Europe is looking to tighten up competition regulations
European Union regulators are seeking feedback from member states about the possibility of introducing a new legislative power to fill in gaps in competition law and investigate and, if necessary, demand changes to how business are run, even when there is no suggestion that competition rules have been broken.
The plan demonstrates a desire to bulk up the European Commission's antitrust powers, and comes in the aftermath of a lengthy battle with tech giant Google which critics have said resulted in little lasting change.
Margrethe Vestager, who is in charge of competition policy at the EU Commission, said the proposal was to keep competition rules up to the pace of an ever-changing world.
"Our rules have an inbuilt flexibility which allows us to deal with a broad range of anti-competitive conduct across markets. We see, however, that there are certain structural risks for competition, such as tipping markets, which are not addressed by the current rules," she explained.
"We are seeking the views of stakeholders to explore the need for a possible new competition tool that would allow addressing such structural competition problems, in a timely and effective manner ensuring fair and competitive markets across the economy."
Tech sector giants seem to have been a particular target for Commission President Ursula von der Leyen and her team since they took over their roles at the end of last year, and even before she had started her role, Vestager made it clear to a committee of members of the European Parliament where her ambitions for change lay.
"As global competition gets tougher we'll need to work harder to preserve a level playing field," she said, adding: "You're right to say fines are not doing the trick and fines are not enough."
Ironically, the initiative the EU is suggesting is similar to one introduced three years ago by the Competition and Markets Authority in Britain, a country that left the EU at the start of the year and is currently in the process of trying to negotiate a deal to cover future trade arrangements with the bloc.
Particular areas of concern include the growth of dominant market players who act as gatekeepers for their sector, keeping out rivals. The consultation process will run until Sept 8 and any resultant legislation will be introduced before the end of the year.
In related news, the Financial Times reports that Brussels is also seeking to gain new powers to intervene in and potentially block the takeovers of European companies by organizations judged to have had unfair support from foreign governments.
The proposal is only at a draft stage at the moment but could potentially have significant implications on the involvement and investment of Chinese businesses in Europe.
