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Enforcement of European Competition Law by the NCAs and More Particularly by the ACM

National competition authorities (NCAs) are responsible for the national enforcement of (both national and European) competition law. Regulation 1/20031 empowered NCAs (and also national courts) to apply all aspects of European competition law, reducing some of the European Commission’s burden in enforcing European competition law. Several NCAs combine competition law enforcement with other functions. In the Netherlands, the ACM (Authority for Consumers & Markets) has combined sector-based regulatory functions and competition supervision since its merger with the consumer authority and the postal and telecoms regulator.2

All European Union Member States’ NCAs are obliged to enforce the same substantive rules as laid down in articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU). However, the NCAs have a significant amount of discretion and flexibility to design their own enforcement regimes.3 The only requirement that Regulation 1/2003 imposes on the NCAs is that they comply with the substantive terms of Regulation 1/2003. Thus, competition law enforcement in the European Union is largely decentralized. In order to evaluate this system and to determine whether there is room for improvement, the European Commission adopted the Communication on Ten Years of Regulation 1/2003 (the Communication). The European Commission concluded that despite that absence of explicit requirements in EU law for NCAs to apply uniform procedures when applying EU competition rules, there has been voluntary convergence of procedures across the EU jurisdictions. However, the degree of procedural convergence on procedures differs, and the NCAs’ procedures often diverge, even as to some fundamental powers.4

The ACM chairman, Mr. Chris Fonteijn, in his Nov. 25, 2014 speech at the association for competition law, also touched upon this conclusion expressed in the Communication. Specifically, in his speech, the ACM chairman underlined that vertical restraints pose a high risk of harm to consumers when (i) such restraints are instrumentally used to facilitate collusion between producers, or (ii) when such restraints are used to exercise market power in a field where interbrand competition is already limited. However, the mere awareness of these high-risk situations has not, to date, triggered the ACM to apply a strict approach to vertical restraints, although the Austrian, French, German and British NCAs have adopted such an approach. The ACM’s approach thus is not in harmony with that of several other NCAs in comparable jurisdictions.

The ACM now seeks to ensure that undertakings and consumers benefit from obvious efficiencies related to vertical agreements, but that they do not suffer from anticompetitive effects. Thus, it prioritizes those situations where there is a high risk of consumer harm.5 In so doing the ACM seeks to provide consumers, companies, and their advisors transparency and predictability. To this end, the ACM will cooperate with other NCAs and the European Commission in order to reduce legal uncertainty.

____________________

1  Council Regulation (EC) No 1/2003 of  Dec. 16, 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty (OJ 2003 L1, 4.1.2003).  
2 April 1, 2013.  
3 See Communication from the Commission to the European Parliament and the Council, ‘Ten years of Antitrust Enforcement under Regulation 1/2003: Achievements and Future Perspectives’, COM (2014) 453, at 4. See also Commission White Paper, ‘Towards more effective EUR merger control’ of July 9, 2014, COM (2014) 449 final.  
4 Communication from the Commission to the European Parliament and the Council, ‘Ten years of Antitrust Enforcement under Regulation 1/2003: Achievements and Future Perspectives’, COM (2014) 453, at 18  
5 Speech, Association of Competition law meeting Nov. 25, 2014: ACM’s strategy regarding enforcement of vertical restraints.  

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©2020 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume V, Number 53
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TRENDING LEGAL ANALYSIS

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About this Author

Teresa Charatjan, Greenberg Traurig Law Firm, Amsterdam, Corporate and European Law Litigation Attorney
Associate

Teresa Charatjan focuses her practice on national and European competition law, corporate law, and EU regulatory issues, as well as litigation and arbitration in relation to these matters.

Areas of Concentration:

  • Competition law and EU regulatory law
  • Corporate law
  • Litigation and arbitration

Professional & Community Involvement:

  • Member, Dutch Bar Association  
3120-301-7300
Hans Urlus, Greenberg Traurig Law Firm, Amsterdam, Corporate and Litigation Law Attorney
Shareholder

Hans Urlus coordinates inbound and outbound investments with respect to China and counsels international clients in all aspects of international trade, commercial agency, franchise and distribution, with a focus on EU and national competition law, EU regulatory issues, mergers and acquisitions. He is also involved in litigation and arbitration in relation to these matters. Hans has worked in the regulatory field, including numerous cases involving the introduction of various regulated products into the EU market, and heads the German desk of the firm's Amsterdam office...

3120-301-7324
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