Challenges in Decentralisation of Competition Law Enforcement

 
Decentralisation of competition law
enforcement and its challenges
Where do we stand and is change required?
 
Krystyna Kowalik-Bańczyk
, Judge at EU G
eneral Court
25 March 2022
 
1
 
 
Decentralisation
after 18 years
 
2
 
 
1. 
Where do we stand?
d
ecentralisation v. centralisation
2. Challenges
relationship – national/EU law
best placed authority
ne bis in idem
3. Need for change?
 how to achieve coherence and
 
convergence?
 
ECN 
+
 
D
irective
 
W
h
e
r
e
 
d
o
 
w
e
 
s
t
a
n
d
?
CENTRALISATION
 
European Commission – less cases
What is left?
Negociated proceedings
Pan-EU cartels and abuse of
dominance cases
General Court and Court of Justice -
more
 
direct actions 
:
Hybric proceedings - 
C-440/19 P
Pometon/Commission
Direct actions for pan-EU cases
DECENTRALISATION
 
NCAs 
some 
r
ecurring problems 
:
National and EU level (Generics, Slovak
 
Telekom, Truck cartel)
Court of Justice – fewer preliminary
questions:
C-857/19 Slovak Telekom, C-617/17 PZU
C-308/19 Whiteland
C-307/18 Generics, 28/18 Budapest Bank
C-882/19 Sumal, C-724/17 Skanska,
 
C-30/20 Volvo
 
3
 
Best placed authority
LL-Carpenter/Commission,
T-531/18
Intepretation of art. 13(2) 
R
eg
.
1/2003
Para. 47: the word 
‘deal with’
 does
not simply mean that another
authority has received a complaint or
that it has before it 
a case 
of its own
motion
Para. 64:  Commission is entitled to
give 
differing degrees of priority
 to
the complaints brought before it
[
Agria Polska e.a./Commission,
T‑480/15
]
 
Sped-Pro/Commission, T-791/19
 
Commission can reject the complaint if the
applicant’s rights are satisfactorily protected
(
Au Lys de France/Commission, T‑458/04
)
right to effective judicial protection (Art. 2 TEU,
Art. 19 para 1 TEU, Art. 47 of the Charter)
Para 86: NCA has to be absolutely independent
in order to assure effictiveness of EU
competition law
Para 
98
: serious reasons to presume that there
is a risk of violation of fundamental rights of
the undertaking concerned if the case is
handled at the national level
 
4
 
Ne bis in idem
 
Art. 50 Charter in antitrust context – PZU Życie/UOKIK
,
C‑617/17
 
- both EU and national law can be applied by the
same authority
Slovak Telekom/Protimonopolny urad Slovenskej republiky
,
C‑857/19
 
- both EU aut
h
ority and national authority may
look into the same/similar behaviour if 
relating to separate
product markets or separate geographical markets
Opinion of AG Bobek – bpost/Autorit
é
 belge de
concurrence
,
 C-117/20
 
– both competition law and
regulat
ory
 law applied – judgement on
 22 March 2022
 
5
 
 
Need for change?
 
Coherence and convergence – by legislation or by jurisprudence?
Modernisation was already introduced by ECN + Directive
effectiveness in enforcement: autonomy and independence of NCAs
better cooperation between NCAs
Art. 3 of Dir. - harminisation of national procedural standards, also in purely
internal situations
Preamble lists: right to good administration, rights of defence, right t
o be 
heard
Art. 8 – privilege against self-incrimination
 
6
 
 
Conclusions
 
Composite legal space
 -
 enhanced level of
complexity
 and risk of overlaps
R
eturn to centralisation?
NCAs and national courts still at the frontline
but for exceptional cases only
 
7
 
 
Thank you for
your attention
 
 
 
8
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Krystyna Kowalik-Ba.czyk discusses the challenges of decentralising competition law enforcement and the need for potential changes. The presentation highlights the current status, issues with decentralisation, the role of national competition authorities, and the importance of coherence and convergence.

  • Decentralisation
  • Competition Law
  • Enforcement Challenges
  • EU General Court
  • National Authorities

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  1. Decentralisation of competition law enforcement and its challenges Where do we stand and is change required? 1 Krystyna Kowalik-Ba czyk, Judge at EU General Court 25 March 2022

  2. 1. Where do we stand? decentralisation v. centralisation 2. Challenges relationship national/EU law best placed authority ne bis in idem 3. Need for change? Decentralisation after 18 years 2 how to achieve coherence and convergence? ECN + Directive

  3. Where do we stand? Where do we stand? DECENTRALISATION CENTRALISATION NCAs some recurring problems : National and EU level (Generics, Slovak Telekom, Truck cartel) Court of Justice fewer preliminary questions: C-857/19 Slovak Telekom, C-617/17 PZU C-308/19 Whiteland C-307/18 Generics, 28/18 Budapest Bank C-882/19 Sumal, C-724/17 Skanska, C-30/20 Volvo European Commission less cases What is left? Negociated proceedings Pan-EU cartels dominance cases and abuse of General Court and Court of Justice - more direct actions : Hybric proceedings - C-440/19 P Pometon/Commission Direct actions for pan-EU cases 3

  4. Best placed authority LL-Carpenter/Commission, T-531/18 Intepretation of 1/2003 Para. 47: the word deal with does not simply mean authority has received a complaint or that it has before it a case of its own motion Para. 64: Commission is entitled to give differing degrees of priority to the complaints brought before it [Agria Polska T-480/15] Sped-Pro/Commission, T-791/19 Commission can reject the complaint if the applicant s rights are satisfactorily protected (Au Lys de France/Commission, T-458/04) art. 13(2) Reg. right to effective judicial protection (Art. 2 TEU, Art. 19 para 1 TEU, Art. 47 of the Charter) that another Para 86: NCA has to be absolutely independent in order to assure competition law effictiveness of EU Para 98: serious reasons to presume that there is a risk of violation of fundamental rights of the undertaking concerned if the case is handled at the national level e.a./Commission, 4

  5. Ne bis in idem Art. 50 Charter in antitrust context PZU ycie/UOKIK, C-617/17 - both EU and national law can be applied by the same authority Slovak Telekom/Protimonopolny urad Slovenskej republiky, C-857/19 - both EU authority and national authority may look into the same/similar behaviour if relating to separate product markets or separate geographical markets Opinion of AG Bobek concurrence, C-117/20 both competition law and regulatory law applied judgement on 22 March 2022 5 bpost/Autorit belge de

  6. Need for change? Coherence and convergence by legislation or by jurisprudence? Modernisation was already introduced by ECN + Directive effectiveness in enforcement: autonomy and independence of NCAs better cooperation between NCAs Art. 3 of Dir. - harminisation of national procedural standards, also in purely internal situations Preamble lists: right to good administration, rights of defence, right to be heard Art. 8 privilege against self-incrimination 6

  7. Conclusions Composite legal space - enhanced level of complexity and risk of overlaps Return to centralisation? NCAs and national courts still at the frontline but for exceptional cases only 7

  8. Thank you for your attention 8

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