Measures recommended by the Competition Council

Measures recommended by the Competition Council

The measures recommend by the Competition Council as to preserve the market balance in the context of the crisis caused by SARS-CoV-2 coronavirus

On 23.03.2020, the European Commission and the National Competition Authorities issued a joint statement on how to apply the competition rules during the crisis caused by SAR-CoV-2 coronavirus.

 

In this regard, it was noted that the competition rules are flexible enough to take into account changes in market circumstances, as a result of the crisis caused by SAR-CoV-2 coronavirus, as well as that this extraordinary situation may trigger the need for companies to cooperate in order to ensure the supply and fair distribution of scarce products to all consumers.

 

At the same time, it was underlined the importance of ensuring that products considered essential to protect the health of consumers in the current situation (e.g. face masks, sanitizing gel) remain available at competitive prices.

 

On 26.03.2020, the Competition Council issued a press release recommending for companies to implement measures in order to maintain the market balance in the current context.

 

These measures include:

 

• the possibility for traders to limit the quantities of essential products purchased by one person/on a single tax receipt in order to reduce the risk of speculation and to enable more consumers to obtain supplies;

 

• the possibility for traders to modify the operating schedule;

 

• the possibility for companies to coordinate the freight transports and home deliveries for high risk consumers, in order to increase the efficiency of the supply with core products and to ensure a balanced distribution of those products;

 

• the possibility for producers to fix maximum prices for their products as to limit unjustified increases of the prices at distribution level;

 

• the possibility for online trading platforms to monitor the fluctuations of the prices of essential products and to adopt a limitation policy of unjustified increases or

 

• the possibility of suspending the sale of certain products if abuse is suspected.

 

The Competition Council underlined that this crisis caused by SAR-CoV-2 coronavirus must not be a reason to increase prices without an objective justification, to exchange sensitive information, to exclude competitors from the market or to abuse of a dominant position.