Daily News 14 / 07 / 2020

State aid: Commission recommends restricting aid to companies with links to tax havens

The European Commission has today recommended that Member States do not grant financial support to companies with links to countries that are on the EU's list of non-cooperative tax jurisdictions. Restrictions should also apply to companies that have been convicted of serious financial crimes, including, among others, financial fraud, corruption, non-payment of tax and social security obligations. The aim of today's recommendation is to provide guidance to Member States on how to set conditions to financial support that prevent the misuse of public funds and to strengthen safeguards against tax abuse throughout the EU, in line with EU laws. By coordinating restrictions on financial support, Member States would also prevent mismatches and distortions within the Single Market. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: "We are in an unprecedented situation where exceptional volumes of State aid are granted to undertakings in the context of the coronavirus outbreak. Especially in this context, it is not acceptable that companies benefitting from public support engage in tax avoidance practices involving tax havens. This would be an abuse of national and EU budgets, at the expense of taxpayers and social security systems. Together with Member States, we want to make sure that this does not happen.” Paolo Gentiloni, Commissioner for the Economy, said: “Fairness and solidarity lie at the heart of the EU's recovery efforts. We are all in this crisis together and everyone must pay their fair share of tax so that we can support and not undermine our collective efforts to recover. Those who deliberately bypass tax rules or engage in criminal activity should not benefit from the systems they are trying to circumvent. We must protect our public funds, so that they can truly support honest taxpayers across the EU.” A full press release is available online. (For more information: Arianna Podesta – Tel. +32 229 87024; Daniel Ferrie - Tel. +32 229 86500)

Coronavirus response: Commission welcomes ‘best practices' to provide relief for consumers and businesses

The European Commission has welcomed a list of ‘best practices' agreed by the financial sector, and consumer and business organisations, to help further mitigate the impact of the coronavirus pandemic. It sets out concretely how different market participants can support citizens and businesses throughout the crisis. Today's ‘best practices' cover several issues such as payment moratoria for consumer and business loans, enabling safer cashless payments while ensuring cash payments remain available for those who need them and ensuring loans aimed at mitigating the impact of coronavirus are provided swiftly, and that the fees and interest rates incurred are fair. Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said: “Our goal right now is to make sure that the liquidity taps are kept turned on and that consumers and especially smaller companies can get the financial support they need. I warmly welcome the extensive dialogue that we have had with the European financial sector, and business and consumer representatives. Our fruitful discussions have led to today's ‘best practices' list. I invite all those concerned to make full use of this valuable tool. We will take stock of the situation in September and continue the discussion on how to best ensure continuous flows of credit, as part of the recovery.” Today's ‘best practices' list follows two roundtable meetings facilitated by the Commission with consumer and business representatives, European banks, other lenders, and the insurance sector. The discussions are part of a wider effort by the Commission to increase lending to the real economy, including a banking package in April. The Commission will facilitate a further roundtable in September to take stock of progress and will continue the dialogue with stakeholders to support lending during the recovery. All participants are encouraged to follow these best practices.  (For more information: Daniel Ferrie – Tel.: 32 229 86500; Aikaterini Apostola – Tel.: +32 229 87624)

Postal services: Commission opens consultation on the needs of the EU postal sector

The Commission launched an open public consultation on the Postal Services Directive. The public consultation aims to assess the impact of the Directive and better understand the needs of the postal sector, especially in the light of the growing e-commerce economy. Thierry Breton, Commissioner for the Internal Market, said: “Postal services are a crucial enabler for our economy, allowing to send growing volumes of goods across the world. The growth of e-commerce has led to a rapid transformation of the sector, but nothing has proved its importance more than the recent coronavirus crisis, during which it helped to provide essential goods and services to countless citizens and businesses across the EU. This public consultation will help us to better assess the needs of the sector and ensure it can successfully adapt to these new challenges of our times.” The Postal Services Directive guarantees the postal universal service and ensures a level playing field in the European postal market. In Europe, the sector generates €90 billion per year, which accounts for 0.52% of EU GDP, and employs around 1.8 million people across the EU. The public consultation on the Directive, which was last revised in 2008, will be an opportunity to assess how the postal market has contributed to the objectives of economic and social cohesion, consumer protection, innovation and market integration. Everyone is welcome to respond to the public consultation, including citizens and businesses that use postal services, postal operators, social partners and public authorities. The public consultation questionnaire is available in all EU languages and will be open until 9 November 2020. On the basis of the feedback received and further research, the Commission aims to adopt an evaluation of the Postal Services Directive in 2021.(For more information: Sonya Gospodinova – Tel.: +32 229-66953; Federica Miccoli – Tel.: +32 229-58300)

