The Competition and Consumer Protection Commission (CCPC) has highlighted a consultation process recently opened by the European Commission on parts of EU competition law.

The consultation covers draft guidelines produced by the commission aimed at clarifying the application of article 102 of the Treaty on the Functioning of the European Union (TFEU). The CCPC points out that EU competition law is mainly covered by articles 101 and 102, but that there are currently no guidelines on enforcing the latter.

To address this, the EU body has developed draft guidelines on exclusionary abuses of dominance and has recently opened a consultation, inviting the public to share their views. Draft Guidelines on the application of Article 102 of the Treaty on the Functioning of the European Union to abusive exclusionary conduct by dominant undertakings

Article 102

Any abuse by one or more undertakings of a dominant position within the internal market or in a substantial part of it shall be prohibited as incompatible with the internal market in so far as it may affect trade between Member States.

Such abuse may, in particular, consist in:

(a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;

(b) limiting production, markets or technical development to the prejudice of consumers;

(c) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;(d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

The Competition and Consumer Protection Commission (CCPC) is responsible for, inter alia, enforcement and promotion of Irish and European competition and consumer law.

For any breach of Irish or European competition law, the Commission may have the right to seek a criminal prosecution, to pursue the matter in the civil courts, or both.  It has the power to investigate if there is evidence that businesses are involved in anti-competitive practices, such as price-fixing, or that businesses are abusing a dominant position. It can also block mergers between businesses that would substantially reduce competition and harm consumers.

This legislation has been in the news recently with the European Union (EU) accusing Apple in June of this year of stifling competition on its app store, marking the first time EU regulators have used new digital rules on a big tech group. If found guilty, Apple faces a penalty of up to 10 per cent of its global annual revenue. The fines can rise to 20 per cent in the event the offence is repeated, the EU said.

While earlier this month the UK Competition and Markets Authority (CMA) provisionally found that Google’s actions as a dominant player in adtech is harming advertisers and publishers and may have broken competition law.

A statement released by the CMA said that Google appears to preference its own services in the provision of digital ads on websites, thereby disadvantaging competitors that use its adtech services.

All interested parties can submit their comments on the draft guidelines by 31st October 2024. https://competition-policy.ec.europa.eu/public-consultations/2024-article-102-guidelines_en#how-to-submit-your-contribution

 

NB – This is a guide for information purposes only and does not constitute legal advice. If you have an issue requiring legal advice, please contact any of the team at Nolan Farrell & Goff LLP, whose numbers can be found on our website www.nfg.ie, or email info@nfg.ie.