ECN joint statement on applying competition law in the context of the crisis in Ukraine | Practical Law

ECN joint statement on applying competition law in the context of the crisis in Ukraine | Practical Law

On 21 March 2022, the European Commission announced that all competition authorities in the European Competition Network (ECN) (the Commission, the European Surveillance Authority, and the national competition authorities of the EU/EEA) have issued a joint statement on the application of competition law in the context of the crisis situation in Ukraine.

ECN joint statement on applying competition law in the context of the crisis in Ukraine

Practical Law UK Legal Update w-034-8940 (Approx. 3 pages)

ECN joint statement on applying competition law in the context of the crisis in Ukraine

by Practical Law Competition
Published on 21 Mar 2022 • European Union
On 21 March 2022, the European Commission announced that all competition authorities in the European Competition Network (ECN) (the Commission, the European Surveillance Authority, and the national competition authorities of the EU/EEA) have issued a joint statement on the application of competition law in the context of the crisis situation in Ukraine.
On 21 March 2022, the European Commission announced that the European Competition Network (ECN) (comprising the Commission, the European Surveillance Authority, and the national competition authorities of the EU/EEA) have issued a joint statement on the application of competition law in the context of the crisis situation in Ukraine (Commission Midday News MEX/22/1934).
The ECN notes, as it did in the ECN's joint statement on the application of competition law during the COVID-19 crisis, that different EU/EEA competition instruments have mechanisms to take into account, where appropriate and necessary, market and economic developments. The objective of ensuring a level playing field between companies remains relevant also in a period when companies and the economy as a whole suffer from crisis conditions.
However, it is recognised that the current extraordinary situation may trigger the need for companies to address severe disruptions caused by the impact in the internal market, for example by co-operating to ensure the purchase, supply and fair distribution of scarce products and inputs, or to mitigate severe economic consequences including those arising from compliance with sanctions imposed by the EU. In this context:
  • Co-operation measures to mitigate the effect of severe disruptions would likely either not amount to a restriction of competition under Article 101 of the TFEU or would generate efficiencies that would most likely outweigh any such restriction.
  • The ECN will not actively intervene against strictly necessary and temporary measures specifically targeted at avoiding the severe disruptions caused by the crisis and/or of sanctions in the internal market.
  • If companies, on the basis of their self-assessment, have doubts about the compatibility of such co-operation initiatives with EU/EEA competition law, they can reach out to the Commission, the EFTA Surveillance Authority or the national competition authority concerned any time for informal guidance.
However, at the same time, the joint statement notes that it is of utmost importance to ensure that essential products (for example energy, food, raw materials) remain available at competitive prices and that the current crisis is not used to undermine a competitive level playing field between companies. The ECN will therefore not hesitate to take action against companies taking advantage of the current situation by entering into cartels or abusing their dominant position.