dg competition european commission

In an effort to ensure that the DMA remains up to date and constitutes an effective and holistic regulatory response to the problems posed by gatekeepers, a regular review of the lists of CPSs as well as of the obligations is foreseen. 2.2.2.2) and hence will have to comply with the obligations. 59State Aid SA.59188 (2020/NN) Italy COVID-19 aid to Alitalia. An example of the methodology that has been used by the Commission to determine such more complex counterfactuals can be found in the Alitalia damages II59 and III60 or the Finnair61 cases. Companies are eligible when there is an outright ban on their activities but also when the imposed restrictions impose a de facto ban or undue restrictions, such as limits on attendance going beyond what would be dictated by generally applicable social distancing rules. The only other airline that has received more than EUR 250m aid under Sect. Instead, the set of credible bidders in current and future bidding opportunities should have been considered. IATA has estimated this increase to be USD 220 billion in 2020. However, for some obligations, the gatekeeper has the possibility to discuss with the Commission the measures it intends to take or has taken in order to ensure their effectiveness. Dann legen Sie doch einfach los! And this is the effort to contribute to the overall objectives of State aid: to ensure an appropriate balance between the need to provide support and avoid short and long term harm to the internal market and avoid distorting the level playing field between Member States (e.g. Technological progress is particularly fast-paced in the digital economy, and platform services thus evolve quickly over time. In the field of aggressive tax planning the General Court has annulled the Commission decision on Apple and the Commission had appealed this judgment to the Court of Justice. In the case of the DMA, the scope is determined, on the one hand, by the core platform services (CPSs)the list of digital services that are encompassed by the regulation (see Sect. The second case is Air France: France committed that Air France makes available to up to 18 daily slots at Orly airport (ORY). Between January 2020 and July 2021, the European Commission took decisions in eight (non-cartel) antitrust cases. The .gov means its official. Reduce switching costs for consumers and business users, Use of distribution channels by business users, Clauses with clear anticompetitive effects and unlikely to create efficiencies, No requirement to use gatekeeper ID service, Likely to have strong anticompetitive effects with limited efficiencies, FAND access to app stores for business users, Limit exploitation of market power in after-markets. Competition policy encourages companies to offer consumers goods and services on the most favourable terms. To address the gap in literature on practice-based evidence, this paper hence proposes measures of success for public health interventions by developing an evaluation framework for selection of best practices. and the use and cost of healthcare in EU Member States and beyond. First, the parties argued that due to the differentiated nature of the product markets under consideration, market shares were uninformative for the competitive assessment and one should focus exclusively on estimating and assessing the diversion ratios between the parties. The parties activities overlapped in particular in the markets for hydraulic components for mobile applications, such as harvesters, excavators and truck loaders. The Commission completed the fitness check of the rules under the State aid Modernisation package. Competition - European Commission However, the Commission has determined that the regulatory logic of the DMA should differ from the case-by-case approach of principles-based competition law enforcement as it considers that the competitive harm that is associated with the narrowly defined practices that are listed in the DMA will typically outweigh any potential efficiencies. In the following sections, we summarize some of the main developments in our work over the last year. WebWhat is competition policy? Publications Office of the European Union. Detailed statistics on the number of merger notifications and decisions are available at https://ec.europa.eu/competition/mergers/statistics.pdf. ORCID: http://orcid.org/0000-0002-5795-5735. A comparison with the major US airlines is interesting: While support towards EU airlines has been unprecedented, it appears that US airlines have received similar amounts of solvency support as a % of the companies 2019 revenues. The COVID 19 pandemic and the public health measures have meant a number of challenges for the EU and world economy. The presence of competitors with a local base was considered as well. Sie haben Spass am schreiben? Under this legal basis, Member States may compensate undertakings for damage that is directly caused by the COVID-19 outbreak. Wie whle ich das passende Medium? 