Saturday 31 May 2008

EU TFEU: Competition and public undertakings

Public undertakings and undertakings with exclusive rights are prohibited from discriminating on the grounds of nationality and they are subject to the EU’s competition rules, including state aid.

Although undertakings (firms) operating services of general economic interest and revenue-producing monopolies (‘milk-cows’) are still subject to EU competition rules according to the Treaty of Lisbon ‘in so far as the application of such rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them’, continued legislative and court battles loom on the horizon, when the lines have to be drawn between undistorted competition in the single market and the requirements of services for citizens or seemingly bottomless state coffers.


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Article 106 of the Treaty on the Functioning of the European Union (TFEU) is found in the consolidated version of the Treaty on European Union and the Treaty on the Functioning of the European Union, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/90–91:

Part Three ‘Policies and internal actions of the Union’

Title VII Common rules on competition, taxation and approximation of laws

Chapter 1 Rules on competition

Section 1 Rules applying to undertakings

Article 106 TFEU
(ex Article 86 TEC)

1. In the case of public undertakings and undertakings to which Member States grant special or exclusive rights, Member States shall neither enact nor maintain in force any measure contrary to the rules contained in the Treaties, in particular to those rules provided for in Article 18 and Articles 101 to 109.

2. Undertakings entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly shall be subject to the rules contained in the Treaties, in particular to the rules on competition, in so far as the application of such rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them. The development of trade must not be affected to such an extent as would be contrary to the interests of the Union.

3. The Commission shall ensure the application of the provisions of this Article and shall, where necessary, address appropriate directives or decisions to Member States.

***

In Article 2, point 76 of the Treaty of Lisbon (ToL) the intergovernmental conference (IGC 2007) amended Article 85 TEC and in point 77 it made changes to Article 87 TEC. Thus, there were no specific amendments to Article 86 TEC. Cf. OJ 17.12.2007 C 306/68–69.

***

The TFEU table of equivalences tells us that Article 86 TEC first became Article 86 TFEU (ToL) in the original Treaty of Lisbon, but later renumbered Article 106 TFEU in the consolidated version (OJ 17.12.2007 C 306/211).

***

The current Article 86 of the Treaty establishing the European Community (TEC) is found under Title VI ‘Common rules on competition, taxation and approximation of laws’, Chapter 1 ‘Rules on competition’, Section 1 ‘Rules applying to undertakings’, in the latest consolidated version of the treaties in force (OJ 29.12.2006 C 321 E/76).

In Article 106 TFEU the Articles referred to were renumbered. According Article 2, horizontal amendment 2(b) ‘this Treaty’ became ‘the Treaties’ and in line with horizontal amendment 2(a) ‘the Community’ was replaced by ‘the Union’. Cf. OJ 17.12.2007 C 306/41.

The EC Treaty in force reads like this:

Article 86 TEC

1. In the case of public undertakings and undertakings to which Member States grant special or exclusive rights, Member States shall neither enact nor maintain in force any measure contrary to the rules contained in this Treaty, in particular to those rules provided for in Article 12 and Articles 81 to 89.

2. Undertakings entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly shall be subject to the rules contained in this Treaty, in particular to the rules on competition, in so far as the application of such rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them. The development of trade must not be affected to such an extent as would be contrary to the interests of the Community.

3. The Commission shall ensure the application of the provisions of this Article and shall, where necessary, address appropriate directives or decisions to Member States.

***

For the sake of a systematic comparison, we look at the Article during the previous treaty reform stages.

First, we turn to the European Convention, the nearest thing we as EU citizens have had to a constituent assembly, which located the provisions on competition in Part III ‘The policies and functioning of the Union’, Title III ‘Internal policies and action’, Chapter I ‘Internal market’, Section 5 ‘Rules on competition’, with Subsection 1 ‘Rules applying to undertakings’.

The attentive reader notices minor differences compared to the current TEC in all three paragraphs of Article III-55 of draft Treaty establishing a Constitution for Europe, but none of them had any material impact (OJ 18.7.2003 C 169/36):

Article III-55 Draft Constitution

1. In the case of public undertakings and undertakings to which Member States grant special or exclusive rights, Member States shall neither enact nor maintain in force any provision contrary to the provisions of the Constitution, in particular Article I-4(2) and Articles III-55 to III-58.

2. Undertakings entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly shall be subject to the provisions of the Constitution, in particular to the rules on competition, insofar as the application of such rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them. The development of trade must not be affected to such an extent as would be contrary to the Union's interests.

3. The Commission shall ensure the application of this Article and shall, where necessary, adopt appropriate European regulations or decisions.

***

In the Treaty establishing a Constitution for Europe the provisions on competition were located in Part III ‘The policies and functioning of the Union’, Title III ‘Internal policies and action’, Chapter I ‘Internal market’, Section 5 ‘Rules on competition’, with Subsection 1 ‘Rules applying to undertakings’.

Article III-166 of the Constitutional Treaty was materially the same as the corresponding provision of the draft, although the Articles referred to were naturally numbered differently and there were small differences in the wording.

As a matter of curiosity, for some reason the Constitutional Treaty used the term ‘income-producing monopoly’ in the second paragraph, where all the other versions speak of a ‘revenue-producing monopoly’. Since the TFEU is based on the current TEC, bypassing the draft Constitution and the Constitutional Treaty, this is not a real issue, but it would be interesting to know how such a change came about during the IGC 2004.

Without an explanation I am at a loss to see how this could have been an improvement on current terminology. As far as I understand, all companies want to generate income. The peculiarity of (state) monopolies has been their task to generate revenue for the state, by the strength of their privileged position, setting aside the ‘normal’ rules of competition in the national market and therefore potentially harmful in the context of an extended common market (later named internal market).

Anyway, here is how the IGC 2004 tried to strike the balance between the requirements of competition in the internal market and the privileged position of public undertakings with exclusive rights, services of general economic interest and ‘revenue-producing’ monopolies (OJ 16.12.2004 C 310/70–71):

Article III-166 Constitution

1. In the case of public undertakings and undertakings to which Member States grant special or exclusive rights, Member States shall neither enact nor maintain in force any measure contrary to the Constitution, in particular Article I-4(2) and Articles III-161 to III-169.

2. Undertakings entrusted with the operation of services of general economic interest or having the character of an income-producing monopoly shall be subject to the provisions of the Constitution, in particular to the rules on competition, insofar as the application of such provisions does not obstruct the performance, in law or in fact, of the particular tasks assigned to them. The development of trade must not be affected to such an extent as would be contrary to the Union's interests.

3. The Commission shall ensure the application of this Article and shall, where necessary, adopt appropriate European regulations or decisions.

***

We have seen that Article 106 TFEU, as many other Articles where the (draft Constitution and) the Constitutional Treaty made no substantive difference, is a technical adjustment of the current TEC Article.

***


What has been said about Article 106 TFEU?


United Kingdom

Professor Steve Peers covered the Treaty of Lisbon in a number of Statewatch Analyses. ‘EU Reform Treaty Analysis no. 3.3: Revised text of Part Three, Titles I to VI of the Treaty establishing the European Community (TEC): Internal Market and competition’ (Version 2, 23 October 2007) includes the current Title VI Common rules on competition, taxation and approximation of laws.

Peers highlighted the amendment to Article 86 TEC and TFEU (ToL), to be renumbered Article 106 TFEU in the consolidated version, without comment (page 26).

The analysis 3.3 and other useful Statewatch analyses are available through:

http://www.statewatch.org/euconstitution.htm

***

The Foreign and Commonwealth Office (FCO) offers a convenient source of brief annotations on Lisbon Treaty amendments in ‘A comparative table of the current EC and EU treaties as amended by the Treaty of Lisbon’ (Command Paper 7311, published 21 January 2008). It offers the following comment on Article 106 TFEU, Article 86 TFEU (ToL) in the original Lisbon Treaty (page 11):

“In substance the same as Article 86 TEC.”

The FCO comparative table is available at:

http://www.official-documents.gov.uk/document/cm73/7311/7311.asp

***

The UK House of Commons Library Research Paper 07/86 ‘The Treaty of Lisbon: amendments to the Treaty establishing the European Community’ (published 6 December 2007) discussed competition on pages 57 to 60. It did not comment on Article 86 TEC and ToL. See page 58.

The Library Research Paper 07/86 is available at:

http://www.parliament.uk/commons/lib/research/rp2007/rp07-086.pdf

***

The House of Lords European Union Committee report ‘The Treaty of Lisbon: an impact assessment, Volume I: Report’ (HL Paper 62-I, published 13 March 2008) discussed the internal market and competition on pages 218 and 219.

The main discussion centred on concerns about the removal of ‘free and undistorted competition’ (according to Article I-3(2) of the Constitutional Treaty objectives), but the Committee offered the following general statement on the contents of the competition provisions (page 218):

“9.14. The rules on competition contained in previous treaties would be unchanged by the Lisbon Treaty. Articles 101–103 of the TFEU are the same as Articles 81–83 of the TEC. They give the EU power to legislate to combat practices “which have as their object or effect the prevention, restriction or distortion of competition”.

But I found nothing on Article 106 TFEU (Article 86 TEC and ToL) in this context.

On the other hand, the Committee did, in general terms, discuss Article 14 TFEU on services of general interest, including Protocol (No 26) on services of general interest (on pages 221 and 222). The conclusions were:

“9.40. The impact of the Treaty of Lisbon on Services of General Interest is not significant.

9.41. Given that Article 51 of the TEU, as amended by the Treaty of Lisbon, gives Protocols and Annexes equal weight to the Treaty Articles, the split between Article 14 and the Protocol on Services of General Interest is not one of significance.”

The report is accessible at:

http://www.publications.parliament.uk/pa/ld200708/ldselect/ldeucom/62/62.pdf

My comment: Article 14 TFEU, which is located among the provisions having general application, is meant to operate without prejudice to Article 106 TFEU (and others). Services of general interest include services of general economic interest, one of the categories of undertakings (firms) mentioned in Article 106(2) and subject to more lenient competition rules, as far as required by their tasks. Therefore, Article 106 TFEU has to be read and applied in the context of Article 14 TFEU and Protocol No 26.

