EU Regulators On The Application Of Competition Law During Ukraine Conflict

The European Commission, the EU national competition authorities, as well as the EFTA Surveillance Authority (‘European Competition Network’ or ‘ECN‘), have published a joint statement on the application of competition law in the context of the Russian invasion of Ukraine.

In its statement, the ECN acknowledges that the current crisis conditions may trigger the need for companies to address severe disruptions caused by the impact of the war and/or of sanctions in the single market.

This may include cooperation to, for example, (i) ensure the purchase, supply, and fair distribution of scarce products and inputs; or (ii) mitigate severe economic consequences including those arising from compliance with sanctions imposed by the EU.

This type of cooperation would likely either not amount to a restriction of competition, or would generate efficiencies that would most likely outweigh any such restriction.

In this context, the ECN stated that it will not actively intervene against strictly necessary and temporary initiatives specifically targeted at avoiding the severe disruptions caused by the impact of the war and/or of sanctions in the single market.

Companies can reach out to the members of the ECN at any time for informal guidance regarding the compatibility of their initiatives with EU/European Economic Area competition law.

At the same time, the ECN will not hesitate to take action against companies taking advantage of the current situation by entering into cartels or abusing their dominant position.

For more information, please see Commission’s website here