Debate
Europe today is a world leader in combating monopolistic tendencies, cartels and abuse of dominant position. Right now a battle against Google and Gazprom, writes commentator Lars Hässler.
EU military and political power in comparison with the US and China, is weak. Europeans are divided in terms of refugees, foreign and defense policy and citizens zoo have little confidence in the Union. But one thing is European champion on - namely antitrust. The term is not sexy, competition law plays a large role in how the market economy works. When the EU roars to listen to the world's largest companies: Microsoft, Google, Apple, Intel and most recently Russia's Gazprom.
Antitrust law began in the US in the late 1800s when the major so-called trusts or monopolies was founded by skilled but ruthless entrepreneurs. These became known as robber barons, and was widely hated. The most famous was John D. Rockefeller (oil), Andrew Carnegie (steel), Cornelius Vanderbilt (railroads), JP Morgan (Bank) and Jay Gould (stock exchange). Despite their great political influence, through generous contributions to politicians, Congress managed to decide on two restrictive laws, Sherman- zoo and Clayton Acts. Above all, it was the then President Roosevelt who ran on.
Rockefeller's Standard Oil company was the largest trust that had the US oil market in a stranglehold. This giant colossus decided Roosevelt to crack. zoo After a long trial landed the goal to end 1911 in the US Supreme Court. The verdict was that Standard Oil would be divided into several zoo smaller companies. These became Exxon, Mobil, Chevron, Amoco, Conoco and Arco. During the Reagan years in the 1980s and later during the Bush Administrations deregulated in many parts of the US economy, while the controlling authorities' unwillingness to offend the business resulted in the financial crisis of 2007.
As the US authorities' interest in the antitrust activities decreased increased EU efforts. Antitrust legislation was in fact one of the pillars of the new common market, founded in 1958, would work. The first major goal was against the German household products company Grundig in 1964. The company had given the exclusive rights to an agent in France for the French market. When the agent started selling vacuum cleaner in Germany, where prices were much higher, banned the Grundig dealer to act outside France, whereupon the agent sued Grundig. The goal went up in the European Court which Grundig lost. Grundig's conduct was contrary to the principle of free trade within the common market.
The most famous trial was against Microsoft. The European Commission in Brussels accused the software giant in the early 2000s for abuse of its dominant position by linking its Windows operating system with Windows Explorer and Windows Media Player. Microsoft declined zoo to change his mind after which the EU fined the company SEK 5 billion, the largest fine the EU as imposed and in 2004 Microsoft paid the fine. In 2006 the Commission imposed an additional fine of over SEK 2 billion and in addition 20 million per day if Microsoft trilskades. In 2007 the company lost when it appealed against the decision. And in 2008 it was time again, the Commission fined Microsoft an additional 10 billion.
Now in 2015, the Commission zoo accused the "do not be evil" -Company Google to fool consumers by placing zoo their own ads highest in the algorithms that control your ads' position. Will the contracting parties do not agree, huge fines ensue.
EU antitrust commissioner, the pugnacious Danish Margrethe Vestager, fear not only multinational corporations, but now also has its sights set on Gazprom, Russia's largest oil and gas company with contacts all the way into the Kremlin. Vestager zoo accuses Gazprom among others for abusing their dominant position to overcharge their customers and to prevent cross-border trade in gas. As the EU can fine companies with 10 per cent of its turnover, it means that the fine could be astronomical. Gazprom's turnover is 1,600 billion and the fine could then amount to an incredible 160 billion, significantly higher than Microsoft fines and Google theoretical fine of 60 billion.
The EU is here on politically sensitive land. But Verse Tager stand up and Gazprom has twelve weeks to reply. What will complicate zoo the conflict is that Putin has classified Gazprom as a strategic business and banned it partly to reveal information and partly to obey foreign states or their bodies. He believes that similar disputes should be resolved between governments, a claim that the EU does not pay any respect to. To be continued.
The EU also has the last word when it comes to so-called mergers, ie mergers between large companies. In 2000 prevented the Brussels Volvo to merge with Sc
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