The European Commission has carried out unannounced inspections of companies in Germany involved in the supply, transmission and storage of natural gas.
Inspections were conducted earlier this week (Tuesday, March 29) as several companies may have violated EU competition rules that prohibit the abuse of a dominant position.
Officials of the European Commission were accompanied by their counterparts from the German national competition authority.
Under Article 102 of the Treaty on the Functioning of the European Union, abuse may include unfair purchase or selling prices or the limitation of production, markets or technical development to the prejudice of consumers.
Potential abuses may also include the application of dissimilar conditions of equivalent transactions with other trading parties, and thus placing them at a competitive disadvantage.
The commission explained that unannounced inspections are a preliminary investigatory step into suspected anti-competitive practices:
“The fact that the commission carries out such inspections does not mean that the companies are guilty of anti-competitive behaviour, nor does it prejudge the outcome of the investigation itself.”
Investigated companies hold the rights of defence concerning anti-trust proceedings by the European Commission, particularly the right to be heard. The commission said it fully respects these rights.
The Bundeskanzlermant, the autority to protect competition in Germany, said that a company is dominant – under German law – if it is “not exposed to any substantial competition or has a paramount market position in relation to its competitors”.
The German authority added:
“Practices of dominant companies are considered abusive if they discriminate against other businesses or impede their opportunities to compete; and if the companies demand prices or terms and conditions that exploit their customers, suppliers or users.”
There is no legal deadline to complete inquiries into anti-competitive conduct, according to the European Commission, as the duration depends on the complexity of each case and the scope of the exercise of defence rights.