Commissioner for Competition
Encyclopedia
The Commissioner for Competition is the member responsible for competition of the European Commission
. The current commissioner is Joaquín Almunia
(S&D
) who is also a Commission Vice President
.
, company mergers
, cartel
s, state aid, and anti-trust 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 is notable in affecting global companies. For example, notably preventing the merge of two US companies, General Electric
and Honeywell
, in 2001. 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.
, previously the Finance Commissioner, took on the competition portfolio under the second Barroso Commission
in 2010. His appointment was welcomed by competition lawyers as someone well qualified and experienced. 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
. He has also come out in favour of the idea of a European Monetary Fund
to deal with defaulting member states. It is not expected that his tenure will see a relaxing of enforcement from Kroes' strict regime.
' hearing at the European Parliament
, MEP
s 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 Sony
– BMG, against Apple Inc. regarding iTunes
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 cooperation 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." 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
. 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."
Kroes holds a strong belief in free market principles and was tough with offenders. By the time term term as Competition Commissioner ended, she had completed most major cases.
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;
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, only the second time it had blocked just two US companies and only the 15th merger it had blocked ever since it started work. On 1 May 2004 Monti oversaw a radical change in the Competition powers of the Commission concerning anti-trust regulation, merger controls, licensing agreements and air transport.
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
. The current commissioner is Joaquín Almunia
Joaquín Almunia
Joaquín Almunia Amann is a Spanish politician and prominent member of the European Commission, currently responsible for Competition under the second mandate of President Barroso. He was previously responsible for Economic and Monetary Affairs in Barroso's previous mandate...
(S&D
Progressive Alliance of Socialists and Democrats
The Progressive Alliance of Socialists and Democrats is the social-democratic political group in the European Parliament, formed by MEPs of the Party of European Socialists and allied centre-left parties. The group dates its ancestry via various names back to the beginning of the European...
) who is also a Commission Vice President
Vice-President of the European Commission
A Vice President of the European Commission is a post in the European Commission usually occupied by more than one member of the Commission. Since the 2009 Lisbon Treaty entered into force, one of these is ex-officio the High Representative of the Union for Foreign Affairs and Security Policy,...
.
Responsibilities
The portfolio has responsibility for such matters as commercial competitionCompetition regulator
A competition regulator is a government agency, typically a statutory authority, sometimes called an economic regulator, which regulates and enforces competition laws, and may sometimes also enforce consumer protection laws...
, company mergers
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
, cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
s, state aid, and anti-trust law. The position became the sole merger authority for the European Economic Area
European Economic Area
The European Economic Area was established on 1 January 1994 following an agreement between the member states of the European Free Trade Association and the European Community, later the European Union . Specifically, it allows Iceland, Liechtenstein and Norway to participate in the EU's Internal...
in September 1990.
The Competition Commissioner is one of the most powerful positions in the Commission and is notable in affecting global companies. For example, notably preventing the merge of two US companies, General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
and Honeywell
Honeywell
Honeywell International, Inc. is a major conglomerate company that produces a variety of consumer products, engineering services, and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments....
, in 2001. 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
Forbes Magazine's List of The World's 100 Most Powerful Women
Starting in 2004, Forbes magazine has made a list of the 100 most powerful women in the world. It is edited by editor Mary Ellen Egan, and based on visibility and economic impact...
; she held position 59.
Joaquín Almunia (incumbent)
Joaquín AlmuniaJoaquín Almunia
Joaquín Almunia Amann is a Spanish politician and prominent member of the European Commission, currently responsible for Competition under the second mandate of President Barroso. He was previously responsible for Economic and Monetary Affairs in Barroso's previous mandate...
, previously the Finance Commissioner, took on the competition portfolio under the second Barroso Commission
Barroso Commission
The Barroso Commission is the European Commission that has been in office since 22 November 2004 and is due to serve until 2014. Its president is José Manuel Barroso, who presides over 26 other commissioners...
in 2010. His appointment was welcomed by competition lawyers as someone well qualified and experienced. 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
Google
Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...
. He has also come out in favour of the idea of a European Monetary Fund
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
to deal with defaulting member states. It is not expected that his tenure will see a relaxing of enforcement from Kroes' strict regime.
Neelie Kroes (2004–2010)
During Neelie KroesNeelie Kroes
Neelie Kroes is a Dutch politician of the People's Party for Freedom and Democracy . She served as a Member of the House of Representatives from 3 August 1971 until 28 December 1977 when she became State Secretary for Transport, Public Works and Water Management from 28 December 1977 until 11...
