are key enablers of digital trade. In simple terms, online platforms (benefitting from network effects, extreme returns to scale and data advantages etc.) CategoriesNews, Online ConferenceTagsdigital services act, new competition tool, Technological Change and Society research group cluster. A public consultation has been launched to gather stakeholder views on the introduction of the NCT. While DG COMP has to examine all notified mergers (see paragraph 16), it enjoys discretion in deciding whether to investigate alleged infringements of antitrust rules. Resources. the ˝rm level and comes from the records on the bene˝ciaries of indirect cost compensation provided by DG COMP and from the Orbis Bureau Van Dijk database. ", © Copyright 2006 - 2021 Law Business Research. Options 3 and 4 would cover all identified structural competition problems, including scenarios involving dominant companies, but also structural competition problems that are not necessarily related to dominance (e.g. The Commission, however, is looking towards the future and is acutely aware that more traditional sectors of the economy are inevitably going to adopt more digitally enabled outlets to connect with customers. Become your target audience’s go-to resource for today’s hottest topics. The NCT aims at ‘speeding up’ the competition policy enforcement, which is currently perceived as ‘too slow’ taking into consideration rapid industry developments, especially in digital markets. Dancers Inc. We've Moved! On the possible ex … Following the outcome of the consultation (in addition to other evidence and data collection exercises), the Commission has signalled its intention to publish a legislative proposal regarding the NCT in Q4 of 2020. Each option outlines varying iterations of both the requirements and scope for application of the NCT. Keep a step ahead of your key competitors and benchmark against them. Such scenarios cannot be addressed under the current competition rules but could be tackled through a new market investigation tool … Competition distortion is measured in terms of the effects of the intervention on per worker measures of turnover and value of total assets. The two Inception Impact Assessments the DMA Proposal is based on attribute the lead role to DG CNECT and DG GROW, with regard to the ex-ante regulatory instrument, and to DG COMP, regarding the market investigation mechanism (formerly presented as the ‘New Competition Tool’). The European Commission is currently consulting on a proposal for a new power (the NCT) that would allow them to impose behavioural and structural remedies in markets where they have identified certain competition issues. The European Commission (the Commission) launched its initiative for a “ New Competition Tool ” (NCT) on 2 June 2020. Ex Ante-Ante Intervention (or, the “New Competition Tool (‘NCT’)”) The third pillar of the new antitrust revolution is a new market investigation tool to address “certain structural risks for competition” with a particular emphasis on markets with network, scale, and data effects (e.g. Much of the Commission’s focus in recent years has been on the unique competition issues borne out by the digital economy. Businesses are increasingly more dependent on them to reach their customers resulting in those platforms wielding market power over those businesses (whose success depends on access to markets and consumers). Please contact [email protected]. While the Commission accepts that these characteristics have most recently been identified in digital or digitally-enabled markets, it does not rule out the application of the NCT (under options 2 and 4) in other sectors (highlighting that the entire economy is increasingly digitised). The event thus aims at stimulating the public discussion concerning the DMA proposal, which will be debated by the Council and the European Parliament in the course of 2021. In this context, it may come as a surprise to businesses in more traditional sectors that the most wide-ranging option currently proposed would give the Commission the power to intervene in any market (where it was of the view that competition issues exist preventing that market from functioning properly), and to impose behavioural, and even structural remedies. White Paper on Foreign Subsidies - raising a 'red flag' in Brussels? In particular, the EU executive body would be able to impose … Subscribe now In our opinion, given the DMA’s closeness to competition law enforcement, DG COMP should definitely have a prominent … Power up your legal research with modern workflow tools, AI conceptual search and premium content sets that leverage Lexology's archive of 900,000+ articles contributed by the world's leading law firms. The Commission has detailed four possible options regarding the form the new power could take, each differing in threshold for application and scope. If used properly, AliExpress data can be your best product research tool. July 2 2020 2 Jul 2020 Webinar Reform of the VBER : What changes to expect ? This encourages enterprise and efficiency, creates a wider choice for consumers and helps reduce prices … From an Irish perspective, the Irish Department of Business, Enterprise and Innovation is also seeking the views of parties interested in the proposed NCT by 24 July 2020 on the Commission’s proposals. Q&A guide to the Brexit Trade & Cooperation Agreement, Asset Management & Investment Funds: EU & International Developments - Mar 2021, Recent developments in Professional Indemnity (PI) insurance in the Irish construction industry, EDPB responds to questions on processing health data, Asset Management & Investment Funds: Irish Practice Developments - Mar 2021. 2. 1949 Bulletin. The Digital Services Act consultation - new … Place Madou 1 / Madouplein 1 • 1210 • (postal office Box: 1049) • Bruxelles / Brussel • Belgium Businesses operating on (traditionally) non-digital markets may be surprised to learn that the reach of whatever NCT is adopted will have (at least) the potential to disrupt their industry. See documents. In October 2019, it was reported in the press that DG COMP had opened a competition law investigation against Apple in relation to its Apple Pay service. When we ran our meme contest, Isabelle de Silva (President of the French Competition Authority) suggested that we should again use the best memes … Such businesses may not have been paying too much attention the Commission’s online travails, and understandably so. According to the Commission, digital markets display typical characteristics that can result in outcomes that are not competitive but that are beyond the reach of the current competition rules. Structural risks for competition, as the Commission sees them, relate to markets where early entrants (often online platforms) may have built up an entrenched position resulting in those market players possessing a “gatekeeper” role. The European Commission (the Commission) launched its initiative for a “New Competition Tool” (NCT) on 2 June 2020. DANCERS INC. Competitions & Conventions For a new Generation by a new Generation. A core aim of the NCT is to strengthen competition enforcement in all sectors and making sure that competition policy and rules are fit for the modern economy. Questions? Any new registrations, contact the office! 