

Mission Organization Chart Statutes Activities Plan Strategy Contacts National Legislation European Community Notification of Mergers Merger Decisions Other Cases and Decisions Non-notification cases Competition Authority European Commission Responsibilities National Bilateral Multilateral OECD WTO UNCTAD	EU Functions The Competition Authority’s Powers and Duties The Competition Authority was created and its statutes were established in pursuance of Decree-Law No. 10/2003 of 18 January. Its responsibilities are as follows: To exercise all the powers that EU law confers on the national administrative authorities in the area of the competition rules applicable to business undertakings. To provide EU bodies with specialists representing the Portuguese state on competition policy matters; To monitor the competition activities of EU bodies and establish appropriate relations of co-operation with them. I. Anti-competitive practices Under the process of modernizing EU law, the publication on 4.1.2003 of Council Regulation (EC) No. 1/2003 of 16.12.2002, applicable from 1 May 2004, established a regime of legal exception, in which one of the fundamental elements is based on decentralising the application of EU competition rules. This allows the national competition authorities, along with the Commission, to apply Articles 81 and 82 of the Treaty in their entirety. Regulation No. 1/2003 provided the national competition authorities with important legal instruments to exercise their powers more efficiently. Under the new regulations, the Competition Authority assumes the following powers, within the scope of Articles 81 and 82 (the interpretation of which must consider the powers and obligations contained in Decree-Law No. 10/2003 of 18 January and Law No. 18/2003 of 11 June): *1. At a national level* To order the opening and investigation of cases relating to anti-competitive practices under Articles 81 and 82 and to reach the following decisions: to demand that an infringement cease to apply interim measures of protection to apply any fines, periodic penalty payments or additional sanctions provided for in national law to decide that no intervention is necessary either because an agreement or practice does not restrict competition or the conditions for exception are fulfilled To withdraw the benefit of a Community exemption regulation from certain categories of agreements, concerted practices or decisions by associations of undertakings, when they produce effects that are incompatible with Article 81 (3) of the Treaty, in the territory of Portugal or a part of it that presents all the characteristics of a distinct geographic market; To reject a reported infringement or suspend proceedings if it is ascertained that the practice involved is being investigated by the Commission or another competition authority; To provide the Commission with active assistance when it is carrying out inspections in undertakings or associations of undertakings with head offices in the territory of Portugal; To undertake any inspection or any other investigative measure within the territory of Portugal, in accordance with the respective Portuguese legislation, on behalf and on account of the competition authority of another Member State or at the request of the Commission, for the purpose of verifying infringement of Articles 81 and 82 of the Treaty. To deliver written and oral observations to the Portuguese courts and request them to supply all the necessary documents for the Authority to appraise the case and formulate its observations. *2. At the Commission level* To attend the meetings of the Directors General for Competition of the national authorities and the European Commission; To take part in the work of the Advisory Committees on Agreements, Decisions, Concerted Practices and Abuses of a Dominant Position The national competition authorities’ attendance at these committees is expressly provided for in Regulation (EC) No. 1/2003. This reflects the principles of co-operation between the Commission and Member States at the level of monitoring investigations in EU cases on anti-competitive practices and issuing an opinion on the content of the final decision proposed by the Commission. These meetings may also discuss cases under investigation that are being dealt with by Member State competition authorities, thus helping to guarantee the consistent application of Community competition rules. The advisory committees are also consulted about proposed Commission regulations aimed at exempting certain categories of agreement under Article 81 (3), as well as about drafts of measures to be adopted to ensure the proper application of Regulation No. 1/2003. *3. Within the ECN - European Competition Network* A central pillar for guaranteeing that Community law is applied effectively and coherently throughout the EU was considered to be the implementation of an intra-Community co-operation network, formally termed the ECN – European Competition Network The ECN is informal and flexible. Its decisions are not binding and it can in no way force members to act in a particular manner. However, it is believed that the constructive nature of the intense contact and debate will lead to consensus and allow most problems to be resolved. The Competition Authority’s participation in the network involves managing a huge flow of information and permanent contacts with other members so that Member States can co-operate on-line in activities relating to application of EU competition law within the European Union. It also involves a new set of functions arising essentially from managing the interface between the Community aspect and domestic aspect of activities and from participating in ECN plenary sessions, working groups and sectoral subgroups set up within the network. Thus, the Competition Authority’s duties are to: *Community aspect* Deal with questions of the allocation and reallocation of cases between the competition authorities and participate in the process of resolving possible conflicts; Guarantee