COVID-19: Commission launches dedicated website to provide advice on compatibility with competition law of cooperation initiatives | Practical Law

COVID-19: Commission launches dedicated website to provide advice on compatibility with competition law of cooperation initiatives | Practical Law

On 30 March 2020, the European Commission announced that it has launched a dedicated website to provide guidance where there is uncertainty about the compatibility with EU competition law of concrete cooperation initiatives with an EU dimension that need to be swiftly implemented to tackle the crisis resulting from the 2019 novel coronavirus disease outbreak (COVID-19).

COVID-19: Commission launches dedicated website to provide advice on compatibility with competition law of cooperation initiatives

Published on 30 Mar 2020European Union
On 30 March 2020, the European Commission announced that it has launched a dedicated website to provide guidance where there is uncertainty about the compatibility with EU competition law of concrete cooperation initiatives with an EU dimension that need to be swiftly implemented to tackle the crisis resulting from the 2019 novel coronavirus disease outbreak (COVID-19).
On 30 March 2020, the European Commission launched a dedicated website to provide guidance on the application of EU competition rules during the 2019 novel coronavirus disease outbreak (COVID-19) (Commission Daily News MEX/20/560).
The Commission acknowledges that cooperation among businesses might be crucial to ensure the supply and fair distribution of essential goods and services, as well as to mitigate as much as possible the negative economic and social consequences of this crisis. A ECN joint statement has been issued on the application of the antitrust rules by competition authorities during the current coronavirus crisis. Further, the Commission's existing guidelines can help companies assess the compatibility of their business arrangements with EU competition law.
However, for specific cooperation initiatives with an EU dimension, that need to be swiftly implemented effectively to tackle the coronavirus pandemic, and where there is still uncertainty about whether such initiatives are compatible with EU competition law, DG Competition is ready to provide guidance to companies, associations and their legal advisors. Therefore, the Commission has set up a dedicated mailbox [email protected] that can be used to seek informal guidance on specific initiatives.
The Commission asks companies to provide as much detail as possible on the initiative (the firm(s), product(s) or service(s) concerned; the scope and set-up of the cooperation; the aspects that may raise competition concerns; and an explanation of the benefits of the cooperation, and why it is necessary and proportionate). The information provided will be treated with utmost confidentiality, although it may be shared with national competition authorities (NCAs) in the context of the working arrangements of the ECN.
The Commission notes that DG Competition can only provide guidance on the compatibility of cooperation initiatives with EU antitrust law, and not with consumer protection laws. Further, NCAs are well placed to deal with specific competition issues that primarily concern their particular member state.
The Commission emphasises that under these exceptional circumstances, businesses and consumers must receive protection under competition law. It will therefore continue to closely and actively monitor relevant market developments to detect companies which take advantage of the current situation to breach antitrust law. The Commission also encourages businesses and citizens to continue reporting any cartels and other antitrust violations, including abuses of dominant positions, that may come to their attention. For these purposes, the Commission’s whistleblower tool can be used and the Commission's leniency programme remains fully applicable.