Their Lordships may have concluded (possibly correctly) that the impact of the Lisbon Treaty on services of general interest is not significant, but I am not going be overly astonished if a mercantilistic founding member applies pressure based on a contrary assumption.

***

Sweden

The consultation paper of the government of Sweden, ‘Lissabonfördraget; Statsrådsberedningen, Departementsserien (Ds), Ds 2007:48’ published 20 December 2007, deals with the internal market on pages 261 to 269, ’22.1 Inre marknaden’. There is a brief description of the existing competition rules, Articles 81 to 89 TEC, on page 262.

On pages 265 to 266 the consultation paper explains the amendments to the competition rules (Konkurrensregler), but Article 86 TFEU (ToL) is not mentioned specifically.

The consultation paper ’Lissabonfördraget’ is available at:

http://www.regeringen.se/content/1/c6/09/49/81/107aa077.pdf

***

Finland

The Finnish ratification bill, ‘Hallituksen esitys Eduskunnalle Euroopan unionista tehdyn sopimuksen ja Euroopan yhteisön perustamissopimuksen muuttamisesta tehdyn Lissabonin sopimuksen hyväksymisestä ja laiksi sen lainsäädännön alaan kuuluvien määräysten voimaansaattamisesta’ (HE 23/2008 vp), briefly states the unchanged nature of Article 86 TFEU (ToL), renumbered Article 106 TFEU (page 207):

”86 artiklaa (uusi 106 artikla), joka sääntelee julkisten yritysten toimintaa, ei muuteta.”

The Finnish ratification bill is available at:

http://www.finlex.fi/fi/esitykset/he/2008/20080023.pdf


The Swedish language version of the ratification bill ‘Regeringens proposition till Riksdagen med förslag om godkännande av Lissabonfördraget om ändring av fördraget om Europeiska unionen och fördraget om upprättandet av Europeiska gemenskapen och till lag om sättande i kraft av de bestämmelser i fördraget som hör till området för lagstiftningen’ (RP 23/2008 rd), offers the same brief statement about Article 86 TFEU (ToL), the future Article 106 TFEU, on page 210:

”Artikel 86 (blivande artikel 106), som reglerar offentliga företags verksamhet, ändras inte.”

The ratification bill in Swedish can be accessed at:

http://www.finlex.fi/sv/esitykset/he/2008/20080023.pdf



Ralf Grahn

Friday 30 May 2008

EU TFEU: Commission competition enforcement

The Commission is entrusted to enforce the competition rules of the European Community (European Union), by investigating infringements and bringing them to an end. The EU Treaty of Lisbon gives the Commission express powers to adopt regulations relating to the categories of agreement in respect of which the Council has adopted a regulation or a directive, but this reflects current practice concerning block exemptions.


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Article 105 of the Treaty on the Functioning of the European Union (TFEU) is found in the consolidated version of the Treaty on European Union and the Treaty on the Functioning of the European Union, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/90:

Part Three ‘Policies and internal actions of the Union’

Title VII Common rules on competition, taxation and approximation of laws

Chapter 1 Rules on competition

Section 1 Rules applying to undertakings

Article 105 TFEU
(ex Article 85 TEC)

1. Without prejudice to Article 104, the Commission shall ensure the application of the principles laid down in Articles 101 and 102. On application by a Member State or on its own initiative, and in cooperation with the competent authorities in the Member States, which shall give it their assistance, the Commission shall investigate cases of suspected infringement of these principles. If it finds that there has been an infringement, it shall propose appropriate measures to bring it to an end.

2. If the infringement is not brought to an end, the Commission shall record such infringement of the principles in a reasoned decision. The Commission may publish its decision and authorise Member States to take the measures, the conditions and details of which it shall determine, needed to remedy the situation.

3. The Commission may adopt regulations relating to the categories of agreement in respect of which the Council has adopted a regulation or a directive pursuant to Article 103(2)(b).

***

In Article 2, point 76 of the Treaty of Lisbon (ToL) the intergovernmental conference (IGC 2007) amended Article 85 TEC (OJ 17.12.2007 C 306/68):

76) In Article 85, the following new paragraph 3 shall be added:

‘3. The Commission may adopt regulations relating to the categories of agreement in respect of which the Council has adopted a regulation or a directive pursuant to Article 83(2)(b).’.

***

The TFEU table of equivalences tells us that Article 85 TEC first became Article 85 TFEU (ToL) in the original Treaty of Lisbon, but later renumbered Article 105 TFEU in the consolidated version (OJ 17.12.2007 C 306/211).

***

The current Article 85 of the Treaty establishing the European Community (TEC) is found under Title VI ‘Common rules on competition, taxation and approximation of laws’, Chapter 1 ‘Rules on competition’, Section 1 ‘Rules applying to undertakings’, in the latest consolidated version of the treaties in force (OJ 29.12.2006 C 321 E/76).

In Article 105 TFEU the Articles referred to were renumbered and the new third paragraph was inserted, so here is the current Article 85 TEC:

Article 85 TEC

1. Without prejudice to Article 84, the Commission shall ensure the application of the principles laid down in Articles 81 and 82. On application by a Member State or on its own initiative, and in cooperation with the competent authorities in the Member States, which shall give it their assistance, the Commission shall investigate cases of suspected infringement of these principles. If it finds that there has been an infringement, it shall propose appropriate measures to bring it to an end.

2. If the infringement is not brought to an end, the Commission shall record such infringement of the principles in a reasoned decision. The Commission may publish its decision and authorise Member States to take the measures, the conditions and details of which it shall determine, needed to remedy the situation.

***

For the sake of a systematic comparison, we look at the Article during the previous treaty reform stages.

First, we turn to the European Convention, which located the provisions on competition in Part III ‘The policies and functioning of the Union’, Title III ‘Internal policies and action’, Chapter I ‘Internal market’, Section 5 ‘Rules on competition’, with Subsection 1 ‘Rules applying to undertakings’.

The draft Treaty establishing a Constitution for Europe used the terms ‘European decision’ and ‘European regulations’. Naturally, the Articles referred to in Article III-54 were numbered differently. There were slight changes to the wording, without material impact, but a new third paragraph was added (OJ 18.7.2003 C 169/36):

Article III-54 Draft Constitution

1. Without prejudice to Article III-53, the Commission shall ensure the application of the principles laid down in Articles III-50 and III-51. On application by a Member State or on its own initiative, and in cooperation with the competent authorities in the Member States, which shall give it their assistance, the Commission shall investigate cases of suspected infringement of these principles. If it finds that there has been an infringement, it shall propose appropriate measures to bring it to an end.

2. If the infringement is not brought to an end, the Commission shall adopt a reasoned European decision recording the infringement of the principles. The Commission may publish its decision and authorise Member States to take the steps, the conditions and details of which it shall determine, needed to remedy the situation.

3. The Commission may adopt European regulations relating to the categories of agreement in respect of which the Council of Ministers has acted pursuant to Article III-52(2)(b).

***

In the Treaty establishing a Constitution for Europe the provisions on competition were located in Part III ‘The policies and functioning of the Union’, Title III ‘Internal policies and action’, Chapter I ‘Internal market’, Section 5 ‘Rules on competition’, with Subsection 1 ‘Rules applying to undertakings’.

Article III-165 of the Constitutional Treaty was materially the same as the corresponding provision of the draft, although there were small differences in the wording (OJ 16.12.2004 C 310/70):

Article III-165 Constitution

1. Without prejudice to Article III-164, the Commission shall ensure the application of the principles set out in Articles III-161 and III-162. On application by a Member State or on its own initiative, and in cooperation with the competent authorities in the Member States, which shall give it their assistance, the Commission shall investigate cases of suspected infringement of these principles. If it finds that there has been an infringement, it shall propose appropriate measures to bring it to an end.

2. If the infringement referred to in paragraph 1 is not brought to an end, the Commission shall adopt a reasoned European decision recording the infringement of the principles. The Commission may publish its decision and authorise Member States to take the measures, the conditions and details of which it shall determine, needed to remedy the situation.

3. The Commission may adopt European regulations relating to the categories of agreement in respect of which the Council has adopted a European regulation pursuant to Article III-163, second paragraph, (b).

***

We have seen that Article 105 TFEU adopted the new third paragraph proposed by the European Convention and agreed by the IGC 2004, although ‘European regulations’ became mere ‘regulations’ and the act adopted by the Council changed from ‘European regulation’ to ‘regulation or a directive’.


***


What has been said about Article 105 TFEU?


United Kingdom

Professor Steve Peers covered the Treaty of Lisbon in a number of Statewatch Analyses. ‘EU Reform Treaty Analysis no. 3.3: Revised text of Part Three, Titles I to VI of the Treaty establishing the European Community (TEC): Internal Market and competition’ (Version 2, 23 October 2007) includes the current Title VI Common rules on competition, taxation and approximation of laws.

Peers highlighted the amendment to Article 85 TEC and TFEU (ToL), to be renumbered Article 105 TFEU in the consolidated version, with a short comment (pages 25–26):

“The amendment reflects existing practice.”

The analysis 3.3 and other useful Statewatch analyses are available through:

http://www.statewatch.org/euconstitution.htm

***

The Foreign and Commonwealth Office (FCO) offers a convenient source of brief annotations on Lisbon Treaty amendments in ‘A comparative table of the current EC and EU treaties as amended by the Treaty of Lisbon’ (Command Paper 7311, published 21 January 2008). It offers the following comment on Article 105 TFEU, Article 85 TFEU (ToL) in the original Lisbon Treaty (page 11):

“Paragraphs 1 and 2 are unchanged from Article 85 TEC. Paragraph 3 is new.”

