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

2. 2 Regulation 1/2003 - 5 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. 3 An Expedition 27 mountaineers with EC-equipment climbing a mountain B UNDES W ETTBEWERBS B EHÖRDE

4. 4 Edward Theodore Compton, 1918 Großglockner, 3798m

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

6. 6 Cooperation principle subsidiarity communication transparency confidentiality

7. 7 Subsidiarity I Treaties of the European Union Rome, 1957 - principle of subsidiarity Treaty of Maastricht, 1992 - official introduction of the principle to increase transparency and openness in the decision making process of the Community Treaty of Amsterdam, 1997 - detailed criteria for the application of the principle by the Community institutions participating in the legislative procedure B UNDES W ETTBEWERBS B EHÖRDE

8. 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, 2007 - 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. 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. 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. 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. 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. 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. 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. 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. 16 Legal Protection -transparency vs business secrets -confidentiality between NCA vs confidentiality between law firms -communication B UNDES W ETTBEWERBS B EHÖRDE

17. 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. 18 Conclusion Not to bend the rules but to stand the rules. B UNDES W ETTBEWERBS B EHÖRDE

19. 19 BUNDESWETTBEWERBSBEHÖRDE Thank you for your attention!