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Commission investigates practices of Czech railway incumbent #ČeskDráhy in passenger transport

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railway-1559384Competition drives prices down and service quality up. This is what we need in railway passenger transport, especially when we're serious about cutting our carbon emissions. We need to take a close look at České Dráhy's (CD) business practices to make sure they do not push out competitors to the detriment of passengers, said Competition Policy Commissioner Margrethe Vestager.

ČD is the main railway operator in the Czech Republic and until 2011 it was the only rail company active on the Prague-Ostrava route. After the market entries of competing rail passenger companies RegioJet in 2011 and LEO Express in 2012 on the Prague–Ostrava route, ČD significantly decreased the prices it charged to passengers on the route. The Commission of course welcomes vigorous price competition to the benefit of passengers. However, the Commission has concerns that ČD may have charged prices that are so low that it could not cover the costs of the service. Such practices can hinder competitors from remaining in the market to the detriment of passengers.

Following a complaint, the Commission carried out inspections at the premises of ČD in April 2016. The opening of proceedings does not prejudge the outcome of the investigation; it means that the Commission will treat the case as a matter of priority.

Background on antitrust investigations

Article 102 Treaty on the Functioning of the European Union prohibits the abuse of a dominant market position which may affect trade between EU member states. Such abuse may include imposing unfair purchase or selling prices or other unfair trading conditions.

The implementation of these provisions is defined in the Antitrust Regulation (Council Regulation No 1/2003), which can be applied by the Commission and by the national competition authorities of member states.

The Commission has informed ČD and the competition authorities of the member states that it has opened proceedings in this case. The initiation of proceedings by the Commission relieves the national competition authorities of their competence to apply EU competition rules to the practices concerned.

There is no legal deadline to complete inquiries into anti-competitive conduct. The duration of an antitrust investigation depends on a number of factors, including the complexity of the case, the extent to which the undertaking concerned co-operates with the Commission and the exercise of the rights of defense.

EU

Amid France-Turkey row, UK calls on NATO allies to defend free speech

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Britain’s Foreign Secretary Dominic Raab called on NATO allies to stand shoulder-to-shoulder on values of tolerance and free speech, in a veiled rebuke to Turkey which has been calling for a boycott of French goods, writes Estelle Shirbon.

Turkish President Tayyip Erdogan has urged Turks to stop buying French goods and has accused France of pursuing an anti-Islam agenda. Britain, France and Turkey are all NATO members.

Erdogan is one of several leaders in the Muslim world angry with France over its response to the murder of teacher Samuel Paty, who showed pupils cartoons of the Prophet Mohammad as part of a lesson on free speech.

“The UK stands in solidarity with France and the French people in the wake of the appalling murder of Samuel Paty,” Raab said in a statement. “Terrorism can never and should never be justified.

“NATO allies and the wider international community must stand shoulder-to-shoulder on the fundamental values of tolerance and free speech, and we should never give terrorists the gift of dividing us.”

Paty, a teacher at a state-run school in the far outskirts of Paris, was beheaded on 16 October by a man of Chechen origin. The teacher had been criticised by some in the local community for showing his pupils the cartoons because Muslims view images of the prophet as blasphemous.

The French government, backed by large numbers of citizens, saw the beheading as an attack on free speech and said they would defend the right to display the cartoons.

President Emmanuel Macron called Paty a hero and pledged to fight what he described as Islamic separatism, saying it was threatening to take over some Muslim communities in France.

The reaction to Paty’s murder has caused widespread anger in Muslim countries, where there have been anti-French demonstrations and calls for boycott. France has warned its citizens in several Muslim-majority countries to take extra security precautions.

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EU

Customs Union: Commission proposes new ‘Single Window' to modernize and streamline customs controls, facilitate trade and improve co-operation

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The European Commission has proposed a new initiative that will make it easier for different authorities involved in goods clearance to exchange electronic information submitted by traders, who will be able to submit the information required for import or export of goods only once. The so-called 'EU Single Window Environment for Customs' aims to enhance co-operation and co-ordination between different authorities, in order to facilitate the automatic verification of non-customs formalities for goods entering or leaving the EU.

The Single Window aims to digitalize and streamline processes, so that businesses will ultimately no longer have to submit documents to several authorities through different portals. The proposal is the first concrete deliverable of the recently adopted Action Plan on taking the Customs Union to the next level.

It launches an ambitious project to modernize border controls over the coming decade, in order to facilitate trade, improve safety and compliance checks, and reduce the administrative burden for companies. Economy Comissioner Paolo Gentiloni said: “Digitalization, globalization and the changing nature of trade present both risks and opportunities when it comes to goods crossing the EU's borders.

"To rise to these challenges, customs and other competent authorities must act as one, with a more holistic approach to the many checks and procedures needed for smooth and safe trade. Today's proposal is the first step towards a fully paperless and integrated customs environment and better cooperation between all authorities at our external borders. I urge all member states to play their part in making it a true success story.”

The proposal, the press release, the Q&A and the factsheet are available online.

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coronavirus

Merkel plans circuit-break lockdown as German virus cases surge

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Chancellor Angela Merkel pressed regional leaders on Wednesday (28 October) to agree to a partial lockdown in Germany which would see restaurants and bars closed but keep schools open, a draft document seen by Reuters said, write and

The drastic measures, to take effect from 4 November, are aimed at curbing the spread of the coronavirus in Europe’s biggest economy as the number of new cases hit a record high.

Under the planned new restrictions people would only be able to go out with members of their own and one other household. Fitness studios, discos and cinemas would close, as would theatres, opera houses and concert venues.

Restaurants would only be allowed to offer takeaways, the document said. Shops could remain open if they implement hygiene measures and limit customer numbers.

Merkel will hold a virtual conference with the country’s 16 state premiers later to try to agree the nationwide rules and ditch a confusing patchwork of regional measures.

Almost all regions of Germany face an exponential increase in infection rates, said the document to be discussed, and local health authorities can no longer trace all infections.

“The aim is to interrupt the dynamic of the infection fast so no far-reaching limits on personal contact and economic activity are needed over the Christmas period,” it said.

Germany was widely praised for keeping infection and death rates below those of many of its neighbours in the first phase of the crisis but is now in the midst of a second wave. Cases rose by 14,964 to 464,239 in the last 24 hours, the Robert Koch institute for infectious diseases said on Wednesday.

Deaths jumped by 85 to 10,183, fuelling fears about the health system after Merkel warned on Tuesday it could hit breaking point if infections continue to spiral.

“If we wait until intensive care is full, it is too late,” Health Minister Jens Spahn, who last week tested positive for the virus, told broadcaster SWR.

The government has long insisted it wants to avoid a second blanket lockdown after an initial one this year hit economic growth, with the economy shrinking by a record 9.7% in the second quarter.

While economists expect a rebound for the July-Sept period, they warn that a further lockdown could wipe out growth in the last quarter. Third quarter data is due on 30 October.

Under the plans, the government aims to provide aid to firms hit by closures, including the cultural event sectors.

Only necessary overnight stays would be allowed, according to the document. Brothels, swimming pools, beauty and tattoo studios would close but physiotherapists and hairdressers could stay open. The steps would run until the end of November but are subject to review.

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