Competition: Two competition co-operation agreements approved between the European Union and the United States and Canada

The Council and the Commission have approved the agreement with the United States on the application of positive comity principles in the enforcement of their competition laws. The agreement covers situations in which:

• anti-competitive activities are occurring in the whole or in a substantial part of the territory of one of the parties;
• such activities are adversely affecting the interests of the other party; and
• the activities in question are impermissible under the competition laws of the party in the territory in which the activities are occurring.

The agreement sets out the procedure whereby the competition authorities of the EU can ask the competition authorities of the US to take action against anti-competitive activities which affect European companies in the US and vice-versa. It also allows competition authorities to request dawn raids by their counterparts across the Atlantic on companies suspected of breaking the law. The agreement also establishes a presumption that in certain circumstances the competition authorities of one party will defer or suspend the application of its own enforcement activities in favour of those of the other party. Mergers do not come within the scope of the agreement.

The European Commission also approved plans to improve co-operation on competition matters between the EU and Canada. The Commission proposal would cover monopolies, cartels and illegal business practices by multi-nationals and mergers. It would provide for a reciprocal exchange of information regarding certain ongoing investigations, but would not involve delaying or deferring activities.

The Canadian proposal differs from the US agreement in that it will involve only partial positive comity principles. The Canadian proposal would merely require the respective competition authorities to notify cases under investigation which may affect important interests of the other party. The EU and Canada can also co-ordinate their enforcement activities and provide each other with assistance during inquiries. They are obliged to act under the confidentiality obligation on any information provided by the other side.