The FCO comparative table is available at:

http://www.official-documents.gov.uk/document/cm73/7311/7311.asp

***

The UK House of Commons Library Research Paper 07/86 ‘The Treaty of Lisbon: amendments to the Treaty establishing the European Community’ (published 6 December 2007) discussed competition on pages 57 to 60. It described Article 85 TEC and ToL on page 58:

“Article 85 (Constitution Article III-165) gives the Commission the authority to investigate competition infringements within its competence, and requires Member States to assist the Commission in this work. There is one addition to the text in Article 85(3) (Constitution Article III-165(3)) to the effect that, where the Council has adopted a regulation pursuant to this provision, the Commission is empowered to adopt a regulation or directive relating to the categories of agreement.”

The Library Research Paper 07/86 is available at:

http://www.parliament.uk/commons/lib/research/rp2007/rp07-086.pdf

***

The House of Lords European Union Committee report ‘The Treaty of Lisbon: an impact assessment, Volume I: Report’ (HL Paper 62-I, published 13 March 2008) discussed the internal market and competition on pages 218 and 219.

The main discussion centred on concerns about the removal of ‘free and undistorted competition’ (according to Article I-3(2) of the Constitutional Treaty objectives), but the Committee offered the following statement on the contents of the competition provisions (page 218):

“9.14. The rules on competition contained in previous treaties would be unchanged by the Lisbon Treaty. Articles 101–103 of the TFEU are the same as Articles 81–83 of the TEC. They give the EU power to legislate to combat practices “which have as their object or effect the prevention, restriction or distortion of competition”.

But I found nothing on Article 105 TFEU (Article 85 TEC and ToL).

The report is accessible at:

http://www.publications.parliament.uk/pa/ld200708/ldselect/ldeucom/62/62.pdf

***

Sweden

The consultation paper of the government of Sweden, ‘Lissabonfördraget; Statsrådsberedningen, Departementsserien (Ds), Ds 2007:48’ published 20 December 2007, deals with the internal market on pages 261 to 269, ’22.1 Inre marknaden’. There is a brief description of the existing competition rules, Articles 81 to 89 TEC, on page 262.

On pages 265 to 266 the consultation paper explains the amendments to the competition rules (Konkurrensregler). With regard to Article 85(3) TFEU (ToL), the paper mentions that the Commission is given express authorisation to issue rules on block exemptions concerning categories of agreements decided by the Council, and it adds that the amendment reflects current practice:

”Vad avser kommissionens möjligheter att anta vissa genomförandebestämmelser för gruppundantag anges det uttryckligen att kommissionen får anta förordningar avseende de avtalskategorier som rådet har beslutat om (artikel 85.3 i EUF-fördraget). Ändringen motsvarar nuvarande tillämpning.”

The consultation paper ’Lissabonfördraget’ is available at:

http://www.regeringen.se/content/1/c6/09/49/81/107aa077.pdf

***

Finland

The Finnish ratification bill, ‘Hallituksen esitys Eduskunnalle Euroopan unionista tehdyn sopimuksen ja Euroopan yhteisön perustamissopimuksen muuttamisesta tehdyn Lissabonin sopimuksen hyväksymisestä ja laiksi sen lainsäädännön alaan kuuluvien määräysten voimaansaattamisesta’ (HE 23/2008 vp), describes the proposed Commission powers to issue block exemptions, but it makes the observation that this has been the case on the basis of powers delegated by the Council. The comment on Article 85 TFEU (ToL), renumbered Article 105 TFEU is the following (page 207):

”85 artiklaan (uusi 105 artikla) lisätään uusi 3 kohta, jonka nojalla komissio voi antaa sellaisten sopimusten ryhmiä koskevia asetuksia, joista neuvosto on antanut asetuksen tai direktiivin SEUT 83 artiklan 2 kohdan b alakohdan mukaisesti. Komission antamat asetukset ovat SEUT 81 artiklan 3 kohdan soveltamista koskevia niin sanottuja ryhmäpoikkeusasetuksia. EY-sopimuksessa ei ole vastaavaa määräystä, jossa nimenomaisesti todettaisiin komission toimivaltuus antaa asetuksia SEY 81 artiklan 3 kohdan soveltamisesta sopimusten ryhmiin. Komissiolla on kuitenkin jo nykyisin mahdollisuus antaa SEY 81 artiklan 3 kohdan soveltamista koskevia ryhmäpoikkeusasetuksia, jos neuvosto on asetuksella antanut komissiolle siihen toimivaltuudet. Komission toimivallan kirjaaminen perussopimukseen ei siten tuo muutosta vallitsevaan oikeustilaan. Määräys on samansisältöinen kuin perustuslakisopimuksen III-165 artikla.”

The Finnish ratification bill is available at:

http://www.finlex.fi/fi/esitykset/he/2008/20080023.pdf


The Swedish language version of the ratification bill ‘Regeringens proposition till Riksdagen med förslag om godkännande av Lissabonfördraget om ändring av fördraget om Europeiska unionen och fördraget om upprättandet av Europeiska gemenskapen och till lag om sättande i kraft av de bestämmelser i fördraget som hör till området för lagstiftningen’ (RP 23/2008 rd), offers the same observations about Article 85 TFEU (ToL), the future Article 105 TFEU, on page 210:

”Till artikel 85 (blivande artikel 105) fogas en ny punkt 3, med stöd av vilken kommissionen får anta förordningar avseende de avtalskategorier för vilka rådet har antagit en förordning eller ett direktiv i enlighet med artikel 83.2 punkt b i EUF-fördraget. De förordningar som antagits av kommissionen är s.k. gruppundantagsförordningar som gäller tillämpningen av artikel 81.3 i EUF-fördraget. I EG-fördraget ingår inte någon motsvarande bestämmelse där det uttryckligen skulle konstateras att kommissionen har befogenheter att anta förordningar avseende tillämpningen av artikel 81.3 i EG-fördraget på avtalskategorier. Kommissionen har emellertid redan nu möjlighet att anta förordningar om gruppundantag som gäller tillämpningen av artikel 81.3 i EG-fördraget, om rådet genom förordning har gett kommissionen befogenheter att göra det. Att kommissionens befogenheter skrivs in i grundfördraget innebär således ingen ändring i det rådande rättsläget. Bestämmelsen har samma innehåll som artikel III-165 i det konstitutionella fördraget.”

The ratification bill in Swedish can be accessed at:

http://www.finlex.fi/sv/esitykset/he/2008/20080023.pdf



Ralf Grahn

Thursday 29 May 2008

EU TFEU: Competition transition provision

The transitional provision on competition rules seems to illustrate the institutional focus of the treaty reform aspirations during the last decade. The EU Treaty of Lisbon makes technical adjustments, without taking notice of the relevance or irrelevance of most provisions concerning the internal policy areas.

If the Treaty of Lisbon enters into force, there might be an opening to modernise the Treaty on the Functioning of the European Union (TFEU).


***

Article 104 of the Treaty on the Functioning of the European Union (TFEU) is found in the consolidated version of the Treaty on European Union and the Treaty on the Functioning of the European Union, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/90:

Part Three ‘Policies and internal actions of the Union’

Title VII Common rules on competition, taxation and approximation of laws

Chapter 1 Rules on competition

Section 1 Rules applying to undertakings

Article 104 TFEU
(ex Article 84 TEC)

Until the entry into force of the provisions adopted in pursuance of Article 103, the authorities in Member States shall rule on the admissibility of agreements, decisions and concerted practices and on abuse of a dominant position in the internal market in accordance with the law of their country and with the provisions of Article 101, in particular paragraph 3, and of Article 102.

***

In Article 2, point 75 of the Treaty of Lisbon (ToL) the intergovernmental conference (IGC 2007) laid out the specific amendments to Article 80 TEC and point 76 amended Article 85 TEC. Thus, no specific amendments were made to Article 84 TEC (OJ 17.12.2007 C 306/68).

***

The TFEU table of equivalences tells us that Article 84 TEC first became Article 84 TFEU (ToL) in the original Treaty of LIsbon, but later renumbered Article 104 TFEU in the consolidated version (OJ 17.12.2007 C 306/211).

***

The current Article 84 of the Treaty establishing the European Community (TEC) is found under Title VI ‘Common rules on competition, taxation and approximation of laws’, Chapter 1 ‘Rules on competition’, Section 1 ‘Rules applying to undertakings’, in the latest consolidated version of the treaties in force (OJ 29.12.2006 C 321 E/75).

In Article 104 TFEU the words ‘common market’ were replaced by ‘internal market’ in accordance with the Article 2 of the Treaty of Lisbon, horizontal amendment 2(g). Cf. OJ 17.12.2007 C 306/41..

In addition, the Articles referred to were renumbered in the amending treaty. For ease of use, the current Article 84 TEC is reproduced here in full:

Article 84 TEC

Until the entry into force of the provisions adopted in pursuance of Article 83, the authorities in Member States shall rule on the admissibility of agreements, decisions and concerted practices and on abuse of a dominant position in the common market in accordance with the law of their country and with the provisions of Article 81, in particular paragraph 3, and of Article 82.

***

For the sake of a systematic comparison, we look at the Article during the previous treaty reform stages.

First, we turn to the European Convention, which located the provisions on competition in Part III ‘The policies and functioning of the Union’, Title III ‘Internal policies and action’, Chapter I ‘Internal market’, Section 5 ‘Rules on competition’, with Subsection 1 ‘Rules applying to undertakings’.

The draft Treaty establishing a Constitution for Europe opted for the term ‘internal market’ and Article III-53 defined the legal instruments in the field of competition as ‘European regulations’. Naturally, the Articles referred to were numbered differently. Otherwise the rewording was minimal. In case someone wants to study the draft provisions more closely, the text looked like this (OJ 18.7.2003 C 169/36):

Article III-53 Draft Constitution

Until the entry into force of the European regulations adopted pursuant to Article III-52, the authorities in Member States shall rule on the admissibility of agreements, decisions and concerted practices and on abuse of a dominant position in the internal market in accordance with their internal law and Articles III-50, in particular paragraph 3, and Article III-51.

***

The location of Article III-164 of the Treaty establishing a Constitution for Europe was the same as for the corresponding provision of the draft (OJ 16.12.2004 C 310/70).

