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Competition and trade law: Commission exempts industry scheme because of its environmental benefits - TVs and VCRs

United Kingdom
15/05/1998
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The European Commission has authorised an agreement between sixteen major manufacturers of televisions and video recorders, on the basis of its envisaged environmental benefits. Under the scheme, the manufacturers have undertaken that, by 1 January 2000, the TVs and VCRs which they sell will consume no more than 10W when in standby mode and that the average power consumption of all TVs and video recorders which they sell will be no more than 6W in standby mode. The voluntary commitment aims to significantly reduce electricity consumption thereby reducing CO2 emissions, resource use and global warming.

Such an agreement to act in a co-ordinated way is a restriction of competition contrary to EU law. However, the Commission can exempt an agreement from the rules where it meets certain conditions. In this case, the Commission has decided to make use of provisions which allow for exemptions where an agreement contributes to technical and economic progress and its benefits are shared with consumers. Such an exemption is only possible where a deal does not eliminate competition in respect of a substantial part of the products in question and does not impose restrictions which are not indispensable to the attainment of these objectives.

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