European Commissioner for Competition

Last updated

European Commissioner
for Competition
Flag of the European Union.svg
Flag of the EU
Ribera EC Portrait 2024.jpg
Incumbent
Teresa Ribera
since 1 December 2024
Member ofthe European Commission
Reports to President of the European Commission
Term length 5 years
Formation7 January 1958;66 years ago (1958-01-07)
First holder Hans von der Groeben

The Commissioner for Competition is the member of the European Commission responsible for competition. The current commissioner is Margrethe Vestager (ALDE).

Contents

Responsibilities

The portfolio has responsibility for such matters as commercial competition, company mergers, cartels, state aid, and antitrust law. The position became the sole merger authority for the European Economic Area in September 1990.

The Competition Commissioner is one of the most powerful positions in the commission, and indeed the world, and is notable in affecting global regulatory practices in a phenomenon known as the Brussels effect. [1] For example, preventing the merger of two US companies, General Electric and Honeywell, in 2001. [2] In 2007, Neelie Kroes (then-Competition Commissioner) was the only Commissioner to make Forbes Magazine's List of The World's 100 Most Powerful Women; she held position 59. [3]

Past commissioners

Mario Monti (1999–2004)

Mario Monti is particularly notable for his ruling during the GE-Honeywell merger attempt in 2001. General Electric, a US company, sought to acquire another US company, Honeywell. This merger had been approved by US authorities, however Monti, with the backing of the rest of the commission, rejected the merger; [2]

The merger between GE and Honeywell, as it was notified, would have severely reduced competition in the aerospace industry and resulted ultimately in higher prices for customers, particularly airlines. However, there were ways of eliminating these concerns and allowing the merger to proceed. I regret that the companies were not able to agree on a solution that would have met the Commission's competition concerns.

Rather than be blocked from the European market, the merger was abandoned. This was the first time that a merger between two US companies had been blocked solely by European authorities, [4] only the second time it had blocked just two US companies and only the 15th merger it had blocked ever since it started work. [2] On 1 May 2004 Monti oversaw a radical change in the Competition powers of the Commission concerning antitrust regulation, merger controls, licensing agreements and air transport. [5]

Neelie Kroes (2004–10)

During Neelie Kroes' hearing at the European Parliament, MEPs expressed concern about whether Ms Kroes had a sufficiently detailed grasp of certain specific subjects, but was approved as part of the Commission in 2004.

Since then she states that she promotes a fair and free business environment, achieving sustainable economic growth and higher employment. The commission has been involved in a number of high-profile cases fighting anticompetitive behaviour; such as the case against the merger of SonyBMG, against Apple Inc. regarding iTunes [6] and the ongoing case against Microsoft.

The latter has been an ongoing dispute on a number of issues, in April 2007 Microsoft became the first company to refuse to comply with the Commissions rulings, in response Commissioner Kroes is looking at more harsher methods to gain the co-operation of companies; "We have never, ever before encountered a company that has refused to comply with commission decisions ... We learned we may have to look for a more effective remedy." [7] In September 2007, the Court of First Instance (EU's second highest court) upheld the commission's decision to fine Microsoft 497 million euro and its order for to Microsoft for it to share its information setting what the Commission described as an "important precedent". Kroes stated that "Today's court ruling…shows that the Commission was right to take its decision, and right to take firm action to enforce that decision". Either party may appeal to the European Court of Justice. [8] In response to the ruling the US Justice Departments top antitrust official, Thomas Barnett, criticised the ruling which sparked a response from Kroes stating that "It is totally unacceptable that a representative of the US administration criticises an independent court of law outside its jurisdiction ... It is absolutely not on. The European Commission does not pass judgement on rulings by US courts and we expect the same degree of respect from US authorities for rulings by EU courts." [9]

Kroes holds a strong belief in free market principles and was tough with offenders. By the time her term as Competition Commissioner ended, she had completed most major cases. [10]

