International Competition Network conference held in Japan
The seventh annual International Competition Network (ICN) conference was held from 14–16 April in Kyoto, Japan. The global network enables competition agencies, both new and old, to discuss competition enforcement and policy issues of common concern. More than 500 delegates and competition experts, representing more than 70 competition agencies from around the world, participated in the conference, along with competition experts from international organisations and the legal, business, consumer and academic communities.
During this conference, the ICN adopted new recommended practices on the assessment of dominance, substantial market power and the application of unilateral conduct rules to state-created monopolies. Two new chapters of the Anti-cartel enforcement manual on investigative strategy and interviewing were also published. Recommended practices for merger analysis were completed and a report titled Setting notification thresholds for merger review was released. During the conference a partnership program to facilitate exchanges and experience was implemented.
Europe
European Court of Justice rules Deutsche Telekom abused position
Deutsche Telekom (DT), Germany's dominant telecom provider, could face massive compensation claims following a decision of the European Court of Justice (ECJ) that the company abused its monopoly on the market for fixed network connections between 1998 and 2002.
The ECJ has fined DT AUD$22.6 million for restricting competition, stating that DT’s competitors were restricted from increasing their market share as a result of the high fees charged by DT for access to its fixed network. Competitors were charged higher fees for access to DT’s fixed network than it charged its own end customers, which forced rival operators to demand higher prices from their customers.
United Kingdom
United Kingdom Competition Commission publishes grocery inquiry report
The UK’s Competition Commission has published its final report following its inquiry into UK groceries retailing. The CC received over 700 submissions from retailers, suppliers, consumers, local authorities and other interested parties; held 81 hearings in England, Scotland, Wales and Northern Ireland; and analysed existing data and research covering the whole industry.
The CC has concluded that action is needed to improve competition in local markets and to address relationships between retailers and their suppliers.
Among the package of remedies proposed by the CC are the following recommendations:
the inclusion of a ‘competition test’ in planning decisions on larger grocery stores
action to prevent land agreements that can restrict entry by competitors
the creation of a new strengthened and extended groceries supply code of practice
the establishment of an independent ombudsman to oversee and enforce the code.
