Thomson Reuters solution to facilitate switching does not work, according to Almunia

In his speech presented at European Competition and Consumer Day in Copenhagen, Joaquín Almunia described how the European Commission seeks to create the best conditions to promote growth in the global marketplace. By way of example, Almunia cited the EC’s probe of Thomson Reuters’ possible abuse of dominance. Thomson Reuters had limited the use of its identification code RICs, thereby constraining consumers’ ability to switch to rival financial data providers.

Almunia stated that Thomson Reuters offered a solution to facilitate switching. However, the EC had market tested the solution and found it to be unsuccessful. “We want to make sure that undue restrictions on the provision of financial information do not hamper the healthy development of financial services,” Almunia notes, and thus as regards Thomson Reuters, “[i]f no effective solution can be agreed upon, then we will have to draw the adequate conclusions.”

Full content: EC Press Release

Related content: Coordination and Lock-In: Competition with Switching Costs and Network Effects (Joseph Farrell, University of California at Berkeley, U.S. Federal Trade Commission)