EC wants to make competition watchdogs stronger, more autonomous

The European Commission proposed new rules for competition watchdogs on Wednesday, intended to enable Member States' authorities to be more effective enforcers of EU antitrust rules.

It followed a public consultation on empowering national competition authorities to be more effective, which the commission launched in November 2015.

The proposed rules, once adopted, would reportedly provide the national competition authorities with a ‘minimum common toolkit’ and effective enforcement powers.

It would reportedly make sure the authorities acted independently when enforcing EU antitrust rules and worked in a “fully impartial” manner, without taking instructions from public or private entities.

The proposal would also ensure regulators have the “necessary financial and human resources” to do their work, the powers needed to gather all relevant evidence, such as the right to search mobile phones, laptops and tablets, and adequate tools to “impose proportionate and deterrent sanctions” for breaches of EU antitrust rules.

It included rules on parental liability and succession so that companies could not escape fines through corporate restructuring.

The EC said national competition authorities would also be able to enforce the payment of fines against infringing companies that do not have a legal presence on their territory, which it said was an important feature as an increasing number of companies operate internationally.

“EU antitrust rules make markets work better, with Member States' competition authorities and the commission working hand in hand in this regard,” said commissioner in charge of competition policy Margrethe Vestager.

“That is why we want all national competition authorities to be able to take decisions fully independently and have effective tools at their disposal to stop and sanction infringements.

“A well-functioning single market is to the benefit of European consumers and businesses.”

The commission said the proposal underlined the importance of companies' fundamental rights and required authorities to respect appropriate safeguards for the exercise of their powers, in accordance with the EU Charter of Fundamental Rights.

The proposal for new rules would take the form of a directive that would allow national specificities to be respected.