliament for an in-depth review of existing competition instruments, and we are acting on this call. Recent challenges show that, overall, our rules remain relevant, useful, enabling, on a day—to—day basis. They serve us well and they can be swiftly adapted if necessary. I think the COVID State aid temporary framework is a very good example of that ability to adapt. The framework has enabled Member States to provide necessary and proportional support to businesses hit by the crisis. At the same time, the fact that we had rules, that we assessed what was going on, helped us maintain the level playing field in the single market. So far, within the framework of the COVID temporary framework, the Commission has approved a total amount of State aid – a budget, so to speak, of State aid – of almost EUR 3.2 trillion. Based on a survey covering from mid-March 2020 to June 2021, the actual spending was not the budget; the actual spending was almost EUR 730 billion, but not in the size of trillions. I think that is really, really important to take note of because it also means that, while we had fears or concerns that we could have had a serious disturbance of the level playing field, that has actually not materialised because the survey results also show that no Member State has disproportionately outspent another.  Now we are actively considering the progressive phase-out of this temporary framework – something that the Parliament has called for, as was just mentioned by the rapporteur. The Commission was also quick to put in place a temporary crisis framework in the context of the Russian invasion of Ukraine. To make sure that our tools are fit for purpose, we have engaged in an unprecedented review of 20 competition rules and guidelines across the three instruments: antitrust, mergers and state control. The recently adopted climate, environmental protection and energy aid guidelines are key enablers of the green transition. Let me thank the Parliament for its input in the run—up to these guidelines.  Let’s not forget the casework. A recent example is the Council decision from last year, by which the Commission imposed heavy fines on a number of carmakers who colluded to slow down the deployment of technical development potential to reduce car pollution levels. And, last but not least, competition also supports the digital transition. It keeps the power of dominant companies in check, especially through antitrust rules that prohibit the abuse of dominance. We have continued vigorously enforcing competition rules. You will know the ongoing cases that we have: a Google case, a Facebook case, three Apple cases, two Amazon cases – all high priority. Last but not least, as Parliament has pointed out several times, investigations take time. But now the enforcement has also shaped the content of the Digital Markets Act, both on process and on substance. The Digital Markets Act could not have been delivered so fast without the experience that we have accumulated over so many antitrust cases. I think the DMA is proof that democracy works because, with the excellent work of Parliament, here we are with a strong political agreement on this landmark proposal. Last but not least, since we are in times of change, we have revised the State aid rules on important projects of common European interest. We can discuss that, of course, in greater detail. You know the many projects that we are about to approve. Tomorrow, we will start the trilogues on the regulation on distortive foreign subsidies.  I am really happy to see the speed at which Parliament has been working and the engagement. With that engagement, of course, I also look forward to this debate.