COVID-19 and the Market: The HCC Urges Market Players to Comply with Competition Rules
COVID-19 and the Market: The HCC Urges Market Players to Comply with Competition Rules
On 7 March 2020, the Hellenic Competition Commission (HCC) issued a Press Release highlighting that the Authority will protect healthy competition in the market, consumers’ interests and economic growth during the COVID-19 pandemic. Potential intent to increase or maintain companies’ profits or pass-on financial burden to consumers through illegal agreements or unilateral abusive practices jeopardizes the public interest and harms the consumers, without any countervailing benefit for society.
The HCC stressed that in view of phenomena that distort market conditions, it will prioritise any case that may be brought to the authority’s attention, through a complaint, leniency application from a cartel member, or another source of information (press, web, public announcements, etc.). Moreover, it cautioned that where a company is found taking advantage of the situation caused by the Covid-19 virus, public health and the sensitivity of the public, it will impose strict penalties to the companies applying anticompetitive practices.
Read the full text on HCC’s site, here.
Following up on its first Press Release, the HCC issued a second one on the 16 March 2020 clarifying, in particular, a number of issues relating to those practices in agreements and concerted practices that restrict and distort competition between undertakings operating at different levels of the production or distribution chain (‘vertical agreements’), reiterating the provisions of Regulation (EU) No 330/2010 “Block Exemption Regulation” (BER).
In its press release, the HCC focuses on price-fixing and indicates which practices in relation to resale prices constitute hardcore restrictions of competition and which may be allowed. Indicatively, it provides some examples of compliant practices under the present social and economic conditions:
- Manufacturers of personal hygiene products may set the maximum resale prices which may be applied by their buyers/customers retailers on their products.
- In a food distribution network, the producer may set recommended resale prices for these products.
- If a new product is introduced in the market, even the setting of a resale price may be justified for short periods (e.g. in relation to promotions/campaigns from two to six weeks).
- An internet platform/marketplace can set a price cap on the products which are made available through it.
Finally, the HCC clarifies that it “will not take action against practices which relate to the imposition of maximum resale prices or recommended prices on supply contracts and distribution agreements”, where the supplier’s market share in the relevant market, i.e. the market of goods or services in which he sells the goods or services, does not exceed 30%, and the market share of the buyer in the relevant market, i.e. the market in which he purchases the goods or services, does not exceed 30%.
Read the full text on HCC’s site, here.
On 7 March 2020, the Hellenic Competition Commission (HCC) issued a Press Release highlighting that the Authority will protect healthy competition in the market, consumers’ interests and economic growth during the COVID-19 pandemic. Potential intent to increase or maintain companies’ profits or pass-on financial burden to consumers through illegal agreements or unilateral abusive practices jeopardizes the public interest and harms the consumers, without any countervailing benefit for society.
The HCC stressed that in view of phenomena that distort market conditions, it will prioritise any case that may be brought to the authority’s attention, through a complaint, leniency application from a cartel member, or another source of information (press, web, public announcements, etc.). Moreover, it cautioned that where a company is found taking advantage of the situation caused by the Covid-19 virus, public health and the sensitivity of the public, it will impose strict penalties to the companies applying anticompetitive practices.
Read the full text on HCC’s site, here.
Following up on its first Press Release, the HCC issued a second one on the 16 March 2020 clarifying, in particular, a number of issues relating to those practices in agreements and concerted practices that restrict and distort competition between undertakings operating at different levels of the production or distribution chain (‘vertical agreements’), reiterating the provisions of Regulation (EU) No 330/2010 “Block Exemption Regulation” (BER).
In its press release, the HCC focuses on price-fixing and indicates which practices in relation to resale prices constitute hardcore restrictions of competition and which may be allowed. Indicatively, it provides some examples of compliant practices under the present social and economic conditions:
- Manufacturers of personal hygiene products may set the maximum resale prices which may be applied by their buyers/customers retailers on their products.
- In a food distribution network, the producer may set recommended resale prices for these products.
- If a new product is introduced in the market, even the setting of a resale price may be justified for short periods (e.g. in relation to promotions/campaigns from two to six weeks).
- An internet platform/marketplace can set a price cap on the products which are made available through it.
Finally, the HCC clarifies that it “will not take action against practices which relate to the imposition of maximum resale prices or recommended prices on supply contracts and distribution agreements”, where the supplier’s market share in the relevant market, i.e. the market of goods or services in which he sells the goods or services, does not exceed 30%, and the market share of the buyer in the relevant market, i.e. the market in which he purchases the goods or services, does not exceed 30%.
Read the full text on HCC’s site, here.
