1. European Commission, DG Competition Fifth Annual Conference on Competition Enforcement in the CCE Member States 21 February 2014, Bratislava 1 Due Process in EU Competition Law - Recent Package of Best Practices and Mandate for the Hearing Officer Paul Csiszár Director Markets and Cases IV: Basic Industries, Manufacturing and Agriculture DG Competition

2. European Commission, DG Competition 2 Drivers for change Why does improving enforcement procedures matter? enhances fact-finding ability helps to avoid errors wins stakeholder respect ensures accountability supports intervention by agencies

3. European Commission, DG Competition 3 Respect of procedural rights and transparency How to integrate these principles? Each agency has its own solutions to common problems: there is no one-size fits all formula Agencies should seek constant improvement: there must be willingness to listen and adjust Need to bear in mind the need for efficient proceedings

4. European Commission, DG Competition 4 The EU System of Competition Enforcement Final Review by Court of Justice Judicial Review by General Court European Commission (integrated public enforcer)

5. European Commission, DG Competition 5 The EU System of Competition Enforcement EU enforcement system of an integrated authority plus court review is fundamentally sound The recent judgment of the ECtHR (Menarini) confirms that this system is compliant with the ECHR The Commission’s enforcement procedures are subject to the rule of law and ensure a high standard of procedural rights The Commission is committed to ensuring the “right outcome” and has in place a range of internal checks and balances

6. European Commission, DG Competition 6 Checks and Balances Decision taken by the College Within DG COMP Peer review panel Horizontal Case coordination Chief Economist Hearing Officer (interim report) Independent review functions - Reporting directly to the Competition Commissioner Other Commission departments Member States’ competition authorities DG COMP case team Legal Service Other Commission DGs Hearing Officer (final report) Advisory Committee Hierarchical approval

7. European Commission, DG Competition 7 Comprehensive rights of defence and procedural guarantees for parties Procedural rights and guarantees during the investigation phase Right to receive a Statement of Objections Full right of access to the Commission’s investigation file Right to be heard: –Right to respond to the Commission’s objections –Right to a formal oral hearing Right to a reasoned decision

8. European Commission, DG Competition 8 Room for Improvement New package of measures: –Definitive Best Practices: increase interaction with parties and enhance transparency and predictability of proceedings –Revised Hearing Officer’s Mandate: strengthens mechanisms for safeguarding procedural rights

9. European Commission, DG Competition 9 How we got there Four steps: 1. Publication of a draft set of Antitrust Best Practices, the Hearing Officer Guidance and Best Practices for the submission of economic evidence, published in 2010 2. Ensured immediate, provisional application 3. Gained experience and listened to stakeholders 4. Made adjustments, factoring in the need for efficient proceedings, and make definitive

10. European Commission, DG Competition 10 Increasing transparency and predictability Antitrust Best Practices Provide A-Z of antitrust proceedings for the first time Provide guidance as to how commitment procedure works in practice Provide greater transparency to all stakeholders (public announcements at key stages, publication of rejection of complaints) Improve interaction with parties

11. European Commission, DG Competition 11 Enhanced interaction with parties Antitrust Best Practices  Early opening of proceedings so that parties & scope of investigation is known rapidly  State of Play meetings to the parties offered at key points of the proceedings  Early access to key submissions, including the complaint  Inclusion of a section on fines in the Statement of Objections, including parameters for the calculation of possible fines. Greater transparency also introduced with regard to Inability to Pay requests.

12. European Commission, DG Competition 12 Enhanced interaction with parties (cont.) BPs on submission of economic evidence –Outline the criteria economic and econometric analysis provided by companies should fulfil –Will streamline the submission, and assessment of, such economic evidence –Explains practice of DG COMP when interacting with parties which submit economic evidence

13. European Commission, DG Competition 13 New safeguards to ensure respect of procedural rights Revised Mandate for the Hearing Officer: –The HO is independent of DG COMP and has ensured respect of the right to be heard since 1982 –Expands and consolidates role of the HO: Expands the role of the HO to encompass the effective exercise of procedural rights throughout proceedings Reinforces and bolsters the independence of the HO Increases possibilities to go to HO as independent arbiter –Does not fundamentally change role of HO or the oral hearing

14. European Commission, DG Competition 14 New safeguards to ensure respect of procedural rights (cont.) HO new role in investigation phase: LPP, right not to self- incriminate, deadlines, information on procedural status Report on procedural rights throughout proceedings Commitments / settlements: HO role as introduced in the settlements procedure reflected and extended to commitment procedures Enhances means of preparation of the Oral Hearing

15. European Commission, DG Competition 15 To conclude The Best Practices and the revised Hearing Officer Mandate are intended to underline the Commission’s commitment to constantly improve its procedures Transparent and fair procedures benefit not just the parties, but are crucial for an effective and credible competition regime

16. European Commission, DG Competition 16 Thank you for your attention!