'Complainants should get a better deal in their own jurisdiction ' – Harney

Business and individuals are set to benefit as a result of new arrangements for the application and enforcement of EU competition law announced by the Tánaiste and Minister for Enterprise, Trade & Employment, Mary Harney.

The new regulations provide for the implementation in Ireland of a new European Union Competition Regime which came into operation throughout the enlarged Community on 1 May.

Announcing the introduction of the new rules the Tánaiste said: "Irish Courts and the Competition Authority now have full powers to apply European Community Competition law. This means that businesses and individuals may take their complaints on competition involving trade between member states to the domestic courts and the national competition authority and this should result in a better deal for all ".

One of the key changes to be introduced will see national authorities – in Ireland’s case, the Competition Authority and the Courts - assume greater responsibility for the application and enforcement of the new EU competition rules

In particular, the new Community arrangements (introduced under Council Regulation No. 1/2003) include:

• The direct application of Articles 81 and 82 of the Treaty (thus ending the system of notification to the Commission for individual exemption of restrictive agreements and practices under Article 81(3); this system has been in operation since 1962),

• A new relationship between Community and national competition laws requiring parallel application of the two laws in cases affecting trade between Member States, and

• Increased enforcement cooperation between the European Commission and national authorities including national courts

The changes will affect both public and private enforcement of Community competition law as well the application of national competition law when trade between Member States is affected.

ENDS/ETE 1213

Notes for Editors

1. The statutory instruments made by the Tánaiste on 30 April 2004 came into force on 1 May 2004. They are as follows:

(a) European Communities (Implementation of the Rules on Competition laid down in Articles 81 and 82 of the Treaty) Regulations 2004 (S.I. No. 195 of 2004)

(b) Competition Act 2002 (Commencement) Order 2004 (S.I. No. 196 of 2004)

2. The main effect of S.I. No. 195 is to designate the national authorities who will be responsible for the implementation in the State of the public enforcement provisions of EU Council Regulation No. 1/2003. Under the Competition Act 2002 public enforcement of national and EU competition law is entrusted

- to the Competition Authority in regard to investigation and related activities

- and to the Courts in regard to determination of infringements and imposition of remedies and penalties (fines and imprisonment).

The new Regulations maintain this broad division of labour by allocating judicial and related functions to the Courts and executive and administrative functions to the Competition Authority.

3. Notable additional changes introduced under EU Council Regulation No. 1/2003 include:

• national competition authorities and national courts are required, when applying national competition law to cases which may affect trade between Member States, to also apply Community competition law and to give primacy to the latter in Article 81 matters

• the Regulation does not attempt to harmonise the various enforcement systems used by Member States

• new arrangements for cooperation between the Commission and national authorities (including Courts) are made including the giving of advance notice to the Commission of certain important decisions at national level (Article 11(4)) and extensive information sharing activities between national authorities and the Commission. A right of the Commission to take back a case from a national authority is retained.

• arrangements for coordinated enforcement activities involving authorities from more than one Member State

• right of Commission and national competition authority to intervene as amicus curiae in Court proceedings between private parties

• extended obligations of national competition authorities to assist Commission inspections and to carry out investigations on behalf of the Commission or other national competition authorities

• power of Competition Authority to withdraw the benefit of a Community block exemption Regulation

4. The effect of S.I. No. 196 is to bring into operation the provisions of Section 6(4)(c) of the Competition Act 2002 under which it shall be a good defence in proceedings under Article 81(1) of the Treaty to prove that the agreement, decision or concerted practice fulfils the conditions of Article 81(3) of the Treaty.

ENDS