The term ‘internal law’ became ‘national law’ and the Articles referred to were numbered differently:

Article III-164 Constitution

Until the entry into force of the European regulations adopted pursuant to Article III-163, the authorities in Member States shall rule on the admissibility of agreements, decisions and concerted practices and on abuse of a dominant position in the internal market in accordance with their national law and Article III-161, in particular paragraph 3, and Article III-162.

***

We have seen that Article 104 TFEU, content to make only horizontal and technical adjustments, is almost exactly the same as the current Article 84 TEC. Thus, instead of legal instruments with distinct names, the provision refers to ‘the provisions adopted in pursuance of Article 103’.

***


What has been said about Article 104 TFEU?


United Kingdom

Professor Steve Peers covered the Treaty of Lisbon in a number of Statewatch Analyses. ‘EU Reform Treaty Analysis no. 3.3: Revised text of Part Three, Titles I to VI of the Treaty establishing the European Community (TEC): Internal Market and competition’ (Version 2, 23 October 2007) includes the current Title VI Common rules on competition, taxation and approximation of laws.

Peers highlighted the amendment to Article 84 TEC and TFEU (ToL), to be renumbered Article 104 TFEU in the consolidated version, without comment (page 25).

The analysis 3.3 and other useful Statewatch analyses are available through:

http://www.statewatch.org/euconstitution.htm

***

The Foreign and Commonwealth Office (FCO) offers a convenient source of brief annotations on Lisbon Treaty amendments in ‘A comparative table of the current EC and EU treaties as amended by the Treaty of Lisbon’ (Command Paper 7311, published 21 January 2008). It offers the following comment on Article 104 TFEU, Article 84 TFEU (ToL) in the original Lisbon Treaty (page 11):

“Unchanged from Article 84 TEC.”

The FCO comparative table is available at:

http://www.official-documents.gov.uk/document/cm73/7311/7311.asp

***

The UK House of Commons Library Research Paper 07/86 ‘The Treaty of Lisbon: amendments to the Treaty establishing the European Community’ (published 6 December 2007) discussed competition on pages 57 to 60. It commented on Articles 81 and 82 as well as Article 85 TEC and ToL on page 58, but Article 84 TEC and ToL drew no comment.

The Library Research Paper 07/86 is available at:

http://www.parliament.uk/commons/lib/research/rp2007/rp07-086.pdf

***

The House of Lords European Union Committee report ‘The Treaty of Lisbon: an impact assessment, Volume I: Report’ (HL Paper 62-I, published 13 March 2008) discussed the internal market and competition on pages 218 and 219.

The main discussion centred on concerns about the removal of ‘free and undistorted competition’ (according to Article I-3(2) of the Constitutional Treaty objectives), but the Committee offered the following statement on the contents of the competition provisions (page 218):

“9.14. The rules on competition contained in previous treaties would be unchanged by the Lisbon Treaty. Articles 101–103 of the TFEU are the same as Articles 81–83 of the TEC. They give the EU power to legislate to combat practices “which have as their object or effect the prevention, restriction or distortion of competition”.

As we see, Article 104 TFEU (Article 84 TEC and ToL) was not mentioned.

The report is accessible at:

http://www.publications.parliament.uk/pa/ld200708/ldselect/ldeucom/62/62.pdf

***

Sweden

The consultation paper of the government of Sweden, ‘Lissabonfördraget; Statsrådsberedningen, Departementsserien (Ds), Ds 2007:48’ published 20 December 2007, deals with the internal market on pages 261 to 269, ’22.1 Inre marknaden’. There is a brief description of the existing competition rules, Articles 81 to 89 TEC, on page 262.

On pages 265 to 266 the consultation paper explains the amendments to the competition rules (Konkurrensregler), but there are no specific comments on Article 84 TFEU (ToL).

The consultation paper ’Lissabonfördraget’ is available at:

http://www.regeringen.se/content/1/c6/09/49/81/107aa077.pdf

***

Finland

The Finnish ratification bill, ‘Hallituksen esitys Eduskunnalle Euroopan unionista tehdyn sopimuksen ja Euroopan yhteisön perustamissopimuksen muuttamisesta tehdyn Lissabonin sopimuksen hyväksymisestä ja laiksi sen lainsäädännön alaan kuuluvien määräysten voimaansaattamisesta’ (HE 23/2008 vp), includes only a short comment on the unchanged nature of Article 84 TFEU (ToL), renumbered Article 104 TFEU (on page 207):

”84 artiklaa (uusi 104 artikla), joka koskee 83 artiklan nojalla annettujen asetusten ja direktiivien täytäntöönpanoa jäsenvaltioissa, ei muuteta.”

The Finnish ratification bill is available at:

http://www.finlex.fi/fi/esitykset/he/2008/20080023.pdf

The Swedish language version of the ratification bill ‘Regeringens proposition till Riksdagen med förslag om godkännande av Lissabonfördraget om ändring av fördraget om Europeiska unionen och fördraget om upprättandet av Europeiska gemenskapen och till lag om sättande i kraft av de bestämmelser i fördraget som hör till området för lagstiftningen’ (RP 23/2008 rd), offers the same brief observation about Article 84 TFEU (ToL), the future Article 104 TFEU, on page 210:

”Artikel 84 (blivande artikel 104), som gäller genomförandet av förordningar och direktiv som antagits med stöd av artikel 83, ändras inte.”

The ratification bill in Swedish can be accessed at:

http://www.finlex.fi/sv/esitykset/he/2008/20080023.pdf

***

European Community (European Union) competition law and policy is a developed area, with treaty provisions, secondary legislation, supplementing guidelines and a significant body of case law.

Today, areas not covered by EC law seem marginal or inexistent, especially after Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty (Text with EEA relevance), as amended by Regulations No 411/2004 and 1419/2006:

Council Regulation (EC) No 411/2004 of 26 February 2004 repealing Regulation (EEC) No 3975/87 and amending Regulations (EEC) No 3976/87 and (EC) No 1/2003, in connection with air transport between the Community and third countries (Text with EEA relevance)

Council Regulation (EC) No 1419/2006 of 25 September 2006 repealing Regulation (EEC) No 4056/86 laying down detailed rules for the application of Articles 85 and 86 of the Treaty to maritime transport, and amending Regulation (EC) No 1/2003 as regards the extension of its scope to include cabotage and international tramp services (Text with EEA relevance)

For convenience, see the consolidated version of Regulation 1/2003:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:2003R0001:20061018:EN:PDF

In addition, we take note of the Article 3(1)(b) TFEU, on the future competition law of the European Union:

1. The Union shall have exclusive competence in the following areas:

---
(b) the establishing of the competition rules necessary for the functioning of the internal market;
---

If the Treaty of Lisbon enters into force, a reform of the policy areas in the EU treaties, especially the TFEU, seems to be called for, if only to rid the treaties of more or less redundant provisions.


Ralf Grahn

Wednesday 28 May 2008

EU TFEU: Competition regulations and directives

The Council’s powers to lay down competition rules are unaffected by the EU Treaty of Lisbon.


***

Article 103 of the Treaty on the Functioning of the European Union (TFEU) is found in the consolidated version of the Treaty on European Union and the Treaty on the Functioning of the European Union, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/89–90:

Part Three ‘Policies and internal actions of the Union’

Title VII Common rules on competition, taxation and approximation of laws

Chapter 1 Rules on competition

Section 1 Rules applying to undertakings

Article 103 TFEU
(ex Article 83 TEC)

1. The appropriate regulations or directives to give effect to the principles set out in Articles 101 and 102 shall be laid down by the Council, on a proposal from the Commission and after consulting the European Parliament.

2. The regulations or directives referred to in paragraph 1 shall be designed in particular:

(a) to ensure compliance with the prohibitions laid down in Article 101(1) and in Article 102 by making provision for fines and periodic penalty payments;

(b) to lay down detailed rules for the application of Article 101(3), taking into account the need to ensure effective supervision on the one hand, and to simplify administration to the greatest possible extent on the other;

(c) to define, if need be, in the various branches of the economy, the scope of the provisions of Articles 101 and 102;

(d) to define the respective functions of the Commission and of the Court of Justice of the European Union in applying the provisions laid down in this paragraph;

(e) to determine the relationship between national laws and the provisions contained in this Section or adopted pursuant to this Article.

***

In Article 2, point 75 of the Treaty of Lisbon (ToL) the intergovernmental conference (IGC 2007) laid out the specific amendments to Article 80 TEC and point 76 amended Article 85 TEC. Thus, no specific amendments were made to Article 83 TEC (OJ 17.12.2007 C 306/68).

***

The TFEU table of equivalences tells us that Article 83 TEC first became Article 83 TFEU (ToL) in the original Treaty of LIsbon, but later renumbered Article 103 TFEU in the consolidated version (OJ 17.12.2007 C 306/211).

***

The current Article 83 of the Treaty establishing the European Community (TEC) is found under Title VI ‘Common rules on competition, taxation and approximation of laws’, Chapter 1 ‘Rules on competition’, Section 1 ‘Rules applying to undertakings’, in the latest consolidated version of the treaties in force (OJ 29.12.2006 C 321 E/75).

In Article 103(1) TFEU the words ‘acting by a qualified majority’ were deleted in accordance with the Article 2 of the Treaty of Lisbon, horizontal amendment 2(d), and in Article 103(2)(d) the ‘Court of Justice’ became the ‘Court of Justice of the European Union’, as stated in horizontal amendment 7. Cf. OJ 17.12.2007 C 306/41 and 43.

In addition, the Articles referred to throughout have been renumbered in the amending treaty. For ease of use, Article 83 TEC is reproduced here in full:

Article 83 TEC

1. The appropriate regulations or directives to give effect to the principles set out in Articles 81 and 82 shall be laid down by the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament.

2. The regulations or directives referred to in paragraph 1 shall be designed in particular:

(a) to ensure compliance with the prohibitions laid down in Article 81(1) and in Article 82 by making provision for fines and periodic penalty payments;

(b) to lay down detailed rules for the application of Article 81(3), taking into account the need to ensure effective supervision on the one hand, and to simplify administration to the greatest possible extent on the other;

(c) to define, if need be, in the various branches of the economy, the scope of the provisions of Articles 81 and 82;

(d) to define the respective functions of the Commission and of the Court of Justice in applying the provisions laid down in this paragraph;

(e) to determine the relationship between national laws and the provisions contained in this Section or adopted pursuant to this Article.

