Home Europe EEA Joint Committee Decision of the EEA Joint Committee No 188/2023 of 5 July 20...
Date: 21-Mar-2024 Category: Not Applicable State: Union Government Country: Europe

Decision of the EEA Joint Committee No 188/2023 of 5 July 2023 amending Annex XIV (Competition) to the EEA Agreement [2024/813]

Issued by EEA Joint Committee · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The EEA Joint Committee Decision No 188/2023 amends Annex XIV (Competition) to the EEA Agreement.
  • It incorporates Commission Regulation (EU) 2022/720 on vertical agreements and concerted practices into the EEA Agreement.
  • It repeals Commission Regulation (EU) No 330/2010, which expired on 31 May 2022.

Key Changes

  • Commission Regulation (EU) 2022/720 of 10 May 2022 replaces Commission Regulation (EU) No 330/2010 in Annex XIV to the EEA Agreement.
  • Article 6(1) and 6(2) of Regulation (EU) 2022/720 are adapted to include references to the EFTA States agreement.
  • A new section is added to Article 7, outlining the EFTA Surveillance Authority's powers to declare the Regulation inapplicable in EFTA States where parallel networks of similar vertical agreements cover more than 50% of a relevant market.
  • The EFTA Surveillance Authority can issue recommendations to EFTA States regarding the application of the regulation, and a process is defined for the acceptance or rejection of these recommendations.
  • Cooperation between the Commission and the EFTA Surveillance Authority is established for markets where parallel networks of similar vertical agreements cover more than 50% of the relevant market within the EEA Agreement territory.
  • The decision entered into force on 6 July 2023 and applies from 1 June 2022.

Impact Analysis

Businesses operating in the EEA

  • Legal departments should familiarize themselves with the new provisions and adapt internal compliance programs accordingly.

EFTA States

  • EFTA States should be prepared to cooperate with the Commission and the EFTA Surveillance Authority in cases where parallel networks of similar vertical agreements cover more than 50% of a relevant market.

EFTA Surveillance Authority

  • The EFTA Surveillance Authority must cooperate with the Commission to address issues related to parallel networks of similar vertical agreements.

European Commission

  • The Commission must cooperate with the EFTA Surveillance Authority to address issues related to parallel networks of similar vertical agreements.

Key Entities Referenced

EEA Joint Committee: The body responsible for adopting decisions related to the EEA Agreement. Commission Regulation (EU) 2022/720: Regulation on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices. Commission Regulation (EU) No 330/2010: Regulation that expired on 31 May 2022 and is repealed by this decision. EFTA Surveillance Authority: The body responsible for monitoring and enforcing competition rules in the EFTA States. European Commission: The executive branch of the European Union, responsible for proposing legislation and enforcing EU law. EEA Agreement: Agreement on the European Economic Area. Treaty on the Functioning of the European Union: One of the primary treaties of the European Union.
Official Source Record View Original Source →
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Official Journal EN of the European Union L series 2024/813 21.3.2024 DECISION OF THE EEA JOINT COMMITTEE No 188/2023 of 5 July 2023 amending Annex XIV (Competition) to the EEA Agreement [2024/813] THE EEA JOINT COMMITTEE, Having regard to the Agreement on the European Economic Area (“the EEA Agreement”), and in particular Article 98 thereof, Whereas: (1) Commission Regulation (EU) 2022/720 of 10 May 2022on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices(1) is to be incorporated into the EEA Agreement. (2) Commission Regulation (EU) No 330/2010(2), which has been incorporated into the EEA Agreement, expired on 31 May 2022and is therefore to be repealed under the Agreement. (3) Annex XIV to the EEA Agreement should therefore be amended accordingly, HAS ADOPTED THIS DECISION: Article 1 The text of point 2 (Commission Regulation (EU) No 330/2010) of Annex XIV to the EEA Agreement is replaced by the following: ‘32022 R 0720: Commission Regulation (EU) 2022/720 of 10 May 2022on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices (OJ L 134, 11.5.2022, p. 4). The provisions of the Regulation shall, for the purposes of this Agreement, be read with the following adaptations: (a) In Article 6(1) the following words “or the corresponding provision in Article 29(1) of Chapter II of Part II of Protocol 4 to the Agreement between the EFTA States on the Establishment of a Surveillance Authority and a Court of Justice” shall be inserted after the words “pursuant to Article 29(1) of Regulation (EC) No 1/2003”. (b) In Article 6(2) the following words “or the corresponding provision in Article 29(2) of Chapter II of Part II of Protocol 4 to the Agreement between the EFTA States on the Establishment of a Surveillance Authority and a Court of Justice” shall be inserted after the words “Article 29(2) of Regulation (EC) No 1/2003”. (c) The following shall be added at the end of Article 7: “Pursuant to the provisions of the Agreement between the EFTA States on the Establishment of a Surveillance Authority and a Court of Justice, the EFTA Surveillance Authority may by recommendation declare that, where parallel networks of similar vertical agreements cover more than 50% of a relevant market in the EFTA States, this Regulation shall not apply to vertical agreements containing specific restraints relating to that market. A recommendation pursuant to paragraph 1 shall be addressed to the EFTA State or EFTA States comprising the relevant market in question. The Commission shall be informed of the issuance of such a recommendation. (1) OJ L 134, 11.5.2022, p. 4. (2) OJ L 102, 23.4.2010, p. 1. ELI: http://data.europa.eu/eli/dec/2024/813/oj 1/2EN OJ L, 21.3.2024 Within three months from the issuance of a recommendation pursuant to paragraph 1, all EFTA States addressees shall notify the EFTA Surveillance Authority whether they accept the recommendation. If the three months deadline expires without a response, this shall be understood as an acceptance by the EFTA State not responding in time. If an EFTA State addressee of the recommendation either accepts the recommendation or does not respond in time, a legal obligation under the Agreement to implement the recommendation within three months from its issuance shall be bestowed upon it. If within the three months deadline, an EFTA State addressee notifies the EFTA Surveillance Authority that it does not accept its recommendation, the EFTA Surveillance Authority shall notify the Commission of this response. Should the Commission disagree with the position of the EFTA State in question, Article 92(2) of the Agreement shall apply. The EFTA Surveillance Authority and the Commission shall exchange information and consult each other on the application of this provision. Where parallel networks of similar vertical agreements cover more than 50% of a relevant market within the territory of the EEA Agreement, the two surveillance authorities can initiate cooperation with the aim of adopting separate measures. If the two surveillance authorities agree on a relevant market and the appropriateness of adopting a measure pursuant to this provision, the Commission shall adopt a regulation addressed to the EU Member States and the EFTA Surveillance Authority a recommendation of corresponding substance to the EFTA State or EFTA States comprising the relevant market in question.”.’ Article 2 The text of Regulation (EU) 2022/720 in the Icelandic and Norwegian languages, to be published in the EEA Supplement to the Official Journal of the European Union, shall be authentic. Article 3 This Decision shall enter into force on 6 July 2023, provided that all the notifications under Article 103(1) of the EEA Agreement have been made*. This Decision shall apply from 1 June 2022. Article 4 This Decision shall be published in the EEA Section of, and in the EEA Supplement to, the Official Journal of the European Union. Done at Brussels, 5 July 2023. For the EEA Joint Committee The President Pascal SCHAFHAUSER * No constitutional requirements indicated. 2/2 ELI: http://data.europa.eu/eli/dec/2024/813/oj

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