International Highlights
Between September 3 -5, 2007, Ms Neelie Kroes, EC Competition Commissioner, visited Beijing where she held high-level ministerial meetings on competition policy, and on enhancing cooperation between the EC and the Chinese competition authorities. She discussed the Chinese and European economies, and the role of competition policy in enhancing their competitiveness. During her visit, Ms. Kroes had high-level ministerial meetings with the Ministry of Commerce, and the State Administration of Industry and Commerce as well as with senior academics, and representatives of the European and Chinese business communities. The visit coincided with the adoption of the first comprehensive Anti Monopoly Law by the Standing Committee of the National People's Congress of the People's Republic of China (see above). The visit took place in the framework of the EU-China Competition Policy Dialogue, and is the latest in a range of EU-China contacts to discuss competition policy matters that began in 2003. Ms Neelie Kroes said: “I congratulate the Chinese authorities for the adoption of the Anti-Monopoly Law. I am very impressed with the work of the Chinese legislature, which has taken this important step towards an effective competition regime. The implementation of a transparent and non-discriminatory competition framework will benefit the Chinese economy and Chinese consumers. I hope China will derive the same economic benefits as we have in the EU, where a sound competition policy has helped to create open markets and increased consumer welfare”.
On August 23, the EC confirmed that it sent a Statement of Objections (SO) to Rambus on July 30, 2007. The SO outlines the EC's preliminary view that Rambus has infringed EC Treaty rules on abuse of a dominant position (Article 82) by claiming unreasonable royalties for the use of certain patents for “Dynamic Random Access Memory” chips (DRAMS) subsequent to a so-called "patent ambush". In particular, the SO outlines the EC's preliminary view that Rambus engaged in intentional deceptive conduct in the context of the standard-setting process, for example by not disclosing the existence of the patents which it later claimed were relevant to the adopted standard - otherwise known as a "patent ambush". The EC's preliminary view is that "[W]ithout its 'patent ambush', Rambus would not have been able to charge the royalty rates it currently does", and concludes that "the appropriate remedy to such an abuse would be that Rambus charge a reasonable and non-discriminatory royalty rate, the precise amount of which should be determined having regard to all the circumstances of the case". Rambus has nine weeks to reply to the SO, after which it will have the right to be heard. If the preliminary views expressed in the SO are confirmed, the EC may require Rambus to cease the abuse, and may impose a fine.
On August 6, the EC announced that it would lodge an appeal before the Court of Justice of the European Communities against the judgment of the Court of First Instance of July 11, 2007, ordering the EC to compensate Schneider Electric for the damage sustained as a result of the infringement of its right to be heard during the investigation into its planned acquisition of Legrand in 2001. The EC considers that "[T]he conditions under which the Community’s non-contractual liability is incurred are not met in this case, and disputes the finding that the infringement of Schneider Electric’s rights of defence constituted a 'sufficiently serious breach', as is required by the case law". Further, the EC will argue that no causal link can be established between the fault allegedly committed ,and the main head of damages identified by the Court of First Instance. The EC has two months from the date of service of the judgment in which to lodge its appeal before the Court of Justice.
On August 20, the Canadian Competition Bureau, and the Commerce Commission of New Zealand completed successful bilateral talks aimed at strengthening co-operation between the agencies to combat international cartels. “Cartels are one of the biggest threats to competition in New Zealand," said Paula Rebstock, Chair of the Commerce Commission. "In many cases they are being led by overseas companies with a clear impact on New Zealand markets, inflating the costs of key inputs and placing a drag on our international competitiveness. We are looking forward to working more closely with Canada in this important area". “A concerted international effort is needed to combat cartels in today’s global economy,” said Sheridan Scott, Canadian Commissioner of Competition. “Consumers and businesses increasingly depend on products that originate from supply chains that span across national borders. As a result, criminal cartels from around the world can cause damage to our economy and can drive up prices for Canadians.”
On August 14, the Canadian Competition Bureau and the Australian Competition and Consumer Commission (ACCC) announced the conclusion of successful bilateral talks aimed at strengthening co-operation between the agencies. The two competition authorities agreed to attack mass-marketing fraud together, in partnership with other jurisdictions. The announcement comes at the end of a fact-finding and information-sharing trip to Australia by Ms Sheridan Scott, Canadian Commissioner of Competition. "These were productive meetings based on the sharing of best practices and identifying areas for further co-operation," ACCC Chairman, Mr. Graeme Samuel. "The Competition Bureau has always understood the importance of exchanging ideas with its international colleagues and this has been an excellent opportunity to deepen and broaden that work," Ms Scott said. Mr. Samuel and Ms Scott agreed that in today's globalized economy, international dialogue among competition authorities is ever more important.
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