Joaquín Almunia (2010–14)

Joaquín Almunia, previously the Finance Commissioner, took on the competition portfolio under the second Barroso Commission in 2010 and was expected to have a tenure similar to Kroes' stringent run. [10] His appointment was welcomed by competition lawyers as someone well qualified and experienced. [10] He also impressed Parliament at his hearing and early on in his work has had to deal with whether or not to pursue action against Google. [11] He has also come out in favour of the idea of a European Monetary Fund to deal with defaulting member states. [12]

Margrethe Vestager (since 2014)

List of commissioners

No.PictureCommissioner for CompetitionTook officeLeft officeTime in officePartyEuropeanCountryCommission
1
HansvonderGroben1965.jpg
Groeben, Hans Hans von der Groeben
(1907–2005)
7 January 19582 July 19679 years, 176 days Independent   Independent Germany, WestFlag of Germany.svg  West Germany Hallstein
2
Maan Sassen 1968 (1).jpg
Sassen, Maan Maan Sassen
(1911–1995)
30 June 196730 June 19703 years, 0 days KVP   Independent Flag of the Netherlands.svg  Netherlands Rey
3
Borschette 1970 (cropped).png
Borschette, Albert Albert Borschette
(1920–1976)
1 July 197020 July 19766 years, 19 days Independent   Independent Flag of Luxembourg.svg  Luxembourg Malfatti
Mansholt
Ortoli
4
Raymond Vouel 1977 (cropped).jpg
Vouel, Raymond Raymond Vouel
(1923–1987)
21 July 19766 January 19814 years, 170 days LSAP   PES Flag of Luxembourg.svg  Luxembourg Ortoli
Jenkins
5
Frans Andriessen 1979 (1).jpg
Andriessen, Frans Frans Andriessen
(1929–2019)
6 January 19815 January 19853 years, 365 days KVP   EPP Flag of the Netherlands.svg  Netherlands Thorn
6
Peter Sutherland (1985).jpg
Sutherland, Peter Peter Sutherland
(1946–2018)
7 January 19855 January 19894 years, 0 days Fine Gael   EPP Flag of Ireland.svg  Ireland Delors
7
Leon Brittan (1996) 02.jpg
Brittan, Leon Leon Brittan
(1939–2015)
6 January 19895 January 19933 years, 365 days Conservative   ED Flag of the United Kingdom.svg  United Kingdom Delors
8
Karel van Miert (SP, Belgie), Bestanddeelnr 933-5684.jpg
Miert, Karel Karel Van Miert
(1942–2009)
6 January 199313 September 19996 years, 250 days sp.a   PES Flag of Belgium (civil).svg  Belgium Delors
Santer
9
Mario Monti - Festival Economia 2013 (cropped 2).JPG
Monti, Mario Mario Monti
(born 1943)
15 September 199930 October 20045 years, 45 days Independent   Independent Flag of Italy.svg  Italy Prodi
10
Neelie Kroes (2018).jpg
Kroes, Neelie Neelie Kroes
(born 1941)
22 November 20049 February 20105 years, 79 days VVD   ELDR Flag of the Netherlands.svg  Netherlands Barroso I
11
Joaquin Almunia Mercosul.jpg
Almunia, Joaquín Joaquín Almunia
(born 1948)
9 February 20101 November 20144 years, 265 days PSOE   PES Flag of Spain.svg  Spain Barroso II
12
Vestager 520 2012-04-16.jpg
Vestager, Margrethe Margrethe Vestager
(born 1968)
1 November 201430 November 202410 years, 29 days Social Liberals   ALDE Flag of Denmark.svg  Denmark Juncker
Von der Leyen I
12
Ribera EC Portrait 2024.jpg
Ribera, Teresa Teresa Ribera
(born 1969)
30 November 2024Incumbent14 days PSOE   PES Flag of Spain.svg  Spain Von der Leyen II