43Communication from the Commission to the Council, (2021), One year since the outbreak of COVID-19: fiscal policy response. Incumbents might therefore be able to sustain market power for extended periods of time, which would lead to longer-term societal losses in terms of higher prices, less product variety for consumers, and less innovation. 2023 ScienceOpen All rights reserved. Strategic plan of the Directorate-General for Competition, setting out the department's vision for 2020-24 The manual is an internal working tool intended to give practical guidance to staff on how to conduct an antitrust investigation. If concerns exist but are addressed in a clearcut manner by remedies that have been proposed by the parties, the transaction can be cleared conditionally in phase I. Prevention and management of a large number of corporate insolvencies. IMF working paper No. The number of decisions has been abnormally high this year, also due to the significant number of COVID-19 related cases (see Sect. For example, Cros et al. A fundamental problem with these quantitative analyses was that most of them built on a proposed split of the orbital motors product space between end-use applications where some orbital motor models purportedly faced competition from other technologies and end-use applications where orbital motor models did not. WebDirectorate-general Connect Communications Networks, Content and Technology Connect develops and implements policies to make Europe fit for the digital age. and transmitted securely. Selection of best practices from the array of implemented programmes is one way of generating such practice-based evidence. As a result, different national legislations within the EU may lead to regulatory fragmentation and increased compliance costs for these players and the business users that rely on them. Recently though, the relative importance of State Aid work has been inching up. 75The congestion rate is calculated by dividing the number of slots allocated to all airlines at the airport in the relevant IATA season by the total capacity of the airport (in terms of slots) in the relevant IATA season. The Commission is concerned that the proposed transaction may reduce the number of network operators in Spain, thereby eliminating a significant competitive constraint and innovative rival in the Spanish retail markets for mobile telecommunications services, fixed internet services and multiple-play bundles, the EU executive said. a copy of this licence, visit The revised guidelines in the context of the greenhouse gas emission allowance trading scheme (ETS guidelines) were adopted in 2020 and the Commission has launched the public consultation on the Climate, Environmental and Energy Aid Guidelines (CEEAG) and important projects of common European interest (IPCEI) guidelines. As a result of these market characteristics, large digital providers have emerged as gatekeepers that serve as gateways for their business users and consumers.29 These gatekeepers exercise control over whole platform ecosystems that are all but impossible to contest by existing or new market operatorsirrespective of how innovative and efficient they may be. Annual EEA turnover of EUR 6.5bn in the last three financial years, or an average market capitalisation (or equivalent fair market value) of EUR 65bn in the last financial year, and provision of at least one CPS in at least 3 Member States; 45 million monthly active end-users and 10,000 yearly active business users established in the European Union in the last financial year; and. Joo Vareda, Email: ue.aporue.ce@ADERAV.oaoJ. In addition, the several TF amendments and prolongations show that the Commission monitors the economic developments to ensure that support is not withdrawn too early and should focus more on supporting the recovery and helping build the twin transitions. Insolvency Prospects Among Small and Medium Enterprises in Advanced Economies: Assessment and Policy Options. If the remedy taker is a long-haul carrier, the 18 slots per day would enable it to base a higher number of aircraft. IMF Staff Discussion Notes No. WebThe Directorate General for Competition at the European Commission enforces competition law in the areas of antitrust, merger control, and State aid. de Montjoye, and H. Schweitzer (2018), Digital policy for the digital era (available at: https://ec.europa.eu/competition/publications/reports/kd0419345enn.pdf). Sticking to the 2019 counterfactual would have de facto discriminated against undertakings that expended efforts to adapt to the new conditions and it would have exceeded the scope of Article 107(2)(b). 