92002E2509

WRITTEN QUESTION P-2509/02

by Christopher Beazley (PPE-DE) to the Commission

(3 September 2002)

Subject: Distribution of newspapers in Member States

Is the Commission aware that, in order to be supplied with UK national newspaper titles, newsagents in the Republic of Ireland have to pay a surcharge (carriage service charge) to the relevant wholesaler, but do not pay such a surcharge in respect of certain Irish national newspaper titles?

Is the Commission further aware that the requirement to pay a surcharge is made possible because there is a system of exclusive distribution that applies to some newspaper titles, so that newsagents have no alternative source of supply?

Does the Commission consider that this situation is in conformity with the principles of the Single Market?

Answer given by Mr Monti on behalf of the Commission

(24 October 2002)

The Commission is aware of the existence of distribution systems for newspapers, including the practice of carriage charges, in the Member States, in particular in the United Kingdom(1), but it has no specific information on the current functioning of this system in Ireland.

Exclusive distribution systems as referred to by the Honourable Member, if based on agreements between publishers, wholesalers and newsagents, may be relevant under Community competition rules, as laid down in Article 81 of the EC Treaty and, in particular, Block Exemption Regulation (EC) No 2790/1999(2) in conjunction with the Guidelines on vertical restraints(3) rather than the market freedom provisions of the EC Treaty which mainly target State regulation.

The situation described in the written question has not been the subject of a notification or a complaint to the Commission with regard to Community competition rules. Nor has the Commission currently any evidence that the differences in the wholesale price for Irish and British newspapers in Ireland are the consequence of behaviour incompatible with the above

Block Exemption Regulation or Guidelines or are otherwise contrary to Community competition rules. It should also be noted that carriage charges specifically foreseen for printed products imported from the United Kingdom may be designed to cover additional transport and distribution costs incurred by the wholesaler.

The Commission, which is following closely the evolution of cross-border pricing for newspapers and magazines within the Union in the light of Community competition rules, will establish contact with the Irish and UK competition authorities with a view to further assessing the matter.

(1) See review by the OFT, http://www.oft.gov.uk/news/press+releases/2002/pn+02-02.htm.

(2) Commission Regulation (EC) No 2790/1999 of 22 December 1999 on the application of Article 81(3) of the Treaty to categories of vertical agreements and concerted practices OJ L 336, 29.12.1999.

(3) Commission Notice Guidelines on vertical restraints OJ C 291, 13.10.2000.