Tuesday 24 March 2020

ECN Joint Statement on application of competition law in Coronavirus Crisis








ECN Joint Statement on application of competition law in Coronavirus Crisis

The European Competition Network (ECN) has issued a joint statement setting out how competition law should be applied in the context of the ongoing COVID-19 outbreak.

A few points are noteworthy:

·         The ECN it is fully aware of the social and economic consequences of the COVID-19 outbreak in the EU/EEA.

·         Competition rules ensure a level playing field between companies. This objective remains relevant also in a period when companies and the economy as a whole suffer from crisis conditions.

·         The ECN understands that this extraordinary situation may trigger the need for companies to cooperate to ensure the supply and fair distribution of scarce products to all consumers.  In the current circumstances, such measures are unlikely to be problematic, since they would either not amount to a restriction of competition under Article 101 of the TFEU or generate efficiencies that would most likely outweigh any such restriction.

·         If companies have doubts about the compatibility of such cooperation initiatives with EU competition law, they can reach out to the Commission, the EFTA Surveillance Authority or the national competition authority concerned any time for informal guidance.

·         At the same time, it is of utmost importance to ensure that products considered essential to protect the health of consumers (such as face masks and sanitising gel) remain available at competitive prices.

·         The existing rules allow manufacturers to set maximum prices for their products. This could prove useful to limit unjustified price increase at the distribution level.







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