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Sector Inquiries: What for?

Sector Inquiries: What for?. Lorena Boix Alonso European Commission Cabinet of Commissioner Neelie Kroes. Sector inquiries:. What? When? How? What for? What lessons? What next?. What is a sector inquiry?. An enforcement instrument: Article 17 is part of Regulation 1/2003

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Sector Inquiries: What for?

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  1. Sector Inquiries: What for? Lorena Boix Alonso European Commission Cabinet of Commissioner Neelie Kroes

  2. Sector inquiries: • What? • When? • How? • What for? • What lessons? • What next?

  3. What is a sector inquiry? • An enforcement instrument: • Article 17 is part of Regulation 1/2003 • Link between Article 17 and the enforcement of Articles 81 and 82 • Its proactive character is key since modernisation • Implications: • Not (only) an information gathering exercise. • The applicaiton of fairly broad powers of investigation is justified.

  4. When to launch a sector inquiry? • When it emerges that competition in a particular sector is not working effectively • Aware that other tools are avilable • Inquiries are useful when: • The problem is widespreasd and involves several economic actors • The opening of individual investigations is not sufficient • A fact-finding exercise could help clarifying the reasons • Complex sectors where competition problems at different levels interact • Collusion is not suspected

  5. How are sector inquiries undertaken? • Commission has all powers of investigation except the power to inspect non-business premises • Tools: requests for information, power to take statements, power of inspection by the Commission or NCA, periodic penalty payments and fines. • In practice: questionnaires

  6. Sector inquiries: what for? • Commission does not have the power to impose a wide range of remedies • 3 types of outcomes: • opening individual enforcement actions (81-82) • informing the Commission’s policy decisions to regulate or de-regulate • fostering proactive changes

  7. What lessons from recent practice? • Importance of public support and political momentum • Cooperation with other Commission services (DG MARKT, DG TREN) • Organisation

  8. Conclusion - What next? • Sector inquiries are a powerful tool but not every competition problem is to be solved using this instrument • What next?...

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