June 14, 2024


The Legal System

The Revised Informal Guidance Regime Brings Little to the Table - If Any

The Revised Informal Guidance Regime Brings Little to the Table – If Any

Last 7 days, the European Fee adopted an current model of its Informal Assistance Detect (“the IGN”), the mechanism that will allow companies to search for clarity regarding the compliance of unique pursuits with EU levels of competition law. The compound of the IGN is animated by “advice letters”, informal documents meant to give authorized certainty to undertakings experiencing novel or unresolved questions that simply cannot be answered by means of recourse to present methods, these kinds of as scenario regulation of the Union Courts or Commission suggestions. The Recognize replaces its previous counterpart, which was issued after the entry into power of Regulation 1/2003. This quick piece evaluates irrespective of whether the updated Recognize provides about significant dissimilarities. As the title indicates, it is quite difficult to argue that it does.



As identified, the modernization of European levels of competition regulation observed the discontinuation of the notification procedure, in accordance to which, undertakings had been expected to notify their meant functions to the Fee. After examination, the Fee would in convert give the undertaking with a damaging clearance conclusion, transforming the provisional validity of a follow into official validity. On the other hand, Union enlargement and the completion of the solitary market place in the 1990s closely increased the workload of the Commission, prompting it to depend on fast and casual strategies to provide assurances to firms. From this background, the comfort letter was born.

Since Regulation 1/2003 abolishes the notification treatment, undertakings essentially relied on existing steering, in the form of decisional follow, recommendations, and circumstance legislation, to self-evaluate the compatibility of their actions with competitors law. Back again in the working day, numerous commentators lamented the diminished prospect for the Fee to situation casual steerage. Some, like Cortese, (inaccurately) speculated that non-infringement conclusions enshrined below Short article 10 of the Regulation could establish fruitful. As a substitute, the Commission opted for adopting a very simple Notice, less than the auspices of which only these ventures increasing really novel level of competition law thoughts would be gained.

The observe report of the aged Discover has been practically nothing shorter of abysmal. As the Commission alone concedes, because 2004, number of undertakings approached it to obtain assistance letters, and none succeeded. The key rationale powering the disappointment is the truth that assistance letters represented an “all-decline, no-obtain” predicament. In particular, the Detect required a number of conditions to be content for the Fee to take into account issuing a direction letter – which furnished minimal value to its recipient due to a absence of binding authorized effects.


Unique Distinctive but Very same?

How does the revised Informal Steering Observe fare in alleviating the deficiencies of its expired version? In line with the older Discover, the IGN sets out a amount of demanding requirements that undertakings want to fulfill in purchase to be eligible for a guidance letter. In other terms, satisfying these problems only opens the route in the direction of an application for the letter, not its reception. Fundamentally, there are two this kind of problems: a genuinely novel levels of competition legislation question that keep on being unanswered by existing kinds of guidance, and a constructive preliminary evaluation by the Fee with regards to the soundness of the application.

The next criterion determines no matter if it is legitimate to offer assistance on the software of Articles 101 and 102 TFEU to the settlement or unilateral observe in question. It depends on the analysis of a plethora of more sub-requirements, together with:

  • The Commission’s interest in offering guidance, which refers to the probable existence of added worth to be derived from clarifying the application of the regulation by a assistance letter. The Fee decides this additional benefit to legal certainty by thinking of the financial relevance of the goods and companies anxious by the action, whether or not the exercise is in line with its enforcement priorities or Union curiosity, the magnitude of investments accompanying the action, and no matter if it expects the activity to arise regularly all through the EU.
  • Lis pendens, which signifies that in cases the place the contents of the novel dilemma (or identical concerns) are the topic to proceedings just before the Union Courts, Member Point out courts, or a nationwide opposition authority.

There are other questionable things of the IGN that did not bear any transformation in any respect. For instance, there however is a need to present detailed information for the envisaged agreement/practice, and the Fee will get to preserve that data for any upcoming proceedings. Additionally, in conditions in which undertakings deal with to conquer the over hurdles and get a direction letter, the assistance contained therein is conditional on the factual conditions presented.

What’s more, the Fee emphasizes that direction letters issued as a result of the IGN continue to be a mere element of the in general “self-evaluation bundle” they confer no rights on undertakings and develop no binding drive.

