Top commission official defends EU's anti-trust policy

A top commission official says the EU will "continue to adopt a vigorous" stance on anti-trust policy.

The "get tough" warning, from Nadia Calvino, comes in the wake of hefty recent fines against major giants like Intel and Microsoft for anti-trust abuses.

Calvino, deputy director general  at the commission's competition directorate, used a speech in Brussels on Wednesday to repeat the commission's pledge to "come down heavily" on companies in such cases.

However, she stressed the aim was not "to drive companies out of business", adding that the commission was mindful of the impact financial sanctions can have on businesses during an economic downturn.

Her comments come after complaints by Intel that the commission ignored the US-based company´s rights in levelling a record €1.6bn fine in July.

Intel said the EU failed its right in due process by not granting it a second hearing.

The case led to 22 members of the US congress writing to the commission expressing concern at how the EU treats American firms.

But, opening a conference on anti-trust policy, Calvino made a robust defence of the commission and also dismissed accussations that it was American companies that are being targeted by the EU and that Brussels had been "soft" on European firms.

"These allegations are totally unfounded," she declared. "In fact, US companies are under-represented when it comes to fines for anti-trust abuses."

She added, "Yes, it is a hot topic at present and significant fines have been imposed recently in a number of high-profile cases which have attracted a lot of publicity. Indeed,the commission has been criticised for the level of fines it has imposed with some saying they are even criminal.

"But, in the Intel case, let´s remember that this still represents just four per cent of its total annual turnover and it is not just major corporations like Intel that have had sanctions imposed by the commission.

She also said that fines "rarely"  top the 10 per cent cap set by the regulator.

"There is always room for improvement but I strongly object to accusations that the commission´s standards (in this field) are not right."

"The aim is to put an end to anti-competitive conduct which can have a very damaging effect for both the economy and consumers alike."

The Spaniard,who has special responsibility for merges and and anti-trust, also dismissed suggestions that it is the CEOs of offending corporations who should face criminal charges,including possible jail sentences, rather than fines being imposed on their companies.

"Let's be realistic - in Europe this approach would not work. We will have to stick to fines for quite some  time to come. This kind of public enforcement is the only way to fight anti-competitive behaviour."

The economist stressed that the commission, in pursuing such cases, "did not ignore" the impact of the downturn, adding,"We are not out to drive companies out of business but to deter such behaviour."

She told the audience the commission would "endeavour" to close cases which are unlikely to lead to infringement action "as soon as possible."

Instead, she said the executive would "pursue a vigorous approach and focus on the big, bad" offenders.

Calvino,who took up her current post in 2006, was one of the keynote speakers at the one-day conference, organised by the American chamber of commerce to the EU.

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