1 Bundeswettbewerbsbehörde GD Dr. Theodor Thanner St. Gallen ICF, 24 April 2009 B UNDES W ETTBEWERBS B EHÖRDE Federal Competition Authority of Austria

2 Regulation 1/ years on - „Form is the sworn enemy of caprice, the twin sister of liberty. […]“ Jhering, Geist des römischen Rechts auf den verschiedenen Stufen seiner Entwicklung, 2. Theil, 2. Abteilung, 3. Auflage 1875 U 470. B UNDES W ETTBEWERBS B EHÖRDE

3 An Expedition 27 mountaineers with EC-equipment climbing a mountain B UNDES W ETTBEWERBS B EHÖRDE

4 Edward Theodore Compton, 1918 Großglockner, 3798m

5 ECN cooperation exchange of information and evidence best placed authority new investigative powers B UNDES W ETTBEWERBS B EHÖRDE

6 Cooperation principle subsidiarity communication transparency confidentiality

7 Subsidiarity I Treaties of the European Union Rome, principle of subsidiarity Treaty of Maastricht, official introduction of the principle to increase transparency and openness in the decision making process of the Community Treaty of Amsterdam, detailed criteria for the application of the principle by the Community institutions participating in the legislative procedure B UNDES W ETTBEWERBS B EHÖRDE

8 Subsidiarity II Constitution for Europe, 2004 (failed 2005) - new definition of the principle - local and regional dimension - mechanisms for implementation and monitoring Lisbon Treaty, national parliaments with regard to the principle monitoring has been strengthened - infringements of the principle MS‘ governments can take case to the European Court of Justice B UNDES W ETTBEWERBS B EHÖRDE

9 Principle of Subsidiarity Art 5 EC-Treaty* –it is a guiding principle for defining the boundary between MS and EU –exclusive competence of EC – subsidiarity does not apply –shared competence of MS and EC – decentralisation –EC only if objectives cannot be achieved sufficiently by MS and if they can be better achieved by the EC *Art 5 Para 2 EC Treaty and protocol nr 30

10 Reg 1/2003 quo vadis? Case Study I „Best placed authority“ -EC - MS: partnership marked by division of labour -priority setting of Competition Authorities -petrol markets no priority of the EC – shifted to national level -NCA took responsibility and investigated B UNDES W ETTBEWERBS B EHÖRDE

11 Reg 1/2003 quo vadis? Case Study I -National investigations: good results -Results: prices follow closely (contractually) the prices of Platts* *Platts: business unit of the McGraw-Hill Companies, a global provider of information regarding energy and resources existent since nearly a century B UNDES W ETTBEWERBS B EHÖRDE

12 Reg 1/2003 quo vadis? Case Study I -Nobody knows but we would like to understand -FCA of Austria (A) cannot send formal information requests to a company with headquarters in London -FCA of A sent letter asking for basic information -What if they are still on Easter holiday? B UNDES W ETTBEWERBS B EHÖRDE

13 Reg 1/2003 quo vadis? Case Study I -We have to think beyond! -European retail- and wholesale prices are linked to these notations >>> notations have tremendous impact on price developments -More transparency >>>more rational actions -Isn‘t there a need for regulation? B UNDES W ETTBEWERBS B EHÖRDE

14 Reg 1/2003 quo vadis? Case Study II The role of the judges -Art 9 Commitment Decision implemented in Austrian Law (like in many other national legislations) -2 cases so far closed by Commitment Decision -but: task work for the FCA to follow a formal proceeding before the Cartel Court B UNDES W ETTBEWERBS B EHÖRDE

15 Reg 1/2003 quo vadis? Case Study II How could judges be more integrated in the ECN? Do we have enough legal certainty? Do the parties have enough legal protection? B UNDES W ETTBEWERBS B EHÖRDE

16 Legal Protection -transparency vs business secrets -confidentiality between NCA vs confidentiality between law firms -communication B UNDES W ETTBEWERBS B EHÖRDE

17 Outlook cooperation >> partnership exchange of information and evidence >> transparency and communication conflict of competence>> best placed authority new investigative powers>>effectiveness B UNDES W ETTBEWERBS B EHÖRDE

18 Conclusion Not to bend the rules but to stand the rules. B UNDES W ETTBEWERBS B EHÖRDE

19 BUNDESWETTBEWERBSBEHÖRDE Thank you for your attention!