that the Commission and members of the network are informed of cases under investigation by the CA, in compliance with Article 11 (3) and (4); Consult the Commission with regard to any case where community law is applied in pursuance of Article 11(5); Exchange confidential information and use this information as evidence in proceedings, under the terms of Articles 12; Forward the Competition Authority’s opinion to the Advisory Committee, when it is produced by written procedure under Article 14(4); Promote co-ordination with the Commission on the question of written observations to be presented to national courts in pursuance of Article 15(3); Gather any information within its jurisdiction in Portugal that the Commission may request. *Domestic aspect* Co-ordinate all the important material relating to Regulation (EC) No. 1/2003; Manage all the collected documentation and archives on Community cases; Guarantee that the archives for these cases are safe and secure and easily accessible, albeit with restrictions; Ensure the secrecy of the information in general and the protection of confidential information in particular; Guarantee that the competition authorities in other Member States are suitably interconnected with its internal services; Secure a formal and informal exchange of information and, where confidential information is involved, set the relevant legal mechanisms in motion so that they can be divulged; Provide the parties in proceedings with information identifying the competition authority responsible for investigating the case; Exchange information with national courts; Promote the distribution of relevant information among the national economic agents and judges and collect their observations whenever necessary for the formulation of a national position; Operate as a help-desk for all queries on the modernization of EU law, when approached by domestic or foreign companies and bodies. *ECN Plenary Sessions, Working Group Meetings and Sectoral Subgroup Meetings* The ECN Plenary Sessions take place periodically in Brussels. Their main object is to monitor the effective implementation of Regulation (EC) No. 1/2003 and debate issues of a horizontal nature. All Member States and, clearly, the competition authorities have a place in the plenary sessions. In connection with the ECN plenary sessions, 3 directly-dependent working groups have been set up – Transitional Issues, Ne Bis In Idem and Leniency – to carry out priority in-depth horizontal studies. The Competition Authority has been actively participating in their work. Two other very important ECN working groups deserve mention: the Working Group on Abuses of a Dominant Position and the Chief Competition Economists’ Working Group. The latter is still in the establishment phase. In parallel, Sectoral Subgroups have been established. They consist of informal platforms to examine the experience and best practice of national competition authorities in the different regulated and unregulated economic sectors in the area of industry, services, trade and distribution. They also represent a forum in which Member States can present actual cases being handled and debate the most complex problems. This means that useful conclusions may be drawn from the discussion, not only to resolve the case in question but also to contribute to developing a common approach to application of the competition rules throughout the EU. At present, there are 14 sectoral subgroups, in which the Portuguese Competition Authority actively participates, namely: Banking Securities Insurance Energy Environment Media Telecommunications Information Technology The professions Health care Pharmaceuticals Food Automotive vehicles Railways As with the working groups, more sectoral subgroups will be set up whenever the study of new projects in important economic sectors is seen to be of use from the EU competition point of view. The Competition Authority is represented in all of the working groups and subgroups that are operating and takes part in their activities. II. Control of Mergers with a Community Dimension The Competition Authority’s participation in the work of the Advisory Committee on Concentrations between Undertakings is laid down in Council Regulation (EEC) No. 4064/89 of 21 December 1989, which relates to the control of mergers with a Community dimension. The Advisory Committee is made up of one or two representatives of the various Member States’ competition authorities. At least one must have experience in the field of anti-competitive practices and dominant positions. In addition to discussing individual cases of mergers between undertakings, which represents the primary reason for its existence, this advisory committee also debates possible adaptations of existing legislative instruments or the creation of new ones. III. Informal Working Group on Trade and Competition The Competition Authority takes part in this Working Group on Trade and Competition, which has the basic task of using the inputs of the European Commission and Member States to prepare working documents that, under the aegis of the EC, are presented in Geneva at the formal WTO (World Trade Organization) Working Group meetings on the interaction between trade and competition. IV. State Aid State aid is governed by the Community Competition Policy applicable to the Member States – Articles 87 to 89 of the EC Treaty. Co-operation with national competition authorities takes place by way of their participation in the work of the Advisory Committee on State Aid. Besides the meetings of this Advisory Committee, created by Council Regulation No. 659/1999 of 22.03.1999, the Commission promotes multilateral meetings in which Member State representatives also participate. V. Council At the Council level, the Competition Authority participates in the Economic Questions Group on Competition. Its work includes the preparation or revision of EC regulations and the respective legislative instruments and non-legislative measures for their effective application.