80M.9097 Boeing/Embraer (withdrawn 8 May 2020); M.9547 Johnson & Johnson/Tachosil (withdrawn 8 April 2020); M.9162 Fincantieri/Chantiers de lAtlantique (withdrawn 27 January 2021); M.9489 Air Canada/Transat (withdrawn 2 April 2021). The Health Policy Commission (HPC) issued its report, Cracking Open the Black Box of PBMs, at its meeting on June 5, 2019. Inclusion in an NLM database does not imply endorsement of, or agreement with, Ihre Dienstleistung! Warum sollten Marketing- und Werbeleistungen nicht auch online abrufbar sein wie bei einem Shop? Finally, the DMAs enforcement framework allows for sanctions, which range from fines and periodic penalties to structural interventions (see Sect. In terms of the impact on jobs, the combination of State aid and a number of job retention measures has limited the increase in unemployment (around 1% point from pre-pandemic levels) which has been significantly smaller than the drop in GDP. risk factors by promoting implementation and scale up of evidence-based effective The hydraulic component markets of the case under investigation did not exhibit this winner-take-all characteristic. interventions in the areas of health promotion, disease prevention and management They require that gatekeepers: (1) allow business users to offer the same products outside CPSs at prices/conditions that differ from those on the gatekeepers intermediation service(s); and (2) allow business users to promote offers to users that are acquired via a gatekeepers CPS, and conclude contracts with them, outside the gatekeepers CPS. From a State aid perspective, this risk of zombification has been a main concern to find the right balance between the benefits and risks to the internal market and a level playing field. 2.2.2.3). All citizens and organisations European and otherwise were invited to contribute to these consultations. In the majority of cases, this follows a simplified procedure. list. 39The Temporary Framework and all its amendments are available at https://ec.europa.eu/competition-policy/state-aid/coronavirus/temporary-framework_en. Departments and executive agencies - European Commission DisplayCustomHeader. 20Case AT.40099 Google Android, Commission Decision of 18 July 2018, recital 464. Accessibility Supplementary Information The online version contains supplementary material available at 10.1186/s12889-021-11116-w. Evidence-based public health has commonly relied on findings from empirical studies, or research-based evidence. HHS Vulnerability Disclosure, Help In particular, the Court found that the strict conditions for finding a refusal to supply set out in Bronner do not apply to the finding of an abuse in cases where access has been granted but the terms of access are in question.9. The companies can ask for a closed hearing to defend their case before the EU enforcer decides on the deal by Sept. 4. This may constrain the post-pandemic recovery by tapping resources and crowding out more productive firms. Most of those decisions concluded that the actions were compatible with the Commissions criteria for justifiable actions or did not actually involve aid.36, During this period, the impact of the COVID-19 pandemic has been very significant. This article presents the rationale and the process, ranging from best practice assessment However, the flip side of this success could be that the support measures have kept alive companies with negative equity or huge debt to equity ratio with a negative effect on long term productivity.50 For example, a paper published in the Financial Stability Review of the ECB51 is concerned that policy measures that are aimed at supporting companies through the COVID pandemic may have supported not only otherwise viable firms but also structurally unprofitable firms. 48However, the Commission also found a correlation between the State aid expenditure (as a % of GDP) and the loss in GDP which is an indication that aid has also been proportionate to needs at a macro level across Member States. 38See also https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1982. WebKey initiatives Competition case search Publications on EU competition policy European Competition Network (ECN) Contact DG Competition for antitrust, cartels and general Elenev et al. Copyright NoticeFeedbackContactTermsPrivacy Policy, ScienceOpen, Inc.infoo83ooc@o83onsscienceopen.com, 155 Middlesex TurnpikeBurlington, MA 01803USA, Phone: +1 781-222-5200Fax: +1 781-272-0577. By contrast, some authors point to the negative effects of the bailouts, such as increased moral hazard and excessive risk-taking and the high cost of the bailouts when compared to the corporate income tax payments of the bailout firms (Meier and Smith (2021)).46 That paper also observes that lobbying expenditures positively predict the bailout likelihood and amount. Even so, the Court used its discretion regarding the setting of fines by reducing the amount of the fine imposed on LG from 27.8 million to 20.1 million. To ensure effective compliance with the provisions of the DMA, the Commission can impose fines and periodic penalties or take the necessary measures to restore compliance following a non-compliance decision. The new COMP Cases, is available since 19 Finally Sect. Federal government websites often end in .gov or .mil. Disc Golf Tournament Schedule & Results for June 2023 The case concerned the acquisition by Danfoss A/S, headquartered in Denmark of the hydraulics business division of the multinational Eaton Group, Eaton Hydraulics, headquartered in Ireland.83 Both Danfoss and Eaton (the parties) were at the time leading manufacturers of hydraulic components globally and the merger would have removed one of the main competitors in the market. 