***

For the sake of a systematic comparison, we look at the Article during the previous treaty reform stages.

First, we turn to the European Convention, which located the provisions on competition in Part III ‘The policies and functioning of the Union’, Title III ‘Internal policies and action’, Chapter I ‘Internal market’, Section 5 ‘Rules on competition’, with Subsection 1 ‘Rules applying to undertakings’.

The draft Treaty establishing a Constitution for Europe the first paragraph was slightly reworded and the draft used the term ‘Council of Ministers’ and the legal instruments to be used pursuant to Article III-52 were defined as ‘European regulations’. Naturally, the Articles referred to were numbered differently. In case someone wants to study the draft provisions more closely, the text looked like this (OJ 18.7.2003 C 169/36):

Article III-52 Draft Constitution

1. The Council of Ministers, on a proposal from the Commission, shall adopt the European regulations to give effect to the principles set out in Articles III-50 and III-51. It shall act after consulting the European Parliament.

2. The European regulations referred to in paragraph 1 shall be designed in particular:

(a) to ensure compliance with the prohibitions laid down in Article III-50(1) and in Article III-51 by making provision for fines and periodic penalty payments;

(b) to lay down detailed rules for the application of Article III-50(3), taking into account the need to ensure effective supervision on the one hand, and to simplify administration to the greatest possible extent on the other;

(c) to define, if need be, in the various branches of the economy, the scope of the provisions of Articles III-50 and III-51;

(d) to define the respective functions of the Commission and of the Court of Justice in applying the provisions laid down in this paragraph;

(e) to determine the relationship between national laws and this Section or the European regulations adopted pursuant to this Article.

***

The location of Article III-162 of the Treaty establishing a Constitution for Europe was the same as for the corresponding provision of the draft (OJ 16.12.2004 C 310/69–70).

The ‘Council of Ministers’ became the ‘Council’, ‘Such regulations’ replaced ‘The European regulations referred to in paragraph 1’, the ‘Court of Justice of the European Union’ replaced the ‘Court of Justice’ and ‘national laws and this Section’ became ‘Member States’ laws and this Subsection’.

We take note of the fact that (European) regulations were the intended legal instruments. The numbering of the Articles referred to was different from the draft:

Article III-163 Constitution

The Council, on a proposal from the Commission, shall adopt the European regulations to give effect to the principles set out in Articles III‑161 and III‑162. It shall act after consulting the European Parliament.

Such regulations shall be designed in particular:

(a) to ensure compliance with the prohibitions laid down in Article III-161(1) and in Article III-162 by making provision for fines and periodic penalty payments;

(b) to lay down detailed rules for the application of Article III-161(3), taking into account the need to ensure effective supervision on the one hand, and to simplify administration to the greatest possible extent on the other;

(c) to define, if need be, in the various branches of the economy, the scope of Articles III-161 and III-162;

(d) to define the respective functions of the Commission and of the Court of Justice of the European Union in applying the provisions laid down in this paragraph;

(e) to determine the relationship between Member States' laws and this Subsection as well as the European regulations adopted pursuant to this Article.

***

We have seen that Article 103 TFEU, content to make only horizontal and technical adjustments, is almost exactly the same as the current Article 83 TEC. Thus, the legal instruments are still described as ‘regulations or directives’.

***


What has been said about Article 103 TFEU?


United Kingdom

Professor Steve Peers covered the Treaty of Lisbon in a number of Statewatch Analyses. ‘EU Reform Treaty Analysis no. 3.3: Revised text of Part Three, Titles I to VI of the Treaty establishing the European Community (TEC): Internal Market and competition’ (Version 2, 23 October 2007) includes the current Title VI Common rules on competition, taxation and approximation of laws.

Peers highlighted the amendments to Article 83 TEC and TFEU (ToL), to be renumbered Article 103 TFEU in the consolidated version, without comment (page 25).

The analysis 3.3 and other useful Statewatch analyses are available through:

http://www.statewatch.org/euconstitution.htm

***

The Foreign and Commonwealth Office (FCO) offers a convenient source of brief annotations on Lisbon Treaty amendments in ‘A comparative table of the current EC and EU treaties as amended by the Treaty of Lisbon’ (Command Paper 7311, published 21 January 2008). It offers the following comment on Article 103 TFEU, Article 83 TFEU (ToL) in the original Lisbon Treaty (page 11):

“Unchanged from Article 83 TEC.”

The FCO comparative table is available at:

http://www.official-documents.gov.uk/document/cm73/7311/7311.asp

***

The UK House of Commons Library Research Paper 07/86 ‘The Treaty of Lisbon: amendments to the Treaty establishing the European Community’ (published 6 December 2007) discussed competition on page 57 to 60. It commented on Articles 81 and 82 as well as Article 85 TEC and ToL on page 58, but Article 83 TEC and ToL drew no comment.

The Library Research Paper 07/86 is available at:

http://www.parliament.uk/commons/lib/research/rp2007/rp07-086.pdf

***

The House of Lords European Union Committee report ‘The Treaty of Lisbon: an impact assessment, Volume I: Report’ (HL Paper 62-I, published 13 March 2008) discussed the internal market and competition on pages 218 and 219.

The main discussion centred around concerns about the removal of ‘free and undistorted competition’ (according to Article I-3(2) of the Constitutional Treaty objectives), but the Committee offered the following statement on the contents of the competition provisions (page 218):

“9.14. The rules on competition contained in previous treaties would be unchanged by the Lisbon Treaty. Articles 101–103 of the TFEU are the same as Articles 81–83 of the TEC. They give the EU power to legislate to combat practices “which have as their object or effect the prevention, restriction or distortion of competition”.

The report is accessible at:

http://www.publications.parliament.uk/pa/ld200708/ldselect/ldeucom/62/62.pdf

***

Sweden

The consultation paper of the government of Sweden, ‘Lissabonfördraget; Statsrådsberedningen, Departementsserien (Ds), Ds 2007:48’ published 20 December 2007, deals with the internal market on pages 261 to 269, ’22.1 Inre marknaden’. There is a brief description of the existing competition rules, Articles 81 to 89 TEC, on page 262.

On pages 265 to 266 the consultation paper explains the amendments to the competition rules (Konkurrensregler), but there are no specific comments on Article 83 TFEU (ToL).

The consultation paper ’Lissabonfördraget’ is available at:

http://www.regeringen.se/content/1/c6/09/49/81/107aa077.pdf

***

Finland

The Finnish ratification bill, ‘Hallituksen esitys Eduskunnalle Euroopan unionista tehdyn sopimuksen ja Euroopan yhteisön perustamissopimuksen muuttamisesta tehdyn Lissabonin sopimuksen hyväksymisestä ja laiksi sen lainsäädännön alaan kuuluvien määräysten voimaansaattamisesta’ (HE 23/2008 vp), includes only a short comment on the unchanged nature of Article 83 TFEU (ToL), renumbered Article 103 TFEU (on page 207):

”83 artiklaa (uusi 103 artikla), jossa määrätään 81 ja 82 artiklassa tarkoitettujen periaatteiden soveltamista koskevien neuvoston asetusten ja direktiivien antamisesta, ei muuteta.”


The Finnish ratification bill is available at:

http://www.finlex.fi/fi/esitykset/he/2008/20080023.pdf

The Swedish language version of the ratification bill ‘Regeringens proposition till Riksdagen med förslag om godkännande av Lissabonfördraget om ändring av fördraget om Europeiska unionen och fördraget om upprättandet av Europeiska gemenskapen och till lag om sättande i kraft av de bestämmelser i fördraget som hör till området för lagstiftningen’ (RP 23/2008 rd), offers the same brief observation about Article 83 TFEU (ToL), the future Article 103 TFEU, on page 210:

”Artikel 83 (blivande artikel 103), där det föreskrivs om fastställandet av de förordningar och direktiv som gäller de principer som anges i artiklarna 81 och 82, ändras inte.”

The ratification bill in Swedish can be accessed at:

http://www.finlex.fi/sv/esitykset/he/2008/20080023.pdf




Ralf Grahn

Tuesday 27 May 2008

EU TFEU: Competition law: Abuse of dominant position

Yesterday we saw that agreements to distort competition continue to be prohibited in the internal market. In the same way the EU Treaty of Lisbon bans the abuse of a dominant position by a firm.


***

Article 102 of the Treaty on the Functioning of the European Union (TFEU) is found in the consolidated version of the Treaty on European Union and the Treaty on the Functioning of the European Union, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/89:

Part Three ‘Policies and internal actions of the Union’

Title VII Common rules on competition, taxation and approximation of laws

Chapter 1 Rules on competition

Section 1 Rules applying to undertakings

Article 102 TFEU
(ex Article 82 TEC)

Any abuse by one or more undertakings of a dominant position within the internal market or in a substantial part of it shall be prohibited as incompatible with the internal market in so far as it may affect trade between Member States.

Such abuse may, in particular, consist in:

(a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;

(b) limiting production, markets or technical development to the prejudice of consumers;

(c) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;

(d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

***

In Article 2, point 75 of the Treaty of Lisbon (ToL) the intergovernmental conference (IGC 2007) laid out the specific amendments to Article 80 TEC and point 76 amended Article 85 TEC. Thus, no specific amendments were made to Article 82 TEC (OJ 17.12.2007 C 306/68).

***

The TFEU table of equivalences tells us that Article 82 TEC first became Article 82 TFEU (ToL) in the original Treaty of LIsbon, but later renumbered Article 102 TFEU in the consolidated version (OJ 17.12.2007 C 306/211).

***

The current Article 82 of the Treaty establishing the European Community (TEC) is found under Title VI ‘Common rules on competition, taxation and approximation of laws’, Chapter 1 ‘Rules on competition’, Section 1 ‘Rules applying to undertakings’, in the latest consolidated version of the treaties in force (OJ 29.12.2006 C 321 E/74–75).