Lastly, the IGN preserves the will need for a concern to conform to the enforcement priorities of the Commission. [1] The reasoning powering this rule is to stop the oblique resurrection of comfort and ease letters. This criterion lowers the likelihood of an application becoming manufactured. Due to the fact undertakings will need to provide in-depth information and facts on their real or prospective enterprise practices, the large swath of discretion accorded to the Fee with regard to designating its enforcement priorities endangers the prospects of getting a steering letter. [2]

It is not hard to envisage that in such a situation, undertakings will truly feel as if they correctly incriminate by themselves, specially thinking about that the Fee is at freedom to open up infringement proceedings under Regulation 1/2003, centered on or relying on the data offered by the enterprise. The Commission’s liberty to do so has been lengthy verified in cases like BVGD and Diamanthandel.


In Search of a Drop of Adjust

Even though the IGN mostly reflects the point out of enjoy of the aged system, it also brings about small variations. Nevertheless, these improvements are primarily cosmetic and mirror the set up circumstance law.

As proven, the Fee may possibly not be estopped from relying on the contents of a request for a steering letter to initiate further proceedings. The new IGN qualifies this statement by including that, in cases in which an undertaking depends on a steerage letter, in very good religion, to go ahead with an arrangement or apply, the Commission will not impose monetary penalties.

At 1st glance, this modification may well appear to be like a welcomed growth. Even so, the actuality is extra complicated and mostly illusory. 1st, consider that pecuniary penalties constitute basically the direct prices an undertaking faces in case of a successful prosecution. There are also oblique expenditures involved when the Commission strikes down a complicated net of agreements or a especially costly enterprise undertaking.

As quite a few Advocate-Typical thoughts remarked, the guidance provided by the Fee may perhaps lead undertakings to derive sensible expectations that need to have to be accounted for, must the authority want to switch back again on an earlier blessing, especially as the interval concerning the letter and an investigation extends more.

Next, the commitment that bona fide undertakings will not incur a good will come with its possess clarification. Accordingly, if the factual aspects presented by the undertaking that gave rise to a steerage letter materially modify, the undertaking are not able to be taken to have acted in great religion. Even even though the IGN does not define “materials adjust”, specifics can be teased out from situation legislation. For occasion, Langnese – Iglo, confirms that the entry of new rivals or a (slight) alteration in the current market framework (this kind of as an improve/decrease of marketplace shares) qualify as variations sizeable sufficient to justify the retraction of a direction letter. If a eco-friendly-lighted arrangement turns out to be a thriving business and generates current market shares for the enterprise, it would as a result be rather straightforward for the Commission to invoke that content transform has happened, and the endeavor experienced as a result not acted in superior religion. In my view, such a hazard by yourself transforms the IGN system into an efficiency offence in disguise. [3]

Aside from the previously mentioned details, a accurate novelty does present itself in the IGN: the inclusion of “Union curiosity” in the conditions for analyzing whether or not to concern a assistance letter. Place briefly, alongside with its enforcement priorities, the Fee will be empowered to also consider the value of an envisaged agreement (these types of as a non-fully useful joint enterprise) vis-à-vis projects of typical European fascination. The prospect of elevating the pandemic-induced Short-term Framework of comfort letters into a normalized framework has been permeating antitrust conversations currently. In that regard, the provision of a consolation letter to GAIA-X, a consortium of European technological know-how corporations working on details interoperability and cybersecurity, looks like a frontrunner of an emerging pattern.



The revised informal steerage observe brings minor included worth. A great deal of the doc continues to be faithful to its former counterpart, and the revisions that do stick out tend to be both recitations of current case regulation or incapable of inducing extraordinary transform.

Although the express inclusion of a Union desire criterion in the problems for issuing a steering letter is truly novel, its concrete consequences may leave something to be desired. All in all, it would be rather stunning not to see yet another footnote in a Fee report years from now, lamenting that undertakings are unwilling to use the IGN. The underlying reason would be relatively distinct: steering letters continue to signify an all-reduction, no-obtain problem.



[1] Back in the days of Regulation 17 (changed by Regulation 1/2003), the Fee would at times near a request for a ease and comfort letter by assuring the endeavor that its carry out does not constitute an enforcement priority (“soreness letter”).

[2] Although the extent of discretionary flexibility the Commission enjoys is not very easily discernible from the circumstance law. For instance, in Beef Sector Development Society, there is an implicit argument that, even in moments of disaster, the Commission can not shy absent from investigating tactics that are probably anticompetitive by item. One more instance in this regard is BP v Fee. Perplexingly, in individuals scenarios involving prospective “by object” arrangements, exactly where it could be argued that the Commission is “compelled” to problem a assistance letter, it would have no incentive to do so – due to the fact it can initiate proceedings to examine a probable infringement rather.

[3] There is also controversy regarding irrespective of whether the Fee would be in a position to basically change its lawful evaluation of an settlement/apply to override an before direction letter. The situation regulation solutions that question in the optimistic, diminishing the small value supplied by the IGN even even more.