Brussels, 23 March 2020

On the 23rd of March 2020, the European Competition Network (ECN) has released a joint statement on the application of competition law during the Corona crisis.

Established to boost cooperation between the European Commission and the national competition authorities of the EU Member States, the ECN creates an effective mechanism to counter companies which engage in cross-border practices restricting competition and provides means to ensure that competition rules are applied. Through the ECN, the competition authorities inform each other of proposed decisions and take on board comments from the other competition authorities, pooling their experience and identifying best practices.

Through this body, the European competition authorities released the following joint statement:

  • The ECN is fully aware of the social and economic consequences triggered by the COVID-19 outbreak in the EU/EEA.
  • The different EU/EEA competition instruments have mechanisms to take into account, where appropriate and necessary, market and economic developments. Competition rules ensure a level playing field between companies. This objective remains relevant also in a period when companies and the economy as a whole suffer from crisis conditions.
  • The ECN understands that this extraordinary situation may trigger the need for companies to cooperate in order to ensure the supply and fair distribution of scarce products to all consumers. In the current circumstances, the ECN will not actively intervene against necessary and temporary measures put in place in order to avoid a shortage of supply.
  • Considering the current circumstances, such measures are unlikely to be problematic, since they would either not amount to a restriction of competition under Article 101 TFEU/53 EEA or generate efficiencies that would most likely outweigh any such restriction. If companies have doubts about the compatibility of such cooperation initiatives with EU/EEA competition law, they can reach out to the Commission, the EFTA Surveillance Authority or the national competition authority concerned any time for informal guidance.
  • At the same time, it is of utmost importance to ensure that products considered essential to protect the health of consumers in the current situation (e.g. face masks and sanitising gel) remain available at competitive prices. The ECN will therefore not hesitate to take action against companies taking advantage of the current situation by cartelising or abusing their dominant position.
  • In this context, the ECN would like to point out that the existing rules allow manufacturers to set maximum prices for their products. The latter could prove useful to limit unjustified price increase at the distribution level.