Competition
The Working Group on Competition Policy is responsible for the legislation contained in Annex XIV and Protocols 21-25 of the EEA Agreement. Articles 53 - 60 of the EEA Agreement covers competition. Protocol 4 to the Surveillance and Court Agreement covers the powers of ESA in the field of competition.
In order to ensure a fair and efficient market, the EEA Agreement contains competition rules which apply to all undertakings throughout the EEA. The competition rules under the EEA Agreement correspond to those in the EU and can be summarised as follows:
- A prohibition on agreements or practices that distort or restrict competition, with certain exceptions;
- A prohibition on the abuse of a dominant position by market participants;
- The requirement that prior clearance be obtained for certain large mergers and other concentrations of undertakings, and
- Restrictions on certain state measures that may result in infringement of the competition rules.
The EFTA Surveillance Authority (ESA) is responsible for ensuring that these rules are applied within the EEA EFTA States. However, when a case has appreciable implications for competition in the EU as well, it is handled primarily by the European Commission. Both ESA and the European Commission have extensive powers to ensure that the rules are complied with, including the right to fine companies.
The Working Group on Competition Policy meets regularly and actively follows EU initiatives within the field of competition.
See also:
DG Competition (DG COMP) - Competition
EFTA Surveillance Authority - Competition
State Aid
The Working Group on State aid is responsible for the legislation contained in Annex XV and Protocols 26 - 27 of the EEA Agreement. Articles 61-64, plus 49 and 59 of the EEA Agreement covers State aid. Protocol 3 of the Surveillance and Court Agreement covers the powers of ESA in the field of State Aid.
The State aid rules under the EEA Agreement broadly correspond to those in the EU. State aid is public support to commercial activities, and it can be in many forms, including grants, loans, tax concessions etc. As a rule, State aid is prohibited to prevent market distortion and negative effects on trade. Exemptions are made where public interventions might be necessary for a well-functioning and equitable economy, in areas such as research and development, environmental protection, regional development etc. In such cases, aid might be considered compatible with the functioning of the internal market.
It is the EFTA Surveillance Authority (ESA) which enforces the State aid rules in the EEA EFTA countries, including assessing compatibility of aid with the functioning of the internal market. ESA also has the power to order repayment of unlawful aid. All State aid measures must be notified to and approved by ESA before their implementation.
The Working Group on State Aid meets regularly and actively follows EU initiatives within the field of State aid, including attending multilateral meetings with the European Commission and experts from EU Member States.
See also:
DG Competition (DG COMP) - State aid
EFTA Surveillance Authority - State aid