' hearing at the European Parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...
, MEP
Member of the European Parliament
A Member of the European Parliament is a person who has been elected to the European Parliament. The name of MEPs differ in different languages, with terms such as europarliamentarian or eurodeputy being common in Romance language-speaking areas.When the European Parliament was first established,...
s 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 Sony
Sony Music Entertainment
Sony Music Entertainment ' is the second-largest global recorded music company of the "big four" record companies and is controlled by Sony Corporation of America, the United States subsidiary of Japan's Sony Corporation....
– BMG, against Apple Inc. regarding iTunes
ITunes
iTunes is a media player computer program, used for playing, downloading, and organizing digital music and video files on desktop computers. It can also manage contents on iPod, iPhone, iPod Touch and iPad....
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 cooperation 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." In September 2007, the Court of First Instance
Court of First Instance
The General Court is a jurisdictional instance of the Court of Justice of the European Union. From its inception on 1 January 1989 to 30 November 2009, it was known as the Court of First Instance .-Competence:...
(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
European Court of Justice
The Court can sit in plenary session, as a Grand Chamber of 13 judges, or in chambers of three or five judges. Plenary sitting are now very rare, and the court mostly sits in chambers of three or five judges...
. 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."
Kroes holds a strong belief in free market principles and was tough with offenders. By the time term term as Competition Commissioner ended, she had completed most major cases.
Mario Monti (1999–2004)
Mario Monti
Mario Monti is an Italian economist and academic who is Prime Minister of Italy, as well as Minister of Economy and Finance, since November 2011. Monti served as a European Commissioner from 1995 to 2004, with responsibility for the Internal Market, Services, Customs and Taxation from 1995 to 1999...
is particularly notable for his ruling during the GE-Honeywell merger attempt in 2001. General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
, a US company, sought to acquire another US company, Honeywell
Honeywell
Honeywell International, Inc. is a major conglomerate company that produces a variety of consumer products, engineering services, and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments....
. This merger had been approved by US authorities, however Monti, with the backing of the rest of the Commission, rejected the merger;
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, only the second time it had blocked just two US companies and only the 15th merger it had blocked ever since it started work. On 1 May 2004 Monti oversaw a radical change in the Competition powers of the Commission concerning anti-trust regulation, merger controls, licensing agreements and air transport.
List of commissioners
| Name | Country | Period | Commission | |
|---|---|---|---|---|
| 1 | Hans von der Groeben Hans von der Groeben Hans von der Groeben was a German diplomat, scientist and journalist and member of the European Commission.Von der Groeben was born in Langheim near Rastenburg, East Prussia.... |
 West Germany |
1958–1967 | Hallstein Commission Hallstein Commission The Hallstein Commission is the European Commission that held office from 7 January 1958 to 30 June 1967. Its President was Walter Hallstein and held two separate mandates.-Work:... |
| 2 | Maan Sassen Maan Sassen Maan Sassen was a Dutch politician.In 1946, he was elected to the Dutch House of Representatives for the Katholieke Volkspartij . He served as Minister responsible for the Dutch Colonies and European Commissioner .... |
 Netherlands |
1967–1971 | Rey Commission Rey Commission The Rey Commission is the European Commission that held office from 2 July 1967 to 30 June 1970. Its President was Jean Rey.-Work:It was the first Commission of the merged European Communities. It was the successor to the Hallstein Commission and was succeeded by the Malfatti Commission... |
| 3 | Albert Borschette |  Luxembourg |
1971–1972 1972–1973 1973–1976 |
Malfatti Commission Malfatti Commission The Malfatti Commission is the European Commission that held office from 1 July 1970 to 21 March 1972. Its President was Franco Maria Malfatti.- Work :... Mansholt Commission Mansholt Commission The Mansholt Commission is the European Commission that held office from 22 March 1972 to 5 January 1973. Its President was Sicco Mansholt.- Work :It was the successor to the Malfatti Commission and was succeeded by the Ortoli Commission... Ortoli Commission Ortoli Commission The Ortoli Commission is the European Commission that held office from 6 January 1973 to 5 January 1977. Its President was François-Xavier Ortoli.-Work:... |
| 4 | Raymond Vouel | Luxembourg |