The only change made by Article 102 TFEU was to replace, twice, the words ‘common market’ by ‘internal market’ in the first paragraph, according to horizontal amendment 2(g). Cf. above and OJ 17.12.2007 C 306/41.

Therefore, Article 82 TEC is not reproduced here.

***

For the sake of a systematic comparison, we look at the Article during the previous treaty reform stages.

First, we turn to the European Convention, which located the provisions on competition in Part III ‘The policies and functioning of the Union’, Title III ‘Internal policies and action’, Chapter I ‘Internal market’, Section 5 ‘Rules on competition’, with Subsection 1 ‘Rules applying to undertakings’.

In Article III-51 of the draft Treaty establishing a Constitution for Europe the words ‘internal market’ were used in the first paragraph instead of ‘common market’, and the provision was exactly the same as the future Article 102 TFEU (OJ 18.7.2003 C 169/36).

***

The location and wording of Article III-162 of the Treaty establishing a Constitution for Europe was the same as for the corresponding provision of the draft (OJ 16.12.2004 C 310/69).

***

We have seen that Article 102 TFEU is almost exactly the same as the current Article 82 TEC, the only difference being the systematic use of ‘internal market’ instead of the older expression ‘common market’.

Two reminders:

First, according to Article 3(1)(b) TFEU the EU has exclusive competence in ‘the establishing of the competition rules necessary for the functioning of the internal market’.

Second, yesterday’s posting looked at the discussion caused by the disappearance of ‘free and undistorted’ competition from the objectives of the European Union between two intergovernmental conferences.

***


What has been said about Article 102 TFEU?


United Kingdom

Professor Steve Peers covered the Treaty of Lisbon in a number of Statewatch Analyses. ‘EU Reform Treaty Analysis no. 3.3: Revised text of Part Three, Titles I to VI of the Treaty establishing the European Community (TEC): Internal Market and competition’ (Version 2, 23 October 2007) includes the current Title VI Common rules on competition, taxation and approximation of laws.

Peers highlighted the amendment to Article 82 TEC and TFEU (ToL), to be renumbered Article 102 TFEU in the consolidated version, without comment (page 24–25).

The analysis 3.3 and other useful Statewatch analyses are available through:

http://www.statewatch.org/euconstitution.htm

***

The Foreign and Commonwealth Office (FCO) offers a convenient source of brief annotations on Lisbon Treaty amendments in ‘A comparative table of the current EC and EU treaties as amended by the Treaty of Lisbon’ (Command Paper 7311, published 21 January 2008). It offers the following comment on Article 102 TFEU, Article 82 TFEU (ToL) in the original Lisbon Treaty (page 11):

“Unchanged from Article 82 TEC.”

The FCO comparative table is available at:

http://www.official-documents.gov.uk/document/cm73/7311/7311.asp

***

The UK House of Commons Library Research Paper 07/86 ‘The Treaty of Lisbon: amendments to the Treaty establishing the European Community’ (published 6 December 2007) discussed competition on page 57 to 60. It commented on Article 81 TEC (the subject of yesterday’s posting) and Article 82 TEC on page 58:

“Present Article 81 TEC prohibits agreements, decisions and concerted practices (“anticompetitive agreements”) which prevent, restrict or distort competition. As one of the EU’s two main competition provisions, a substantial body of case law surrounds the interpretation of this Article. It forms the basis in the Competition Act 1998 for the Chapter I Prohibition of the UK’s domestic competition regime (ss.2, 9). Article 82 TEC is the other main competition article, prohibiting abuse of a dominant position (i.e. monopolistic abuse), which forms the basis for section 18 of the Competition Act 1998. There are no significant changes to either of these provisions in the TFEU.”

The Library Research Paper 07/86 is available at:

http://www.parliament.uk/commons/lib/research/rp2007/rp07-086.pdf

***

The House of Lords European Union Committee report ‘The Treaty of Lisbon: an impact assessment, Volume I: Report’ (HL Paper 62-I, published 13 March 2008) discussed the internal market and competition on pages 218 and 219.

The main discussion centred around concerns about the removal of ‘free and undistorted competition’ (according to Article I-3(2) of the Constitutional Treaty objectives), but the Committee offered the following statement on the contents of the competition provisions (page 218):

“9.14. The rules on competition contained in previous treaties would be unchanged by the Lisbon Treaty. Articles 101–103 of the TFEU are the same as Articles 81–83 of the TEC. They give the EU power to legislate to combat practices “which have as their object or effect the prevention, restriction or distortion of competition”.

The report is accessible at:

http://www.publications.parliament.uk/pa/ld200708/ldselect/ldeucom/62/62.pdf

***

Sweden

The consultation paper of the government of Sweden, ‘Lissabonfördraget; Statsrådsberedningen, Departementsserien (Ds), Ds 2007:48’ published 20 December 2007, deals with the internal market on pages 261 to 269, ’22.1 Inre marknaden’. On pages 265 to 266 the consultation paper explains the amendments to the competition rules (Konkurrensregler), but there are no specific comments on Articles 81 and 82 TFEU (ToL).

The consultation paper ’Lissabonfördraget’ is available at:

http://www.regeringen.se/content/1/c6/09/49/81/107aa077.pdf

***

Finland

The Finnish ratification bill, ‘Hallituksen esitys Eduskunnalle Euroopan unionista tehdyn sopimuksen ja Euroopan yhteisön perustamissopimuksen muuttamisesta tehdyn Lissabonin sopimuksen hyväksymisestä ja laiksi sen lainsäädännön alaan kuuluvien määräysten voimaansaattamisesta’ (HE 23/2008 vp), includes only a short comment on the unchanged nature of Article 82 TFEU (ToL), renumbered Article 102 TFEU (on page 207):

”82 artiklaa (uusi 102 artikla), joka koskee määräävän markkina-aseman väärinkäyttöä, ei muuteta.”


The Finnish ratification bill is available at:

http://www.finlex.fi/fi/esitykset/he/2008/20080023.pdf

The Swedish language version of the ratification bill ‘Regeringens proposition till Riksdagen med förslag om godkännande av Lissabonfördraget om ändring av fördraget om Europeiska unionen och fördraget om upprättandet av Europeiska gemenskapen och till lag om sättande i kraft av de bestämmelser i fördraget som hör till området för lagstiftningen’ (RP 23/2008 rd), offers the same brief observation about Article 82 TFEU (ToL), the future Article 102 TFEU, on page 210:

”Artikel 82 (blivande artikel 102), som gäller missbruk av en dominerande ställning på marknaden, ändras inte.”

The ratification bill in Swedish can be accessed at:

http://www.finlex.fi/sv/esitykset/he/2008/20080023.pdf



Ralf Grahn

Monday 26 May 2008

EU TFEU: Competition law: Anti-competitive agreements

The Constitutional Treaty would have offered the citizens of the European Union an internal market where competition is free and undistorted. The EU Treaty of Lisbon does not mention free and undistorted competition among the objectives of the European Union.

Therefore, most of the discussion about EU competition law in the light of the Lisbon Treaty has centred upon the symbolic downgrading of competition, whereas the unchanged substantive provisions have generated sparse comment.

The first competition Article deals with anti-competitive agreements between firms.


***

We enter a new Title, Chapter and Section in order to look at competition rules in the EU Treaty of Lisbon.

Article 101 of the Treaty on the Functioning of the European Union (TFEU) is found in the consolidated version of the Treaty on European Union and the Treaty on the Functioning of the European Union, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/88–89:

Part Three ‘Policies and internal actions of the Union’

Title VII Common rules on competition, taxation and approximation of laws

Chapter 1 Rules on competition

Section 1 Rules applying to undertakings

Article 101 TFEU
(ex Article 81 TEC)

1. The following shall be prohibited as incompatible with the internal market: all agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between Member States and which have as their object or effect the prevention, restriction or distortion of competition within the internal market, and in particular those which:

(a) directly or indirectly fix purchase or selling prices or any other trading conditions;

(b) limit or control production, markets, technical development, or investment;

(c) share markets or sources of supply;

(d) apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;

(e) make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

2. Any agreements or decisions prohibited pursuant to this Article shall be automatically void.

3. The provisions of paragraph 1 may, however, be declared inapplicable in the case of:

— any agreement or category of agreements between undertakings,

— any decision or category of decisions by associations of undertakings,

— any concerted practice or category of concerted practices,

which contributes to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, and which does not:

(a) impose on the undertakings concerned restrictions which are not indispensable to the attainment of these objectives;

(b) afford such undertakings the possibility of eliminating competition in respect of a substantial part of the products in question.

***

In Article 2, point 75 of the Treaty of Lisbon (ToL) the intergovernmental conference (IGC 2007) laid out the specific amendments to Article 80 TEC and in point 76 Article 85 TEC was amended. Thus, no specific amendments were made to Article 81 TEC (OJ 17.12.2007 C 306/68).

***

The TFEU table of equivalences tells us that Article 81 TEC first became Article 81 TFEU (ToL), but later renumbered Article 101 TFEU in the consolidated version (OJ 17.12.2007 C 306/211).

***

The current Article 81 of the Treaty establishing the European Community (TEC) is found under Title VI ‘Common rules on competition, taxation and approximation of laws’, Chapter 1 ‘Rules on competition’, Section 1 ‘Rules applying to undertakings’, in the latest consolidated version of the treaties in force (OJ 29.12.2006 C 321 E/73–74).

The only change made by Article 101 TFEU was to replace the words ‘common market’ by ‘internal market’ twice in the first paragraph, according to horizontal amendment 2(g). Cf. above and OJ 17.12.2007 C 306/41.

Therefore, Article 81 TEC is not reproduced here.

***

For the sake of a systematic comparison, we look at the Article during the previous treaty reform stages.

First, we turn to the European Convention, which located the provisions on competition in Part III ‘The policies and functioning of the Union’, Title III ‘Internal policies and action’, Chapter I ‘Internal market’, Section 5 ‘Rules on competition’, with Subsection 1 ‘Rules applying to undertakings’.

