EU Revises Antitrust Guidelines with New Exceptions for Sustainable Firms
Overview of the Revised EU Antitrust Guidelines
By Foo Yun Chee
Introduction to the Changes
BRUSSELS, Sept 3 (Reuters) - Companies at risk of penalties for being anti-competitive may be able to justify their dominance if their business practices are sustainable, EU regulators said on Thursday in revised guidelines.
Defining Dominance and Acceptable Practices
The Commission, which acts as the European Union's competition enforcer, considers a company to be dominant if it has a more than 40% share of the market.
Acceptable Use of Dominance
Using that dominance to squeeze rivals could be acceptable, the Commission said on Thursday, if it ensures reduced use of raw materials, produces less pollution or leads to increased use of recyclable products and makes supply chains more resilient.
Consumer Benefits Considered
Enabling cost-savings for consumers would also be taken into consideration, according to the revised EU antitrust guidelines.
Context and Application of Article 102
They relate to Article 102, one of the European Commission's most powerful tools that has resulted in hefty fines for Apple, Google and Microsoft in recent years after EU authorities found they had used their market power to thwart rivals.
Guidance for Companies
The revised guidelines also aim to help companies assess whether they are dominant and, if so, in which markets.
Criticism and Concerns from Academics
Academics and other analysts were critical of the new approach.
Open Letter from Experts
A group of 28 leading academics and economists including former senior Commission economists in a joint open letter to Commission President Ursula von der Leyen and EU antitrust chief Teresa Ribera said the rules could be exploited to justify unfair dominance.
Summary of the Critique
The guidelines "introduce presumptions and analytical shortcuts that do not distinguish appropriately between anti-competitive conduct and pro-competitive conduct that reflects business acumen, superior skill, or efficiency by dominant firms," the letter said.
(Reporting by Foo Yun Chee; editing by Barbara Lewis)