See also

Related Research Articles

<span class="mw-page-title-main">United States antitrust law</span> American legal system intended to promote competition among businesses

In the United States, antitrust law is a collection of mostly federal laws that govern the conduct and organization of businesses in order to promote economic competition and prevent unjustified monopolies. The three main U.S. antitrust statutes are the Sherman Act of 1890, the Clayton Act of 1914, and the Federal Trade Commission Act of 1914. These acts serve three major functions. First, Section 1 of the Sherman Act prohibits price fixing and the operation of cartels, and prohibits other collusive practices that unreasonably restrain trade. Second, Section 7 of the Clayton Act restricts the mergers and acquisitions of organizations that may substantially lessen competition or tend to create a monopoly. Third, Section 2 of the Sherman Act prohibits monopolization.

<span class="mw-page-title-main">Federal Trade Commission</span> United States government agency

The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction over federal civil antitrust law enforcement with the Department of Justice Antitrust Division. The agency is headquartered in the Federal Trade Commission Building in Washington, DC.

<span class="mw-page-title-main">European Union competition law</span> Economic law of the European Union

In the European Union, competition law promotes the maintenance of competition within the European Single Market by regulating anti-competitive conduct by companies to ensure that they do not create cartels and monopolies that would damage the interests of society.

<span class="mw-page-title-main">Mario Monti</span> Italian economist and politician (born 1943)

Mario Monti is an Italian politician, economist and academic who served as the Prime Minister of Italy from 2011 to 2013, leading a technocratic government in the wake of the Italian debt crisis.

Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust law, anti-monopoly law, and trade practices law; the act of pushing for antitrust measures or attacking monopolistic companies is commonly known as trust busting.

<span class="mw-page-title-main">Neelie Kroes</span> Dutch politician

Neelie Kroes is a retired Dutch politician of the People's Party for Freedom and Democracy (VVD) and businessperson who served as European Commissioner from 22 November 2004 to 1 November 2014.

<span class="mw-page-title-main">Barroso Commission</span> European Commission from 2004 to 2014

The Barroso Commission was the European Commission in office from 22 November 2004 until 31 October 2014. Its president was José Durão Barroso, who presided over 27 other commissioners. On 16 September 2009 Barroso was re-elected by the European Parliament for a further five years and his Commission was approved to take office on 9 February 2010.

DIGITALEUROPE is a European trade association that represents the digital technology industry. It is led by the Director General.

<span class="mw-page-title-main">Margrethe Vestager</span> Danish politician (born 1968)

Margrethe Vestager is a Danish politician currently serving as Executive Vice President of the European Commission for A Europe Fit for the Digital Age since December 2019 and European Commissioner for Competition since 2014. Vestager is a member of the Danish Social Liberal Party, and of the Alliance of Liberals and Democrats for Europe Party (ALDE) on the European level.

<i>Microsoft Corp. v. Commission</i> Legal case

Microsoft Corp. v. Commission is a case brought by the European Commission of the European Union (EU) against Microsoft for abuse of its dominant position in the market. It started as a complaint from Sun Microsystems over Microsoft's licensing practices in 1993, and eventually resulted in the EU ordering Microsoft to divulge certain information about its server products and release a version of Microsoft Windows without Windows Media Player. The European Commission especially focused on the interoperability issue.

<span class="mw-page-title-main">Directorate-General for Competition</span>

The Directorate-General for Competition is a Directorate-General of the European Commission, located in Brussels. The DG Competition employs around 850 officials, as well as a number of seconded national officials, among other from national competition authorities. It is responsible for establishing and implementing competition policy for the European Union. DG Competition has a dual role in antitrust enforcement: an investigative role and a decision-making role. The current Director-General is Olivier Guersent.

<span class="mw-page-title-main">Executive Vice President of the European Commission for A Europe Fit for the Digital Age</span> Member of the EU Commission

The Executive Vice President of the European Commission for A Europe Fit for the Digital Age is an Executive Vice President of the European Commission responsible for media and information issues such as telecoms and IT. The current officeholder is Margrethe Vestager since December 2019.