EU Functions

The Competition Authority’s Powers and Duties

The Competition Authority was created and its statutes were established in pursuance of Decree-Law No. 10/2003 of 18 January. Its responsibilities are as follows:

To exercise all the powers that EU law confers on the national administrative authorities in the area of the competition rules applicable to business undertakings.
To provide EU bodies with specialists representing the Portuguese state on competition policy matters;
To monitor the competition activities of EU bodies and establish appropriate relations of co-operation with them.

I. Anti-competitive practices

Under the process of modernizing EU law, the publication on 4.1.2003 of Council Regulation (EC) No. 1/2003 of 16.12.2002, applicable from 1 May 2004, established a regime of legal exception, in which one of the fundamental elements is based on decentralising the application of EU competition rules. This allows the national competition authorities, along with the Commission, to apply Articles 81 and 82 of the Treaty in their entirety.

Regulation No. 1/2003 provided the national competition authorities with important legal instruments to exercise their powers more efficiently. Under the new regulations, the Competition Authority assumes the following powers, within the scope of Articles 81 and 82 (the interpretation of which must consider the powers and obligations contained in Decree-Law No. 10/2003 of 18 January and Law No. 18/2003 of 11 June):

1. At a national level

To order the opening and investigation of cases relating to anti-competitive practices under Articles 81 and 82 and to reach the following decisions:
- to demand that an infringement cease
- to apply interim measures of protection
- to apply any fines, periodic penalty payments or additional sanctions provided for in national law
- to decide that no intervention is necessary either because an agreement or practice does not restrict competition or the conditions for exception are fulfilled
To withdraw the benefit of a Community exemption regulation from certain categories of agreements, concerted practices or decisions by associations of undertakings, when they produce effects that are incompatible with Article 81 (3) of the Treaty, in the territory of Portugal or a part of it that presents all the characteristics of a distinct geographic market;
To reject a reported infringement or suspend proceedings if it is ascertained that the practice involved is being investigated by the Commission or another competition authority;
To provide the Commission with active assistance when it is carrying out inspections in undertakings or associations of undertakings with head offices in the territory of Portugal;
To undertake any inspection or any other investigative measure within the territory of Portugal, in accordance with the respective Portuguese legislation, on behalf and on account of the competition authority of another Member State or at the request of the Commission, for the purpose of verifying infringement of Articles 81 and 82 of the Treaty.
To deliver written and oral observations to the Portuguese courts and request them to supply all the necessary documents for the Authority to appraise the case and formulate its observations.

2. At the Commission level

To attend the meetings of the Directors General for Competition of the national authorities and the European Commission;
To take part in the work of the Advisory Committees on Agreements, Decisions, Concerted Practices and Abuses of a Dominant Position

The national competition authorities’ attendance at these committees is expressly provided for in Regulation (EC) No. 1/2003. This reflects the principles of co-operation between the Commission and Member States at the level of monitoring investigations in EU cases on anti-competitive practices and issuing an opinion on the content of the final decision proposed by the Commission. These meetings may also discuss cases under investigation that are being dealt with by Member State competition authorities, thus helping to guarantee the consistent application of Community competition rules.

The advisory committees are also consulted about proposed Commission regulations aimed at exempting certain categories of agreement under Article 81 (3), as well as about drafts of measures to be adopted to ensure the proper application of Regulation No. 1/2003.

3. Within the ECN - European Competition Network

A central pillar for guaranteeing that Community law is applied effectively and coherently throughout the EU was considered to be the implementation of an intra-Community co-operation network, formally termed the ECN – European Competition Network

The ECN is informal and flexible. Its decisions are not binding and it can in no way force members to act in a particular manner. However, it is believed that the constructive nature of the intense contact and debate will lead to consensus and allow most problems to be resolved.

The Competition Authority’s participation in the network involves managing a huge flow of information and permanent contacts with other members so that Member States can co-operate on-line in activities relating to application of EU competition law within the European Union. It also involves a new set of functions arising essentially from managing the interface between the Community aspect and domestic aspect of activities and from participating in ECN plenary sessions, working groups and sectoral subgroups set up within the network. Thus, the Competition Authority’s duties are to:

Community aspect

Deal with questions of the allocation and reallocation of cases between the competition authorities and participate in the process of resolving possible conflicts;
Guarantee that the Commission and members of the network are informed of cases under investigation by the CA, in compliance with Article 11 (3) and (4);
Consult the Commission with regard to any case where community law is applied in pursuance of Article 11(5);
Exchange confidential information and use this information as evidence in proceedings, under the terms of Articles 12;
Forward the Competition Authority’s opinion to the Advisory Committee, when it is produced by written procedure under Article 14(4);
Promote co-ordination with the Commission on the question of written observations to be presented to national courts in pursuance of Article 15(3);
Gather any information within its jurisdiction in Portugal that the Commission may request.