8600 Rockville Pike The actual scenario is easily observableat least ex post. Furthermore, at least in terms of economics, it is very unlikely that two firms with high combined market share in a highly concentrated oligopolistic market are not close competitors. These included various price comparisons across motors of different technologies, an analysis of product characteristics of various motors as well as a set of price and margin regressions. 16The New Competition Tool, which would expand the Commissions enforcement powers, was later merged with one of the components of the DSA and was the origin of the DMA. It differs from the geographic market definition under the point of origin/point of destination city-pair approachwhere every combination of an airport or city of origin to an airport or city of destination is defined as a distinct market which is commonly used for merger review or antitrust and primarily relies on substitutability from the perspective of passengers. Dimitrios Magos, Email: ue.aporue.ce@SOGAM.soirtimiD. Before The COVID pandemic has led to unprecedented decreases in GDP. We were also involved in a number of significant cases such as Air-France-KLM (capitalization); TUI; Italian recapitalisation scheme; and Alitalia (damages), as well as in many other cases and schemes analysing proportionality needs andthe appropriate remuneration, as well as governance conditions. Italy (6.0%), Greece (4.39%), Malta (3.9%), Hungary (3.7%), Portugal (3.6%), Poland (3.6%) and Cyprus (3.5%).40, The aid approved may take very different forms. die Anworten! 62When it was not possible to establish a reliable set of routes, the Commission examined routes that were not affected by restrictions in previous months. sharing sensitive information, make sure youre on a federal Executive Vice-President Vestager; Directorate-General for Competition; Chief Competition However, these companies could still receive aid in the form of damage compensation under Article 107(2)(b) TFEU or under the standard Rescue and Restructuring guidelines. In all these instances winning or losing a key contract makes all the difference between serving a significant (or the whole) part of a market or not supplying at all. Amidst the growing number of infections and deaths, there has been an emphasis of patients with non-communicable diseases as they are particularly susceptible to the virus. > Subscribe to Competition weekly e-news. After Competition - European Commission The Commission identified which of the specific unfair practices require ex ante regulatory intervention, following several principles: (a) there should be sufficient experience with the harmful effects of the identified unfair practices; (b) such experience should point to the potentially egregious nature of the unfair practices in question, which would justify imposing clearly identified obligations that are related to them; (c) to the extent possible, these obligations should be directly applicable in order to guarantee the timeliness of the effects of the DMA; and (d) the unfair practices should be identified in a clear and unambiguous manner to provide the necessary legal certainty for gatekeepers who would need to comply with them, as well as for business users or consumers that may avail themselves of the choices that are provided for them. The DG Competition employs around 850 Corporate liquidity and solvency in Europe during COVID-10: the role of policies. diseases. (Reporting by Tassilo Hummel; editing by Bart Meijer and Susan Fenton). Can the Covid bailouts save the economy? With regard to the former, the DMA obliges gatekeepers to: (1) ensure fair and non-discriminatory conditions of access to app stores for business users; and (2) not treat more favourably in ranking gatekeeper services and products. In addition, as part of the EU response to the crisis and its evolution, the Recovery and Resilience Facility was established to help Member States in their recovery phase. Consequently, the status of dominance and the status of gatekeeper are logically distinct, which justifies the introduction of a new regulatory alternative. It encourages efficiency and innovation and reduces prices. In the US, the Airline Payroll Support Program included USD 32billion of support. Hier finden Sie Tipps und Tricks - However, as these estimated shares were based on numerous unverifiable assumptions, the Commission carried out a market reconstruction exercise by collecting sales data directly from the parties competitors. die fachspezifisch Ihr know-how zum Thema Multi-Media online zur Verfgung stellen mchten. In any event, even taken at face value, these results still only supported the finding of very marginal substitutability between orbital motors and other technologies. (available at SSRN: https://ssrn.com/abstract=3668289). 