2272 | Conferences. Under this heading, the Commission also highlights an increased risk for tacit collusion (even in markets with numerous competitors), where market transparency is greater than ever due to the increasing prevalence of algorithm-based technological solutions. Email: See documents . The DG Comp’s own 2007 Single Market Review first identified economically important sectors, then examined indicators of market performance, such as the degree of competition and the sector’s openness to investment and innovation. Articles 53 - 60 of the EEA Agreement covers competition. In terms of social impacts, not surprisingly, the Commission identifies option 3 – the least restrictive and most wide-ranging option – as likely to have the biggest impact in terms of safeguarding consumer welfare in the long term. Commission, Parliament and Council), National Competition Authorities, as well as industry representatives to discuss the pros and cons of the Digital Markets Act (DMA) proposal. UK FCA. If you would like to learn how Lexology can drive your content marketing strategy forward, please email [email protected]. In particular, 4 expert reports have recently been published by well-known academics on behalf of DG Competition. Competition. The Working Group on Competition Policy is responsible for the legislation contained in Annex XIV and Protocols 21-25 of the EEA Agreement. During the online conference, the authors of the reports will present their studies and engage in a debate with practitioners. In June 2017 the OECD Competition Committee held a roundtable on the topic as a part of the wider work stream on competition in the digital economy, in order to discuss some of the challenges raised by algorithms. The Commission notes that part of the rationale of the impact assessment for a possible New Competition Tool, which it launched on 2 June 2020, 46 is to address structural risks for competition that may require early intervention to prevent the creation of powerful market players with an entrenched market and/or gatekeeper position. This sector screen showed that the Food and Beverages market was performing poorly. Perhaps the businesses that will find the Commission’s new NCT initiative the least surprising are those who’s names immediately spring to mind when phrases like “the digital economy” and “Big Tech” are used. Industry4Europe is creating a range of tools and resources to help promote its campaign for an ambitious EU industrial strategy. These options are outlined below. This benefits consumers, businesses and the European economy as a whole. 2020 (Lead DG: DG CNECT). We have often claimed that the competition community is special, and that the people in it are special too (mostly in a good way ;-)). New Zealand. September 29 2020 29 Sep 2020 Webinar EU New Competition Tool : A paradigm shift in competition rules for the digital economy and beyond ? However, the Commission also makes clear its view that these characteristics can also exist in non-digital markets, and that the increasing digitalisation of the economy will inevitably result in the differences between digital and non-digital markets becoming increasingly blurred. The Commission’s public stakeholder consultation, which aims to gather views from relevant stakeholders on the perceived impact of the options proposed, is now open with the deadline for responses being 8 September 2020. However, given that the new competition tool allows the imposition of remedies without a finding of illegality, the Commission might, in fact, resort to the new competition tool rather frequently, and perhaps to the detriment of existing, more tightly constrained powers. In a recent interview with Bloomberg, Commissioner Vestager is reported to have indicated that DG Comp’s review of Google’s plan to buy Fitbit Inc. for $2.1 billion will not involve privacy regulators. Two competition … As DG COMP usually receives more information on competition problems than it can actually investigate with the resources it has available, it has to set priorities. Options 1 and 3 would be applicable across all markets, similar to how Articles 101 and 102 TFEU are currently applied. Norway . Two important aspects common to all four options (regardless of which option is adopted) are: (a) the application of the NCT will not require any prior finding of an infringement (for example, pursuant to Article 102 TFEU); and (b) the application of the NCT would not result in the imposition of fines (meaning no follow-on damages claims could be brought), nor any finding of an infringement of the EU competition rules. Romania . However, the market is still not achieving competitive outcomes due to, for example, high concentration, high entry barriers, consumer lock-in, lack of access to data or data accumulation. menu. The Commission envisages clarifying the scope of competition rules in the TFEU for collective initiatives that promote sustainability in food supply chain. According to the Commission, options 1 and 2 would be more challenging to apply effectively as they would necessarily involve an investigation and the application of the legal test for a finding of dominance. Why a new competition tool? The European Commission ("EC") just announced two new studies in the mobile payments sector. If DG COMP plays by the bloc's HR rules, several bosses will have to pack their bags and leave the department's Madou Tower headquarters next year. In terms of the likely impact on fundamental rights, the Commission acknowledges that – as all policy options will have an impact on the way in which companies can act on any given market – account will have to be taken the rights of defence and the right to judicial review of companies subject to intervention under the NCT. Regardless of whether your business traditionally operates online or not, the NCT has the potential to reshape your industry and its development should be closely monitored. Sign up for a free trial find marketing opportunities using our tools for: Content and topic analysis (New) Competitive … The proposal will later be debated within the Council and the European Parliament in the course of 2021. We don’t have enough data to display all the information typically shown here. The aim was to create a set of well-developed and effective competition rules, to help ensure that the European market functions properly and provide consumers with the benefits of a free market system. 19 avenue Jean Aicard 75011 Paris, France 106 West 32nd Street, Suite 144 New York, NY, 10001, USA 563 Chiswick High Road W4 3AY London, UK