Author Description

The Report on Competition Policy is published annually by the European Commission in response to the request of the European Parliament made by a Resolution of 7 June 1971. This Report, which is published in conjunction with the General Report on the Activities of the European Union, is designed to give a general view of the competition policy followed during the past year. European competition policy in 1995 was marked by a sharp increase in the number of cases submitted to the Commission and in the number of decisions taken. Looking at the whole range of areas covered (restrictive agreements and concerted practices, mergers and state aid), the number of new cases submitted to the Commission was more than one third up on the previous year. A large part of this increase is due to the fact that three new member countries joined the European Union on 1 January 1995. However, the figures also show that businesses are increasingly aware that their playing field is Europe as a whole. In addition, the pressure of competition gives firms an incentive to cooperate or merge so as to remain competitive. Competition policy plays a key role in creating an environment that is favourable to businesses, this being crucial to lasting growth in the European economy and to job creation. Another crucial competition policy objective is consumer protection. The single market must first and foremost serve people. It must be ensured, through strict application of the competition rules, that consumers have freedom of choice between quality products at competitive prices. Let me illustrate Commission efforts in pursuit of these two competition policy objectives in 1995 by highlighting a few of the most significant examples. The Commission took action against business practices that block parallel imports and prevent consumers from taking advantage of price differences between Member States. With the same end in view, the new Regulation on motor vehicle distribution in Europe, while allowing