Aide humanitaire: l'UE annonce une aide de 24 millions d'euros en faveur de l'Ouganda dans le contexte de la pandémie de coronavirus

En 2020, l'UE fournira une aide humanitaire de 24 millions d'euros aux populations les plus vulnérables en Ouganda, et plus particulièrement aux réfugiés et aux communautés qui les accueillent. En outre, l'UE a également octroyé 1 million d'euros aux organisations d'aide dans le pays pour soutenir les mesures de préparation au coronavirus et de contrôle, conformément au plan national de réaction à la pandémie. « L'aide humanitaire fournie par l'UE à l'Ouganda change la vie de nombreux réfugiés qui ont fui le Soudan du Sud et la République démocratique du Congo. Le soutien de l'UE permettra d'apporter une aide alimentaire et sanitaire, de donner accès à l'eau et à l'assainissement et de financer des programmes d'éducation. En ces temps difficiles, nous restons déterminés à maintenir notre aide à l'Ouganda », a déclaré le commissaire chargé de la gestion des crises, Janesz Lenarčič. Les projets humanitaires financés par l'UE en Ouganda s'adaptent également aux nouveaux défis posés par la pandémie de coronavirus. Ainsi, les émissions de radio financées par l'UE sensibilisent la population au coronavirus et à des sujets essentiels, comme la protection de l'enfance. D'autres projets humanitaires fournissent un accès aux soins de santé et prévoient des mesures de contrôle des épidémies et de lutte contre celles-ci. L'aide de l'UE a également permis à plus de 20 000 enfants de bénéficier de programmes d'éducation. Le communiqué de presse est disponible en ligne. (Pour plus d'informations: Balazs Ujvari - Tél.: +32 229 54578; Daniel Puglisi – Tél.: +32 229 69140)

Antitrust: Commission seeks feedback on commitments offered by Aspen to reduce prices for six off-patent cancer medicines by 73% to address Commission's concerns over excessive pricing

The European Commission invites comments from all interested parties on commitments offered by Aspen to address the Commission's concerns over excessive pricing. Aspen proposes to reduce its prices in Europe for six critical cancer medicines by 73% on average. In addition, Aspen proposes to ensure the continued supply of these off-patent medicines for a significant period. Following a formal investigation opened on 15 May 2017, the Commission has serious concerns that Aspen has been abusing its dominant position in numerous national markets by charging excessive prices for critical off-patent cancer medicines. Aspen's practices concern a number of cancer medicines mainly used in the treatment of leukaemia and other haematological cancers. Aspen's behaviour may be in breach of the EU's antitrust rules. The Commission invites all interested parties to submit their views on Aspen's proposed commitments within two months from their publication in the Official Journal. Taking into account all comments received, the Commission will then take a final view as to whether the commitments sufficiently address competition concerns. If this is the case, the Commission may adopt a decision making the proposed commitments legally binding on Aspen under Article 9 of the EU's antitrust Regulation (Council Regulation 1/2003). Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “Pharmaceutical companies often bring innovative medicines to the market and they should be rewarded for that. However, they sometimes also use their dominant position to increase prices of old but critical medicines by several hundred percent without any real justification. The Commission has concerns that Aspen's conduct in this case amounts to excessive pricing by a dominant firm, which is prohibited by EU competition rules. To remove these concerns Aspen proposes to radically reduce its prices and to guarantee the supply of six critical cancer medicines. We now reach out to the stakeholders to hear their views on whether the commitments adequately address our concerns and benefit patients and health budgets across Europe.” The full press release and Questions and Answers are available online. (For more information: Arianna Podesta – Tel. +32 229 87024; Maria Tsoni – Tel.: +32 229 90526)

Antitrust: Commission fines ethylene purchasers €260 million in cartel settlement 

