Sector Inquiries: What for

1
Sector Inquiries What for?

• Lorena Boix Alonso
• European Commission
• Cabinet of Commissioner Neelie Kroes

2
Sector inquiries

• What?
• When?
• How?
• What for?
• What lessons?
• What next?

3
What is a sector inquiry?

• An enforcement instrument
• Article 17 is part of Regulation 1/2003
• Link between Article 17 and the enforcement of
  Articles 81 and 82
• Its proactive character is key since
  modernisation
• Implications
• Not (only) an information gathering exercise.
• The applicaiton of fairly broad powers of
  investigation is justified.

4
When to launch a sector inquiry?

• When it emerges that competition in a particular
  sector is not working effectively
• Aware that other tools are avilable
• Inquiries are useful when
• The problem is widespreasd and involves several
  economic actors
• The opening of individual investigations is not
  sufficient
• A fact-finding exercise could help clarifying the
  reasons
• Complex sectors where competition problems at
  different levels interact
• Collusion is not suspected

5
How are sector inquiries undertaken?

• Commission has all powers of investigation except
  the power to inspect non-business premises
• Tools requests for information, power to take
  statements, power of inspection by the Commission
  or NCA, periodic penalty payments and fines.
• In practice questionnaires

6
Sector inquiries what for?

• Commission does not have the power to impose a
  wide range of remedies
• 3 types of outcomes
• opening individual enforcement actions (81-82)
• informing the Commissions policy decisions to
  regulate or de-regulate
• fostering proactive changes

7
What lessons from recent practice?

• Importance of public support and political
  momentum
• Cooperation with other Commission services (DG
  MARKT, DG TREN)
• Organisation

8
Conclusion - What next?

• Sector inquiries are a powerful tool but not
  every competition problem is to be solved using
  this instrument
• What next?...