EU Competition Policy
Competition law has an important role to play in the imbalances of power in supply chains, which need to be addressed in order to give producers and workers a fair share of the benefits of trade.
Competition law had in the past a broader understanding of public interest objectives but is now becoming a hurdle for sustainability. The currently dominant interpretation of competition law does not take into account sustainability but rather focuses mainly on the lowest consumer prices in the short run. This results in social and environmental concerns currently not being part of the assessments for decisions on e.g. mergers or exemptions to sectoral collaborations for sustainability.
The latter has a chilling effect on the willingness of actors in a supply chain to discuss sustainability issues such as farmers’ incomes, as they fear persecution under competition law.
At the heart of the issue is a restrictive view of consumer welfare which is not in line with the Sustainable Development Goals (SDGs), the broader EU treaty provisions, and which, in the long run, will not be beneficial for EU consumers/citizens.
WHAT ARE THE FTAO’S VIEWS?
- The EU should clarify the boundaries of competition law and provide guidelines for companies to discuss sustainability issues, such as living income for farmers.
- The EU should expand the interpretation of consumer welfare, to take into account social and environmental sustainability dimensions and future consumers.
- The EU and competition authorities should take systematic sustainability concerns into account in their decisions.
Joint Response to the European Commission’s public consultation on draft Guidelines to CMO Regulation Art. 210a, April 2023
Summary of Joint Response to the European Commission’s public consultation on the draft revised Horizontal Guidelines, May 2022
Joint Response to the European Commission’s public consultation on the draft revised Horizontal Guidelines, May 2022
Joint letter to the Executive Vice-President of the European Commission – Calling for competition rules that work for social sustainability, January 2022
FTAO Submission to Consultation on Horizontal Block Exemption Regulations and Horizontal Guidelines, October 2021
FTAO Submission to European Consultation on Competition Policy Supporting the Green Deal, December 2020
FTAO discussion paper: How Can the New Competition Tool Help Bridge the Gap Between Sustainability and EU Competition Law? December 2020
FTAO position paper EU Competition Law and Cooperation Agreements for Sustainability, June 2020
FTAO Report: EU Competition Law and Sustainability – Addressing the Broken Links, February 2019
FTAO Briefing Note: EU Competition Law and Sustainability – Addressing the Broken Links, February 2019
FTAO Competition Law and Sustainability Initiative Discussion Paper and Action Plan, December 2018
FTAO Report – Competition Law and Sustainability in the Netherlands, June 2016
Article – The Sustainability Dilemma in Competition Law, ECDPM – Great Insights, 2019 (p19.21)
Fairtrade Foundation Blog – Does competition law serve consumer interest and future needs? 2017
Oxfam Germany Report – The Power or Corporations in the Digital World, 2019
You can find out how our work on EU policies links to our key topics here.