1. Commitment Decisions under Article 9 of Regulation 1/2003: A critical assessment and lessons learned from the current decisional practice Andreas Scordamaglia CLEEN Workshop - Norwich 11-13 June 2008 European University Institute - Department of Law

2. Introduction Andreas Scordamaglia (EUI) - Commitments Article 9(1) of Regulation 1/2003: Where the Commission intends to adopt a decision requiring that an infringement be brought to an end and the undertakings concerned offer commitments to meet the concerns expressed to them by the Commission in its preliminary assessment, the Commission may by decision make those commitments binding on the undertakings. Such a decision may be adopted for a specified period and shall conclude that there are no longer grounds for action by the Commission.

3. Presentation layout 1. Genesis and Challenges of Commitment Decisions 2.Adopting Article 9 Commitment decisions 3.Content of Article 9 Commitment decisions 4.Effects and Judicial Review of Article 9 Decisions 5.Commission s informal settlements practice 6.Concluding Remarks – Challenges Ahead Andreas Scordamaglia (EUI) - Commitments

4. I. The Genesis and the Challenges of Commitment Decisions 1.Emergence of Article 9 Commitment decisions 2.Advantages 1.For competition authorities: (a) an early closing of a file ending b) minimises the risk of an appeals c) effectively frees up valuable resources d) a more flexible, better targeted and consensual remedies 2.For private undertakings: a) an automatic elimination of the risk of being imposed a fine, b) saving on time and legal / economic advice fees, c) commitment decisions cannot be used for private damages claims, d) better suited solution through greater insight of the Commission s concerns, e) avoidance of negative publicity 3.Risks 1.Lack of transparency (no follow-on actions, no precedential value) 2.Risk of Commission abuse (ex. Alrosa judgement) Andreas Scordamaglia (EUI) - Commitments

5. II. Adopting of Article 9 Commitment decisions Andreas Scordamaglia (EUI) - CLEEN Workshop 2008 1.Commission s powers of initiative 2.Scope of application and the risk of indirect regulation 3.Preliminary assessment : form and content 4.The undertakings commitment proposal 5.The Commission s assessment of the commitment proposal 6.Interested parties observations – Market-testing : Article 27(4) 1.Assessment of the third party observations 2.Access to third party observations

6. III. Content of Article 9 Commitment decisions (1) Andreas Scordamaglia (EUI) - CLEEN Workshop 2008 1.The rules of substance i.Types and extent of commitments ii.Period of validity 2.The Commissions decisional practice: currently 11 decisions issued, 5 pending, 2 ongoing investigation) i.Article 81 (10 cases) a.Football media right cases (Bundesliga COMP/37.214 ; Premier League COMP/38.173 b.Collective societies cases (Cannes Agreement COMP/38.681 ; BUMA & SABAM COMP/39.151 & COMP/37.749, CISAC COMP/38/698) c.The Airline Cooperation Agreement cases (AA/SAS COMP/37.749 ; Sky Team COMP/37.984) d.Vertical restraints cases (Repsol COMP/38.348 ; Daimler Chrysler etc COMP/39.143 ; Groupement des Cartes Bancaires COMP/38.606 ii.Article 82 (3 cases) a.Coca-cola COMP/39.116 b.Distrigaz COMP/37.966 c.Alrosa/De Beers COMP/38.381 d.E.ON and RWE (MEMO/08/132)

7. III. Content of Article 9 Commitment decisions (2) Andreas Scordamaglia (EUI) - CLEEN Workshop 2008

8. IV. Effects and Judicial Review of Article 9 Decisions Andreas Scordamaglia (EUI) - CLEEN Workshop 2008 1.Effects on the concerned undertaking i.Compliance safeguards (Articles 23(2) and 24 Reg.1/2003) ii.Reopening the proceedings 2.Effects on third parties 3.Effects on competition enforcers (Rec.13(2) v Art.16) i.On the Commission ii.On NCAs iii.On National Courts 4.Judicial review - alignment to Article 7 decisions

9. V. The Commission s informal settlements practice (1) Andreas Scordamaglia (EUI) - CLEEN Workshop 2008 1.General Overview (2000-2005 only 10% of cases closed through formal decision procedure CPR2005)CPR2005 2.Informal settlements in post-modernisation i.The last-minute cases (Gaz de France (IP/04/573), Interbrew (IP/04/574) ii.The Gas Supply market cases (Distrigaz) 3.Other sectors i.Hollywood Studios (IP/04/1314) ii.Deutsche Telekom (IP/05/1033) iii.Phillips CD-Recordable Disk (IP/06/139)

10. V. The Commission s informal settlements practice (2) Andreas Scordamaglia (EUI) - CLEEN Workshop 2008

11. V. The Commission s informal settlements practice (3) Andreas Scordamaglia (EUI) - CLEEN Workshop 2008

12. Concluding Remarks Andreas Scordamaglia (EUI) - CLEEN Workshop 2008 1.Increasing use of commitments 2.Predominance of Article 81 (notification cases) 3.Article 82 cases - significant number ; particular interest in the gas sector 4.Informal settlements perseverance 5.Alrosa judgement : clearly accountability of the Commission 1.Commission expected to substantiate its preliminary assessment 2.Full judicial review of the proportionality 3.Clear protection of undertakings procedural rights 6.Lessened attraction to commit for the Commission although probably still useful for the future

13. Andreas Scordamaglia (EUI) - CLEEN Workshop 2008 Thank you very much for your attention