1976–1981 | Jenkins Commission Jenkins Commission (EU) The Jenkins Commission is the European Commission that held office from 6 January 1977 to 6 January 1981. Its President was Roy Jenkins.-Work:It was the successor to the Ortoli Commission and was succeeded by the Thorn Commission... |
| 5 | Frans Andriessen Frans Andriessen Franciscus Henricus Johannes Joseph Andriessen is a senior Dutch politician.In 1967 he was first elected to the House of Representatives for the Katholieke Volkspartij . From 1971 to 1977 he was leader of the KVP. He served as Minister of Finance and European Commissioner for Trade, Competition... |
Netherlands |
1981–1985 | Thorn Commission Thorn Commission The Thorn Commission was the European Commission that held office from 6 January 1981 until 5 January 1985. Its President was Gaston Thorn.-Work:... |
| 6 | Peter Sutherland Peter Sutherland Peter Denis Sutherland, KCMG is an Irish international businessman and former Attorney General of Ireland, associated with the Fine Gael party . He is a barrister by profession, and is also Senior Counsel at the Irish Bar... |
 Republic of Ireland |
1985–1989 | Delors Commission Delors Commission The Delors Commission was the administration of Jacques Delors, the 8th President of the European Commission. Delors presided over the European Commission for three terms The Delors Commission was the administration of Jacques Delors, the 8th President of the European Commission. Delors presided... I |
| 7 | Leon Brittan |  United Kingdom |
1989–1993 | Delors Commission Delors Commission The Delors Commission was the administration of Jacques Delors, the 8th President of the European Commission. Delors presided over the European Commission for three terms The Delors Commission was the administration of Jacques Delors, the 8th President of the European Commission. Delors presided... II |
| 8 | Karel Van Miert Karel Van Miert Karel Van Miert was a socialist Flemish politician.He was born in Oud-Turnhout. He studied at Ghent University and gained a degree in diplomatic sciences. In 1976 he became adjunct-national secretary of the – at that time – unitary Belgian socialist party... |
 Belgium |
1993–1994 1995–1999 |
Delors Commission Delors Commission The Delors Commission was the administration of Jacques Delors, the 8th President of the European Commission. Delors presided over the European Commission for three terms The Delors Commission was the administration of Jacques Delors, the 8th President of the European Commission. Delors presided... III Santer Commission Santer Commission The Santer Commission was the European Commission in office between 23 January 1995 and 15 March 1999. The administration was led by Jacques Santer .... |
| 9 | Mario Monti Mario Monti Mario Monti is an Italian economist and academic who is Prime Minister of Italy, as well as Minister of Economy and Finance, since November 2011. Monti served as a European Commissioner from 1995 to 2004, with responsibility for the Internal Market, Services, Customs and Taxation from 1995 to 1999... |
 Italy |
1999–2004 | Prodi Commission Prodi Commission The Prodi Commission was the European Commission in office between 1999 and 2004. The administration was led by former Italian Prime Minister Romano Prodi.-History:... |
| 10 | Neelie Kroes Neelie Kroes Neelie Kroes is a Dutch politician of the People's Party for Freedom and Democracy . She served as a Member of the House of Representatives from 3 August 1971 until 28 December 1977 when she became State Secretary for Transport, Public Works and Water Management from 28 December 1977 until 11... |
Netherlands |
2004–2010 | Barroso Commission Barroso Commission The Barroso Commission is the European Commission that has been in office since 22 November 2004 and is due to serve until 2014. Its president is José Manuel Barroso, who presides over 26 other commissioners... I |
| 11 | Joaquín Almunia Joaquín Almunia Joaquín Almunia Amann is a Spanish politician and prominent member of the European Commission, currently responsible for Competition under the second mandate of President Barroso. He was previously responsible for Economic and Monetary Affairs in Barroso's previous mandate... |
 Spain |
2010–present | Barroso Commission Barroso Commission The Barroso Commission is the European Commission that has been in office since 22 November 2004 and is due to serve until 2014. Its president is José Manuel Barroso, who presides over 26 other commissioners... II |
See also
- Directorate-General for CompetitionDirectorate-General for Competition (European Commission)The Directorate-General for Competition is a Directorate-General of the European Commission, located in Brussels, Belgium. The DG Competition is responsible for establishing and implementing a coherent competition policy for the European Union. The DG Competition has a dual role in antitrust...
- European Union competition lawEuropean Union competition lawEuropean Union competition law arose out of the desire to ensure that the efforts of government could not be distorted by corporations abusing their market power. Hence under the treaties are provisions to ensure that free competition prevails, rather than cartels and monopolies sharing out markets...
- European Union v. Microsoft