The European Commission has fined Orbia, Clariant and Celanese a total of €260 million for breaching EU antitrust rules. Westlake was not fined as it revealed the cartel to the Commission. The companies took part in a cartel concerning purchases on the ethylene merchant market. They colluded to buy ethylene for the lowest possible price. All four companies acknowledged their involvement in the cartel and agreed to settle the case. Unlike in most cartels where companies conspire to increase their sales prices, the four companies colluded to lower the value of ethylene, to the detriment of ethylene sellers. In particular, the companies coordinated their price negotiation strategies before and during the bilateral “Monthly Contract Price” (MCP), ‘settlement' negotiations with ethylene sellers to push the MCP down to their advantage. They also exchanged price-related information. These practices are prohibited by the EU competition rules. Executive Vice-President of the Commission Margrethe Vestager, in charge of competition policy, said: "This cartel aimed at manipulating the prices which the companies paid for their ethylene purchases. Ethylene is a flammable chemical that's used to make materials, like PVC, that go into many products we use every day. The four companies in the cartel have colluded and exchanged information on purchasing prices which is illegal. The Commission does not tolerate any form of cartels. EU antitrust rules not only prohibit cartels related to coordination of selling prices, but also cartels related to coordination of purchasing prices. This protects the competitive process for inputs." The full press release is available online. (For more information: Arianna Podesta – Tel. +32 229 87024; Maria Tsoni – Tel.: +32 229 90526)

Mergers: Commission clears Lotos' acquisition by PKN Orlen, subject to conditions

The European Commission has approved, under the EU Merger Regulation, the acquisition of Grupa Lotos by PKN Orlen. The approval is conditional on full compliance with a commitments package offered by PKN Orlen. Today's decision follows an in-depth investigation of the proposed merger by the Commission, which combines PKN Orlen and Grupa Lotos (“Lotos”), two large Polish integrated oil and gas companies. Following its investigation, the Commission had concerns that the transaction, as initially notified, would have harmed competition. To address the Commission's concerns, PKN Orlen offered a set of commitments. The Commission found that the combination of divestitures and other commitments would enable the purchasers of the divested businesses, as well as other competitors, to compete effectively with the merged entity in the relevant markets in the future. In the wholesale diesel and gasoline markets in particular, the purchaser of the stake in the refinery will be able to import significant volumes thanks to greater access to infrastructure. Through this combination of refining capacity and import potential, the purchaser will exert a competitive constraint similar to that of Lotos before the transaction. The Commission therefore concluded that the transaction, as modified by the commitments, would no longer raise competition concerns. This decision is conditional upon the full compliance with the commitments. Executive Vice President Margrethe Vestager, in charge of competition policy, said: “Access to fuels at competitive prices is important for businesses and consumers alike. Today, we can approve the proposed acquisition of Lotos by PKN Orlen because the extensive commitments offered by PKN Orlen will ensure that the relevant Polish markets remain open and competitive and that the merger will not lead to higher prices or less choice for fuels and related products for businesses and consumers in Poland and Czechia.” The full press release is available online. (For more information: Arianna Podesta – Tel. +32 229 87024; Maria Tsoni – Tel.: +32 229 90526)

State aid: Commission approves €148 million Danish scheme to compensate companies for damages still suffered due to  coronavirus outbreak

The European Commission has approved under EU State aid rules a DKK 1.1 billion (approximately €148 million) Danish scheme to compensate damages suffered by companies whose activities are still subject to the restrictive measures implemented by the Danish Government to limit the spread of the coronavirus, while the rest of the economy is progressively re-opening. The scheme will be open to companies that are still forbidden to carry out their activities and to suppliers of goods and services for events that have been cancelled, because of these measures. Under the scheme, such companies, which have a documented decline in turnover of more than 35% because of the coronavirus outbreak, will be entitled to compensation for the damage they suffer. This will be applicable for the period between 8 July to 31 August 2020 compared to a reference period before the coronavirus outbreak. In particular, they will receive a compensation in the form of a partial or full coverage of the fixed costs that they continue to bear. The Danish authorities foresee several levels of compensation according to the level of turnover decline. The maximum aid amount per company is DKK 60 million (approximately €8 million). The Danish authorities will carry out ex-post checks to ensure that the compensation does not exceed the actual damage suffered. The public support in excess of the actual damage received by the beneficiaries will have to be paid back to the Danish State. The Commission found that the scheme is in line with Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or specific sectors for the damages directly caused by exceptional occurrences, such as the coronavirus outbreak. The Commission found that, in spite of the reopening of the Danish society, the scheme will compensate damages that are still directly linked to the coronavirus outbreak. It also found that the measure is proportionate, as the envisaged compensation does not exceed what is necessary to make good the damage. The Commission therefore concluded that the scheme is in line with EU State aid rules. More information on the actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.57930 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved. (For more information: Arianna Podesta – Tel. +32 229 87024; Maria Tsoni – Tel.: +32 229 90526)

Liste des points prévus à l'ordre du jour des prochaines réunions de la Commission

Veuillez noter que ces informations sont données sous réserve de modifications.

Eurostat: communiqués de presse