European Union merger law is a part of the law of the European Union. It is charged with regulating mergers between two or more entities in a corporate structure. This institution has jurisdiction over concentrations that might or might not impede competition. Although mergers must comply with policies and regulations set by the commission; certain mergers are exempt if they promote consumer welfare. Mergers that fail to comply with the common market may be blocked. It is part of competition law and is designed to ensure that firms do not acquire such a degree of market power on the free market so as to harm the interests of consumers, the economy and society as a whole. Specifically, the level of control may lead to higher prices, less innovation and production.

<i>Advanced Micro Devices, Inc. v. Intel Corp.</i> Private antitrust lawsuit

AMD v. Intel was a private antitrust lawsuit, filed in the United States by Advanced Micro Devices ("AMD") against Intel Corporation in June 2005.

Microsoft has been involved in numerous high-profile legal matters that involved litigation over the history of the company, including cases against the United States, the European Union, and competitors.

<span class="mw-page-title-main">AGC Glass Europe</span> Glass manufacturer in Belgium

AGC Glass Europe is an international glass manufacturing group based in Louvain-la-Neuve, Belgium, and the European branch of the AGC Inc. Group.

Since 2010, the European Union has investigated several antitrust complaints against Google alleging abuses of its dominant position in breach of the EU's competition laws. Three complaints have resulted in formal charges against Google: those relating to Google Shopping, the Android operating system and to Google AdSense. Google has been found guilty of antitrust breaches in the three cases and has been fined over €8 billion. In 2020, the European Union has also launched a full investigation of Google's proposed acquisition of the fitness tracker and wearable health company Fitbit, under the EU Merger Regulation. The operation was eventually cleared on 17 December 2020 subject to conditions.

<span class="mw-page-title-main">Digital Markets Act</span> European Union regulation on digital platforms

The Digital Markets Act (DMA) is an EU regulation that aims to make the digital economy fairer and more contestable. The regulation entered into force on 1 November 2022 and became applicable, for the most part, on 2 May 2023.

On January 18, 2022, Microsoft announced its intent to acquire Activision Blizzard for $68.7 billion. The acquisition was completed on October 13, 2023, with its total cost amounting to $75.4 billion. Under the terms of the agreement, Microsoft brought Activision Blizzard under its Microsoft Gaming business unit as a sibling division to Xbox Game Studios and ZeniMax Media. With it, Microsoft gained ownership of several franchises under Activision, Blizzard Entertainment, and King, including Call of Duty, Crash Bandicoot, Spyro, Warcraft, StarCraft, Diablo, Overwatch, and Candy Crush. As of 2023, the acquisition is the largest video game acquisition by transaction value in history.

References

  1. Lungescu, Oana (23 July 2004). "Examining the EU executive". BBC News. Retrieved 18 September 2007.
  2. 1 2 3 The Commission prohibits GE's acquisition of Honeywell europa.eu
  3. 100 Most Powerful Women Archived 4 April 2008 at the Wayback Machine Forbes
  4. Honeywell CEO's job reported on line after takeover is rejected money.cnn.com
  5. The EU gets new competition powers for the 21st century Archived 28 February 2008 at the Wayback Machine ec.europa.eu
  6. Brussels Accuses iTunes of Violating Competition Rules spiegel.de
  7. Microsoft dispute a lesson, EU says seattletimes.nwsource.com
  8. Microsoft case sets precedent, says Brussels EU observer
  9. Spongenberg, Helena (20 September 2007) US remarks on Microsoft ruling 'unacceptable', says Kroes, EU Observer
  10. 1 2 3 Who’s who in the new Commission, Financial Times November 2009
  11. Accusations will test new commissioner, Financial Times
  12. EU’s Almunia Says EMF Would Be a Long-Term Solution (Update1) [ dead link ] Business Week