In Article III-50 of the draft Treaty establishing a Constitution for Europe the words ‘internal market’ were used in the first paragraph instead of ‘common market’. The third paragraph dropped the words ‘The provisions of’, but otherwise the provision was exactly the same as the future Article 101 TFEU (OJ 18.7.2003 C 169/35).

***

The location and wording of Article III-161 of the Treaty establishing a Constitution for Europe was the same as for the corresponding provision of the draft (OJ 16.12.2004 C 310/68–69).

The IGC 2007 did not bother to delete the words ‘The provisions of’ at the beginning of the third paragraph, but otherwise the Constitutional Treaty and Article 101 TFEU are identical.

***

We have seen that Article 101 TFEU is almost exactly the same as the current Article 81 TEC, the only difference being the systematic use of ‘internal market’ instead of the older expression ‘common market’.

But, this picture would be incomplete if we did not venture outside the wording of the Article.

First, according to Article 3(1)(b) TFEU the EU has exclusive competence in ‘the establishing of the competition rules necessary for the functioning of the internal market’.

Second, we mention the revised objectives of the European Union. According to the Lisbon Treaty version of Article 3(3) TEU:

“The Union shall establish an internal market.”

The current Article 3(1)(g) TEC ‘system ensuring that competition in the internal market is not distorted’ was deleted from the objectives of the European Union. Having satisfied the French demands to make competition not an objective, but a means, the governments of the member states agreed on a Protocol (No 27) on the internal market and competition (OJ 9.5.2008 C 115/309):

PROTOCOL (No 27)
ON THE INTERNAL MARKET AND COMPETITION

THE HIGH CONTRACTING PARTIES,

CONSIDERING that the internal market as set out in Article 3 of the Treaty on European Union includes a system ensuring that competition is not distorted,

HAVE AGREED that:

To this end, the Union shall, if necessary, take action under the provisions of the Treaties, including under Article 352 of the Treaty on the Functioning of the European Union.

This protocol shall be annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union.

***

In principle, the IGC 2007 followed the agreements of the IGC 2004, but Annex 1 of the IGC 2007 Mandate (Council document 11218/07), point 3 (page 11) contained the wording of Article 2 about the internal market without the words ‘where competition is free and undistorted’. The text of the draft protocol is on the same page.

The Council’s legal service gave the following opinion about the scope of Article 308 of the EC Treaty (the ‘flexibility clause’), dated 22 June 2007 (Council document 11198/07):

1) It results from the practice of the Institutions that, for the implementation of Article 308 of the EC Treaty ("flexibility clause"), the reference to "the objectives of the Community" has been interpreted widely by the Institutions, in order to cover all purposes and objectives coming within the general framework of the Treaty, and not only to cover those listed in Article 3. A recent example of this practice is the adoption of the Regulation establishing the Agency on Fundamental Rights(1). This corresponds to the case law of the Court of Justice(2): the Court of Justice has said that Article 235 of the EC Treaty (now Article 308) "cannot serve as a basis for widening the scope of Community powers beyond the general framework created by the provisions of the Treaty as a whole and, in particular, by those that define the tasks and the activities of the Community".

2) The fact that, in a future Treaty, Article 3 listing the objectives of the Union would not contain a specific reference to "a system ensuring that competition in the internal market is not distorted" would not, therefore, prevent the EU legislator to act in order:

− to "establish an internal market" (future Article 3, paragraph 3), and

− that the activities of the Union "shall include (…) the adoption of an economic policy which is based (…) on the internal market (…) and conducted in accordance with the principle of an open market economy with free competition" (future Article 4).

3) The future IGC may deem it appropriate, for reasons of transparency, to accompany the text of the future Treaty by a Declaration stating that "with regard to the establishment of the internal market as set out in article 3 TEU, the Conference confirms that the Union will, if necessary, take action under Article 308 to ensure that competition is not distorted".

4) The future IGC might also choose to add a Protocol to the future Treaty, in order to confirm the above. Such a Protocol would be in conformity with the Treaty but legally superfluous.


The footnotes:

(1) Regulation No 168/2007 of 15 February 2007, OJ L53, 22.2.2007, p. 1.

(2) See Opinion of the Court of Justice of 23 March 1996, Opinion 2/94 [1996] ECR, p. I-1759.

***

What has been said about Article 101 TFEU?


United Kingdom

Professor Steve Peers covered the Treaty of Lisbon in a number of Statewatch Analyses. ‘EU Reform Treaty Analysis no. 3.3: Revised text of Part Three, Titles I to VI of the Treaty establishing the European Community (TEC): Internal Market and competition’ (Version 2, 23 October 2007) includes the current Title VI Common rules on competition, taxation and approximation of laws.

Peers highlighted the amendment to Article 81 TEC and TFEU (ToL), to be renumbered Article 101 TFEU in the consolidated version, without comment (page 24).

The analysis 3.3 and other useful Statewatch analyses are available through:

http://www.statewatch.org/euconstitution.htm

***

The Foreign and Commonwealth Office (FCO) offers a convenient source of brief annotations on Lisbon Treaty amendments in ‘A comparative table of the current EC and EU treaties as amended by the Treaty of Lisbon’ (Command Paper 7311, published 21 January 2008). It offers the following comment on Article 101 TFEU, Article 81 TFEU (ToL) in the original Lisbon Treaty (page 11):

“Unchanged from Article 81 TEC.”

The FCO comparative table is available at:

http://www.official-documents.gov.uk/document/cm73/7311/7311.asp

***

The UK House of Commons Library Research Paper 07/86 ‘The Treaty of Lisbon: amendments to the Treaty establishing the European Community’ (published 6 December 2007) discussed competition on page 57 to 60, not without doubts being expressed with regard to the abolition of free and undistorted competition from among the EU’s objectives.

The Library Research Paper 07/86 is available at:

http://www.parliament.uk/commons/lib/research/rp2007/rp07-086.pdf

***

The House of Lords European Union Committee report ‘The Treaty of Lisbon: an impact assessment, Volume I: Report’ (HL Paper 62-I, published 13 March 2008) discussed the internal market and competition on pages 218 and 219.

The main discussion centred around concerns about the removal of ‘free and undistorted competition’ (according to Article I-3(2) of the Constitutional Treaty objectives), but the Committee’s conclusion was the following:

“9.18. We would be concerned if any possible symbolic downgrading were translated into efforts to depart from the principles of free competition that have formed the cornerstone of the internal market. However, Article 51 of the TEU gives equal weight to the Treaty Articles and Protocols and Articles 81–83 of the TEC will remain the same as Articles 101–103 of the TFEU. Therefore, the change does not appear to be significant.”

The report is accessible at:

http://www.publications.parliament.uk/pa/ld200708/ldselect/ldeucom/62/62.pdf

***

Sweden

The consultation paper of the government of Sweden, ‘Lissabonfördraget; Statsrådsberedningen, Departementsserien (Ds), Ds 2007:48’ published 20 December 2007, deals with the internal market on pages 261 to 269, ’22.1 Inre marknaden’. On page 264 the consultation paper describes the Protocol on the internal market and competition (Protokollet om den inre marknaden och konkurrens), and it refers to the opinion of the Council’s legal service (document 11198/07).

The consultation paper ’Lissabonfördraget’ is available at:

http://www.regeringen.se/content/1/c6/09/49/81/107aa077.pdf

***

Finland

The Finnish ratification bill, ‘Hallituksen esitys Eduskunnalle Euroopan unionista tehdyn sopimuksen ja Euroopan yhteisön perustamissopimuksen muuttamisesta tehdyn Lissabonin sopimuksen hyväksymisestä ja laiksi sen lainsäädännön alaan kuuluvien määräysten voimaansaattamisesta’ (HE 23/2008 vp), includes only a short comment on the unchanged nature of Article 81 TFEU (ToL), renumbered Article 101 TFEU (on page 207), but mentions competition among the EU objectives on page 19:

”Perustuslakisopimukseen verrattuna unionin tavoitteita koskevasta määräyksestä on poistettu viittaus siihen, että kilpailu unionin sisämarkkinoilla on vapaata ja vääristymätöntä. SEUT 2 b artiklassa sisämarkkinoiden toimintaa varten tarvittavien kilpailusääntöjen vahvistaminen määritellään kuitenkin jatkossakin unionin yksinomaiseen toimivaltaan kuuluvaksi. Tähän muutokseen liittyen sopimukseen on liitetty kilpailua ja sisämarkkinoita koskeva pöytäkirja, jossa sopimuspuolet katsovat, että SEU 2 artiklassa määritelty tavoite sisämarkkinoiden luomisesta käsittää järjestelmän, jolla taataan, ettei kilpailu vääristy. Sopimuspuolet sopivat, että unioni toteuttaa toimenpiteitä tämän tavoitteen toteuttamiseksi.”

More or less the same factual and non-committal remarks are made on page 132, when Article 2 TEU (ToL), renumbered Article 3 TEU, is dealt with.

The Finnish ratification bill is available at:

http://www.finlex.fi/fi/esitykset/he/2008/20080023.pdf

The Swedish language version of the ratification bill ‘Regeringens proposition till Riksdagen med förslag om godkännande av Lissabonfördraget om ändring av fördraget om Europeiska unionen och fördraget om upprättandet av Europeiska gemenskapen och till lag om sättande i kraft av de bestämmelser i fördraget som hör till området för lagstiftningen’ (RP 23/2008 rd), offers the same brief observation about Article 81 TFEU (ToL), the future Article 101 TFEU, on page 209.

The remarks about the role of competition among the objectives of the EU is on page 19:

”Jämfört med det konstitutionella fördraget har omnämnandet av en inre marknad där det råder fri och icke snedvriden konkurrens strukits från bestämmelsen om unionens mål. Enligt artikel 3 i EUF-fördraget ska unionen dock även i fortsättningen ha exklusiv befogenhet när det gäller fastställandet av de konkurrensregler som är nödvändiga för den inre marknadens funktion. I anslutning till denna ändring åtföljs fördraget av ett protokoll om den inre marknaden och konkurrens där de fördragsslutande parterna beaktar att den inre marknaden enligt definitionen i artikel 2 i EU-fördraget innefattar en ordning som säkerställer att konkurrensen inte snedvrids.
De fördragsslutande parterna enas om att unionen ska vidta åtgärder för detta ändamål.”

