EU antitrust regulators gave the green light on Monday, March 23, for suppliers to coordinate distribution of scarce products to cope with the coronavirus outbreak without fear of breaching cartel rules, but warned against price gouging.
The move by the European Competition Network (ECN), made up of the European Commission and national competition agencies in the 27-country bloc, came after Britain eased its competition laws to allow supermarkets work together and even ration products.
The Greek antitrust agency last week also cited the virus pandemic for loosening rules governing deals between manufacturers and distributors, while the German cartel office announced extensive cooperation would be allowed due to the present circumstances.
The ECN stated it was aware of the social and economic consequences of the crisis.
“This extraordinary situation may trigger the need for companies to cooperate in order to ensure the supply and fair distribution of scarce products to all consumers,” it said.
“In the current circumstances, the ECN will not actively intervene against necessary and temporary measures put in place in order to avoid a shortage of supply.”
The body, however, warned against companies trying to maximize profits from sought-after products such as face masks and sanitizing gel. It stated it would not hesitate to take action against companies taking advantage of the situation by abusing their dominant position.
Full Content:
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
EU Extends Support for Farms and Fisheries Amid Market Disruptions
May 5, 2024 by
CPI
Sony and Apollo Bid $26 Billion for Paramount Acquisition
May 5, 2024 by
CPI
Goldman Sachs Resolves Decade-Old Metal-Rigging Class Action Lawsuit
May 5, 2024 by
CPI
Italian Antitrust Ruling Puts Halt on Intesa Sanpaolo’s Fintech Ambitions
May 5, 2024 by
CPI
Google Antitrust Case: Closing Arguments Conclude
May 5, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI