Explore the European Commission’s antitrust enforcement framework, evaluation of competition regulations, highlighting successes, challenges, and future steps for modernization.
On 5th September 2024, the European Commission (“Commission”) published a staff working document (“SWD”) summarising the main findings following an evaluation carried out into the workings of Regulation 1/2003 and Regulation 773/2004 (together the “Regulations”). The evaluation sought to reflect on the results achieved by the Regulations in the past 20 years whilst understand whether it remains relevant in today’s globalised and digitalised environment.
Background
The Regulations outline the procedure governing the implementation of EU competition rules under Articles 101 and 102 of the Treaty of the Functioning of the European Union (“EU Competition Rules”). The Regulations were implemented following the EU’s enlargement in 2004, with the focus of ensuring the effective and uniform application of the EU Competition Rules.
As a result of the Regulations, the Commission has in the past 20 years adopted 225 enforcement decisions, fines of over €42 billion under Regulation 1/2003 and it is estimated that the total customer savings from all cartel and antitrust interventions by the Commission amount to between €50 to €87 billion.
Main Findings of the Evaluation
The SWD notes that the Regulations have overall performed positively and have achieved their objective of effective, efficient and uniform application of EU Competition Rules. Businesses have also welcomed the cost savings achieved through the elimination of the old system of notification of agreements to the Commission for companies to benefit from the exemption under Article 101(3) TFEU. The Regulations have also contributed to a stronger cooperation framework between the Commission and national competition authorities, allowing them to work better together and appropriately allocate work between themselves.
The SWD also notes that there is room for improvement in the Regulations. Notably, the SWD underscores the need for the Commission’s investigatory tools under the Regulations to be enhanced in light of the increased complexity of antitrust investigations, specifically the rules governing requests for information, inspections and the power to take statements. The SWD highlights that some of the Commission’s decision-making powers must also be rethought in view of increased digitalisation and globalisation.
Next Steps
The Commission will now assess the findings of the SWD with a view of deciding whether a revision of the Regulations is merited.
The SWD can be accessed here.