The description on page 132 of the Finnish version is found on page 135 of the Swedish one.

The ratification bill in Swedish can be accessed at:

http://www.finlex.fi/sv/esitykset/he/2008/20080023.pdf



Ralf Grahn

Sunday 25 May 2008

EU TFEU: Land, sea and air transport

The EU Treaty of Lisbon continues to make a distinction between rail, road and inland waterway, to which the TFEU Transport Title applies, and sea and air transport, still treated as optional with regard to EU legislation.


***

Article 100 of the Treaty on the Functioning of the European Union (TFEU) is found in the consolidated version of the Treaty on European Union and the Treaty on the Functioning of the European Union, published in the Official Journal of the European Union, OJ 9.5.2008 C 115/87–88:

Part Three ‘Policies and internal actions of the Union’

Title VI TFEU ‘Transport’

Article 100 TFEU
(ex Article 80 TEC)

1. The provisions of this Title shall apply to transport by rail, road and inland waterway.

2. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, may lay down appropriate provisions for sea and air transport. They shall act after consulting the Economic and Social Committee and the Committee of the Regions.

***

In Article 2, point 75 of the Treaty of Lisbon (ToL) the intergovernmental conference (IGC 2007) laid out the specific amendments to Article 80 TEC (OJ 17.12.2007 C 306/68).

75) In Article 80, paragraph 2 shall be replaced by the following:

‘2. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, may lay down appropriate provisions for sea and air transport. They shall act after consulting the Economic and Social Committee and the Committee of the Regions.’.

***

The TFEU table of equivalences tells us that Article 80 TEC first became Article 80 TFEU (ToL), but later renumbered Article 100 TFEU in the consolidated version (OJ 17.12.2007 C 306/210).

***

The current Article 80 of the Treaty establishing the European Community (TEC) is found under Title V ‘Transport’ in the latest consolidated version of the treaties in force (OJ 29.12.2006 C 321 E/73):

Article 80 TEC

1. The provisions of this title shall apply to transport by rail, road and inland waterway.

2. The Council may, acting by a qualified majority, decide whether, to what extent and by what procedure appropriate provisions may be laid down for sea and air transport.

The procedural provisions of Article 71 shall apply.


***

For the sake of a systematic comparison, we look at the Article during the previous treaty reform stages.

First, we turn to the European Convention.

Article III-143 of the draft Treaty establishing a Constitution for Europe looked like this (OJ 18.7.2003 C 169/55):

Article III-143 Draft Constitution

1. This Section shall apply to transport by rail, road and inland waterway.

2. European laws or framework laws may lay down appropriate measures for sea and air transport. They shall be adopted after consultation of the Committee of the Regions and the Economic and Social Committee.

***

Article III-245 of the Treaty establishing a Constitution for Europe adopted the wording of the European Convention without change (OJ 16.12.2004 C 310/108).

***


What has been said about Article 100 TFEU?


United Kingdom

Professor Steve Peers covered the Treaty of Lisbon in a number of Statewatch Analyses. ‘EU Reform Treaty Analysis no. 3.3: Revised text of Part Three, Titles I to VI of the Treaty establishing the European Community (TEC): Internal Market and competition’ (Version 2, 23 October 2007) includes the current Title V Transport.

Peers highlighted the amendment to Article 80 TEC and TFEU (ToL), to be renumbered Article 100 TFEU in the consolidated version, and he added the following comment (page 23):

“In practice, legislation on sea and air transport is already adopted by the co-decisions procedure.”

The analysis 3.3 and other useful Statewatch analyses are available through:

http://www.statewatch.org/euconstitution.htm

***

The Foreign and Commonwealth Office (FCO) offers a convenient source of brief annotations on Lisbon Treaty amendments in ‘A comparative table of the current EC and EU treaties as amended by the Treaty of Lisbon’ (Command Paper 7311, published 21 January 2008). It offers the following comment on Article 100 TFEU, Article 80 TFEU (ToL) in the original Lisbon Treaty (page 11):

“Draws and Article 80 TEC. QMV already applies, co-decision applied to paragraph 2.”

The FCO comparative table is available at:

http://www.official-documents.gov.uk/document/cm73/7311/7311.asp

***

The UK House of Commons Library Research Paper 07/86 ‘The Treaty of Lisbon: amendments to the Treaty establishing the European Community’ (published 6 December 2007) wrapped up Transport in a brief comment on page 56:

“F. Transport

Title V, Articles 70-80 (Constitution Articles III-236 – 245) are on transport and are based largely on Articles 70 – 75 TEC, but with a change in the voting procedure to the OLP with QMV, except for Article 72, which replaces unanimity in the Constitution Article III-237 with a “special legislative procedure”. Other, minor, changes are Article 75(c), which adds the EP to those bodies to be consulted, and Article 78 (Constitution Article III-243), allowing the Article concerning German unification to be repealed after 5 years.

Present Articles 154 – 156 on Trans-European Networks (TENS) have been moved to Title VII and contain only minor amendments.”

The Library Research Paper 07/86 is available at:

http://www.parliament.uk/commons/lib/research/rp2007/rp07-086.pdf

***

The House of Lords European Union Committee report ‘The Treaty of Lisbon: an impact assessment, Volume I: Report’ (HL Paper 62-I, published 13 March 2008) made no explicit reference to Article 100 TFEU.

The report is accessible at:

http://www.publications.parliament.uk/pa/ld200708/ldselect/ldeucom/62/62.pdf

***

Sweden

The consultation paper of the government of Sweden, ‘Lissabonfördraget; Statsrådsberedningen, Departementsserien (Ds), Ds 2007:48’ published 20 December 2007, bundled together transport and trans-European networks under the headline ‘Transporter och transeuropeiska nät’ (page 280 to 282).

The text offers an overview of the coming Title VI ‘Transport’, and it remarks that in practice provisions on air and sea transport are already adopted by co-decision:

”Åtgärder på sjöfarts- respektive luftfartsområdena ska antas i enlighet med det ordinarie lagstiftningsförfarandet (artikel 80.2 i EUF-fördraget). I praktiken antas lagstiftning på områdena redan idag gemensamt av Europaparlamentet och rådet med kvalificerad majoritet.”

The consultation paper ’Lissabonfördraget’ is available at:

http://www.regeringen.se/content/1/c6/09/49/81/107aa077.pdf

***

Finland

The Finnish ratification bill, ‘Hallituksen esitys Eduskunnalle Euroopan unionista tehdyn sopimuksen ja Euroopan yhteisön perustamissopimuksen muuttamisesta tehdyn Lissabonin sopimuksen hyväksymisestä ja laiksi sen lainsäädännön alaan kuuluvien määräysten voimaansaattamisesta’ (HE 23/2008 vp), includes a systematic commentary on the treaty provisions. The explanation on Article 80 TFEU (ToL), renumbered Article 100 TFEU, is one example of this methodical approach (page 206):

”80 artiklan (uusi 100 artikla) 2 kohtaa, joka koskee meri- ja lentoliikenteestä annettavaa säännöstöä, muutetaan siten, että parlamentti ja neuvosto antavat tavallista lainsäätämisjärjestystä noudattaen meri- ja lentoliikennettä koskevat aiheelliset säännökset alueiden komiteaa sekä talous- ja sosiaalikomiteaa kuultuaan. Nykyisen SEY 80 artiklan 2 kohdassa määrätään neuvoston voivan määräenemmistöllä päättää, annetaanko meri- ja lentoliikennettä koskevia aiheellisia säännöksiä sekä missä laajuudessa ja mitä menettelyä noudattaen niitä annetaan, ja että tällöin sovelletaan SEY 71 artiklan määräyksiä menettelystä. SEY 71 artiklassa tarkoitettu menettely vastaa SEUT 80 artiklan 2 kohtaan nyt kirjattavaa menettelyä. SEUT 80 artikla vastaa perustuslakisopimuksen III-245 artiklaa säädösinstrumentin yksilöintiä eurooppalaiksi tai -puitelaiksi lukuun ottamatta.”

The Finnish ratification bill is available at:

http://www.finlex.fi/fi/esitykset/he/2008/20080023.pdf

The Swedish language version of the ratification bill ‘Regeringens proposition till Riksdagen med förslag om godkännande av Lissabonfördraget om ändring av fördraget om Europeiska unionen och fördraget om upprättandet av Europeiska gemenskapen och till lag om sättande i kraft av de bestämmelser i fördraget som hör till området för lagstiftningen’ (RP 23/2008 rd), offers the same observations on page 209:

”Artikel 80.2 (blivande artikel 100), som gäller bestämmelser för sjöfart och luftfart ändras så att parlamentet och rådet i enlighet med det ordinarie lagstiftningsförfarandet får fastställa lämpliga bestämmelser för sjöfart och luftfart efter att ha hört Ekonomiska och sociala kommittén och Regionkommittén. I nuvarande artikel 80.2 i EG-fördraget bestäms att rådet får med kvalificerad majoritet besluta huruvida, i vilken omfattning och på vilket sätt lämpliga bestämmelser ska kunna meddelas för sjöfart och luftfart och att procedurreglerna i artikel 71 ska tillämpas. Det förfarande som avses i artikel 71 i EGfördraget motsvarar det förfarande som nu skrivs in i artikel 80.2 i EUF-fördraget. Artikel 80 i EUF-fördraget motsvarar artikel III- 245 i det konstitutionella fördraget med undantag för att rättsaktsinstrumentet individualiseras som europalag eller ramlag.”

The ratification bill in Swedish can be accessed at:

http://www.finlex.fi/sv/esitykset/he/2008/20080023.pdf

***

The Treaty of Lisbon retains traces of the historical dichotomy between transport in the internal market (by rail, road and inland waterway; first paragraph) and sea and air transport, at least initially more concerned with relations to third countries (second paragraph).



Ralf Grahn