42Robins, N., Puglisi, L., & Ling, Y. Even the title of the report indicates In parallel to the numerous cases and policy initiatives related to the Covid crisis, there has also been significant work on State aid guidelines. Why is competition policy important for consumers? 68State Aid SA.59913FranceCOVID-19 Recapitalisation of Air France and the Air France KLM Holding. A third concern has been the zombification of the economy. BRUSSELS (Reuters) -Orange and MasMovils planned merger of their Spanish operations may reduce competition and push up prices, EU antitrust regulators warned on Tuesday, indicating the telecoms operators may need to offer significant remedies to get the deal approved. To facilitate this work the Commission has published a number of templates.37 In May 2021, the Commission also proposed a new Regulation to address distortions that are caused by foreign subsidies in the internal market.38. (2021) Corporate zombification: post-pandemic risks in the euro area, Financial Stability Review. It has a significant impact on the internal market; It operates a CPS that serves as an important gateway for business users to reach end-users; and. As a library, NLM provides access to scientific literature. credit line to the data. Analyses by members of the CET included, for instance, merger simulations, bidding analyses, price pressure analyses, quantitative market delineation, as well as conceptual contributions to the construction and testing of sound theories of harm. Online haben Sie berall die Basis Since its adoption on 19th March 20,202 the TF has been amended five times. WebDG Competition's manual of procedures for the application of Articles 101 and 102 TFEU The manual is an internal working tool intended to give practical guidance to staff on how However, several large airlinessuch as IAG, Ryanair, and Wizz Airhave not received any solvency support (or only a minimal support).73, Amount of recapitalisation aid to large EU airlines, and as a % of 2019 revenuesa, aThese numbers refer to approved aid not all of which has yet been effectively disbursed, bThis includes both recapitalisation support under 3.11 TF (Article 107(3)(b)) and damage compensation under 107(2)(b) in the form of hybrid loan. Welche Multi-Media-Gert fr The period 20202021 was further characterized by intensive activity across numerous antitrust policy fields. Bewerben Sie sich bei uns als freier Redakteur - als redax-networker - fr das Thema Multi-Media! 12See https://ec.europa.eu/competition-policy/sectors/motor-vehicles-draft-page/review-motor-vehicle-block-exemption-regulation_en. Shop-Artikel an!! The note advocates for quasi equity injections to address rising insolvency risks, conditional on adequate fiscal space, and an effective set of insolvency and debt restructuring tools. Between January 2020 and August 2021, 641 merger investigations were concluded at DG Competition. Orange and MasMovil compete with two other mobile network operators in Spain, Telefonica and Vodafone. 45Communication from the Commission to the Council, (2021), One year since the outbreak of COVID-19: fiscal policy response. To estimate market power, the Commission assessed the slot holdings74 in each relevant geographic market during the last two pre-crisis IATA seasons and the Commission analysed the average congestion rate75 during the operating and peak hours. Management plan 2022 Competition - European Commission The Commissions press release is available at https://ec.europa.eu/commission/presscorner/detail/en/IP_21_1243. This is generally the rule for merger and has become much more common in antitrust and State aid, especially on the most relevant and complex cases. Bethesda, MD 20894, Web Policies In Baltic Rail, the General Court confirmed the Commissions finding that LG, the national railway company of Lithuania, had abused its dominant position by dismantling a rail track that was used by a Latvian competitor to enter the market and serve a large customer that had recently switched away from LG. By mid-August 2021 more than 50% of the aid approved has been notified by Germany, followed by Italy and France (around 15% each). 3. Directorate-Generals (DGs) of the European Commission Last, we provide an overview of the main developments from a State aid perspective in one of the most affected sectors, airlines. One important leg of this reaction is the State aid responsewith hundreds of positive decisionsand the setting out of the TF.39 From an economic perspective, economic and financial analyses have been a key component of the State aid response to these challenges: by contributing to the construction of the overall architecture and rationale of the TF as well as in the implementation and the assessment of actual cases and schemes.
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