Brussels Brief - February 1, 2008
February 1, 2008
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KEY DEVELOPMENTS
Competition: E.ON Fined EUR 38 Million for Breach of Seal
Yannis Virvilis
The European Commission has imposed a fine of EUR 38 million on the German energy company E.ON for the breach of a seal affixed by the Commission during an inspection in May 2006. The seal had been affixed to secure documents collected at E.ON’s premises during a dawn raid for alleged anticompetitive practices in the German electricity market. E.ON denied having broken the seal, and suggested that other reasons, such as the age of the seal or a high level of humidity, may have caused the seal to appear to have been violated. The Commission conducted an investigation, which included the use of outside experts, and concluded that the seals had, indeed, been violated by someone within E.ON.
Intellectual Property: No Disclosure of Personal Data in Civil Proceedings
Bróna Heenan
Promusicae, a Spanish collecting society holding exploitation rights to musical and audiovisual recordings, was seeking an order before a Spanish court to require Telefónica to disclose the identities and addresses of certain of its customers. Promusicae believed these customers were infringing Promusicae’s rights through KaZaA, a file exchange programme. Telefónica refused on the grounds that, under Spanish law, the communication of personal data was authorised only in criminal investigations or on public security/national defence grounds. The Spanish court referred a question to the European Court of Justice (ECJ) to ask whether, in order to ensure effective protection of copyright, EU Member States were required to lay down obligations to communicate personal data in the context of civil proceedings. Having reviewed the obligations contained in a series of Community Directives on electronic commerce, harmonisation of copyright and the enforcement of intellectual property rights, the ECJ concluded that there was no such obligation under Community law.
Consumer Protection: Commission Proposes Strict Rules to Improve Toy Safety
Elena Kostadinova
The European Commission has proposed a new Toys Directive that introduces more stringent safety requirements. The proposal aims to place more responsibility on manufacturers and importers for introducing safe toys onto the EU market and seeks to increase the Member States’ market surveillance obligations. The proposal includes a ban on the use of allergenic fragrances and chemical substances that are believed to cause cancer, and also a reduction in the legal limits of dangerous substances such as lead and mercury. Toy manufacturers would be obliged to provide technical information on their products to facilitate control by the national authorities. Member States would also be obliged to strengthen controls and impose dissuasive penalties. The proposed Directive will now be discussed in the European Parliament and Council under the co-decision procedure.
Internal Market: Commission Proposal to Overhaul EU Food Labelling Rules
Chen Dingsheng
The European Commission has adopted a proposal to make food labels clearer and more relevant to the needs of EU consumers. Its aim is to modernise and improve EU food labelling rules so that consumers have, in a legible and understandable manner, the essential information they need to make informed purchasing choices. Pre-packaged food will have to display key nutritional information on the front of the package. General requirements on how nutrition information should be displayed are set out, although there is room for Member States to promote additional national measures, provided they do not undermine the EU rules. The proposal also extends the current requirements for allergen labelling to cover non pre-packaged food, including food sold in restaurants and other catering establishments.
Culture: Commission to Launch Study on Unleashing Talent and Creativity in Europe
Jonathan Aitken
The European Commission has announced the launch of a study to focus on the role of culture in promoting and stimulating creativity, innovation and growth in the European Union. Speaking at a music industry conference in
Energy: Liberalisation of Electricity and Gas Market Goes Too Far
Geert Dierickx
The Committee of the Regions has finalised a consultation on the further liberalisation of the European Union’s electricity and gas market. The general feedback suggests that these proposals are too far-reaching, as respondents argued that it would be better to properly implement the legal framework adopted in 2003. In addition, the feedback suggests that more practical help must be provided to EU Member States and regions that have not yet transposed this legislation. The Commission’s idea to set up an Agency for the Cooperation of European Regulators and its proposal on ownership unbundling (the separation of network activities from supply and production) were both rejected. This was because there was no adequate economic evidence showing these to be necessary to ensure the proper functioning of the market.
State Aid: Commission Authorises Reform of Belgian Tax
Patricia Armesto
In Belgium pharmaceutical companies contribute to the financing of the health system through a tax calculated on the basis of sales of reimbursed medicines. On 26 June 2007, the Belgian Government proposed a series of tax reductions and exemptions that would represent an annual budget of around EUR 47 million. At the time of its review, the Commission asked the Belgian authorities to make some adjustments in order to distribute the aid more efficiently. Following these adjustments, the European Commission has decided not to raise any objections and has concluded that the proposed measures are now compatible with the common market.
State Aid: Commission Investigates Municipality of Rotterdam's Investment in Ahoy Complex
Juan Gutiérrez
The European Commission has opened an in-depth investigation into the investment planned by the municipality of Rotterdam to renovate and develop the Ahoy complex. The complex comprises a sports centre, exhibition halls and a large meeting and convention centre. The municipality privatised the operation of the complex in 2006, leasing it to the operator, Ahoy Rotterdam N.V. As the owner of the complex, the municipality of Rotterdam will invest in the renovation and development of the Sports Palace. The Commission will investigate whether this investment could constitute State aid to the operator of the complex. Interested parties will have the opportunity to submit their comments within one month of publication of the Commission’s notice in the Official Journal.
NEXT WEEK’S EVENTS
Monday 4 February – Friday 8 February 2008
COUNCIL MEETINGS
No Council meetings scheduled for next week.
COURT OF JUSTICE
There will be no sitting of the Court of Justice during the week from 4 February 2008 and 10 February 2008 inclusive
COURT OF FIRST INSTANCE
There will be no sitting of the Court of First Instance during the week from 4 February 2008 and 10 February 2008 inclusive.