Domestic aspect

Co-ordinate all the important material relating to Regulation (EC) No. 1/2003;
Manage all the collected documentation and archives on Community cases;
Guarantee that the archives for these cases are safe and secure and easily accessible, albeit with restrictions;
Ensure the secrecy of the information in general and the protection of confidential information in particular;
Guarantee that the competition authorities in other Member States are suitably interconnected with its internal services;
Secure a formal and informal exchange of information and, where confidential information is involved, set the relevant legal mechanisms in motion so that they can be divulged;
Provide the parties in proceedings with information identifying the competition authority responsible for investigating the case;
Exchange information with national courts;
Promote the distribution of relevant information among the national economic agents and judges and collect their observations whenever necessary for the formulation of a national position;
Operate as a help-desk for all queries on the modernization of EU law, when approached by domestic or foreign companies and bodies.

ECN Plenary Sessions, Working Group Meetings and Sectoral Subgroup Meetings

The ECN Plenary Sessions take place periodically in Brussels. Their main object is to monitor the effective implementation of Regulation (EC) No. 1/2003 and debate issues of a horizontal nature. All Member States and, clearly, the competition authorities have a place in the plenary sessions.

In connection with the ECN plenary sessions, 3 directly-dependent working groups have been set up – Transitional Issues, Ne Bis In Idem and Leniency – to carry out priority in-depth horizontal studies. The Competition Authority has been actively participating in their work.

Two other very important ECN working groups deserve mention: the Working Group on Abuses of a Dominant Position and the Chief Competition Economists’ Working Group. The latter is still in the establishment phase.

In parallel, Sectoral Subgroups have been established. They consist of informal platforms to examine the experience and best practice of national competition authorities in the different regulated and unregulated economic sectors in the area of industry, services, trade and distribution.

They also represent a forum in which Member States can present actual cases being handled and debate the most complex problems. This means that useful conclusions may be drawn from the discussion, not only to resolve the case in question but also to contribute to developing a common approach to application of the competition rules throughout the EU.

At present, there are 14 sectoral subgroups, in which the Portuguese Competition Authority actively participates, namely:

Banking
Securities
Insurance
Energy
Environment
Media
Telecommunications
Information Technology
The professions
Health care
Pharmaceuticals
Food
Automotive vehicles
Railways

As with the working groups, more sectoral subgroups will be set up whenever the study of new projects in important economic sectors is seen to be of use from the EU competition point of view. The Competition Authority is represented in all of the working groups and subgroups that are operating and takes part in their activities.

II. Control of Mergers with a Community Dimension

The Competition Authority’s participation in the work of the Advisory Committee on Concentrations between Undertakings is laid down in Council Regulation (EEC) No. 4064/89 of 21 December 1989, which relates to the control of mergers with a Community dimension.

The Advisory Committee is made up of one or two representatives of the various Member States’ competition authorities. At least one must have experience in the field of anti-competitive practices and dominant positions.

In addition to discussing individual cases of mergers between undertakings, which represents the primary reason for its existence, this advisory committee also debates possible adaptations of existing legislative instruments or the creation of new ones.

III. Informal Working Group on Trade and Competition

The Competition Authority takes part in this Working Group on Trade and Competition, which has the basic task of using the inputs of the European Commission and Member States to prepare working documents that, under the aegis of the EC, are presented in Geneva at the formal WTO (World Trade Organization) Working Group meetings on the interaction between trade and competition.

IV. State Aid

State aid is governed by the Community Competition Policy applicable to the Member States – Articles 87 to 89 of the EC Treaty. Co-operation with national competition authorities takes place by way of their participation in the work of the Advisory Committee on State Aid.

Besides the meetings of this Advisory Committee, created by Council Regulation No. 659/1999 of 22.03.1999, the Commission promotes multilateral meetings in which Member State representatives also participate.

V. Council

At the Council level, the Competition Authority participates in the Economic Questions Group on Competition. Its work includes the preparation or revision of EC regulations and the respective legislative instruments and non-legislative measures for their effective application.