91999E1085

WRITTEN QUESTION P-1085/99

by Gerhard Hager (NI) to the Commission

(13 April 1999)

Subject: Petroleum-products suppliers

According to my information, Austrian petroleum-products suppliers differentiate very strongly between their customers. Whereas fuel is supplied on favourable terms to their contract distributors, those retailing at a discount are required to pay an additional premium. The practice has once again become apparent subsequent to the price reduction conceded under pressure of public opinion. Contract distributors are now taking deliveries of fuel at savings of up to 40 groschen per litre. In the circumstances known to me, prices to discounting distributors have, however, been increased by 57 groschen per litre of super plus. With distributors now forced to choose among a more than restricted range of suppliers, they have no option in most cases but to accept the prices on offer. I believe the tactics of the petroleum-products suppliers are extremely dubious in terms of competition law.

I therefore put the following questions to the Commission:

1. Is the Commission aware of the situation described?

2. How does it assess it in relation to competition law?

3. Will the Commission take action in response to this situation?

4. If not, why not?

Answer given by Mr Van Miert on behalf of the Commission

(4 May 1999)

1. The Commission is not aware of the price differentiation practised by Austrian petrol companies at the wholesale level as described by the Honourable Member.

2. Community competition law applies to agreements or concerted practices of undertakings which have as object or effect the appreciable restriction of competition (Article 81 of the EC Treaty ex Article 85) and abusive market conduct of dominant undertakings (Article 82 of the EC Treaty ex Article 86). It is impossible to assess the market conduct described by the Honourable Member in application of the above rules without knowing facts about the markets and companies concerned and, in particular, whether the petrol companies acting as sellers on the Austrian wholesale market enjoy market power. Price differentiation does not as such infringe Community competition law.

3. and 4. The Commission is aware that the Austrian competition authority is currently looking into Austrian petrol markets and the market conduct of petrol companies. It is the Commission's policy on cooperation with national competition authorities (see notice of 1997(1)) that checks on compliance with the competition rules should wherever possible be carried out by a single authority. Accordingly, the Commission does not intend to take action for the time being.

(1) OJ C 313, 15.10.1997.