91998E1321

WRITTEN QUESTION P-1321/98 by Michael McGowan (PSE) to the Commission (24 April 1998)

Subject: Damage to internal trade relations by actions of AB Volvo, Sweden

In view of the fact that AB Volvo, Sweden have failed to honour an agreement made with Synergy Dynamics UK based in my constituency, is the Commission aware of the damage that has been done to cooperative intra-European Union research and development programmes by the actions of AB Volvo, Sweden and will it investigate AB Volvo's handling of this matter?

I refer specifically to the 'Lindholmen' project and the refusal of AB Volvo to meet the costs incurred by Synergy Dynamics UK in designing an International Knowledge Centre for Gothenburg on the instructions of an employee of AB Volvo who wrongly informed them that he was a Director for Management Leadership Development.

AB Volvo, Sweden have refused to settle the debt of GBP 100 000. This has resulted in extreme difficulties for Synergy Dynamics and caused further expense and a huge usage of time for this SME. Further to this, AB Volvo have implied the use of their financial strength to repel any move to claim the money owed through legal procedures by Synergy Dynamics UK for work carried out in good faith and I would further ask the Commission:

1. What protection is there presently or in proposed EU legislation for SMEs dealing with large and multinational corporations?

2. Whether there is any current or proposed legislation to protect SMEs from being intimidated away from litigation in such instances by the financial might of such companies?

Answer given by Mr Papoutsis on behalf of the Commission (12 June 1998)

The dispute between the two firms mentioned by the Honourable Member is a question of private law. The Commission does not have any legal means to challenge a firm's behaviour under Community law. There is no legislation dealing specifically with the relationship between small and medium sized enterprises (SMEs) and large, multi-national corporations.