Transcript Document

Crisis and Competition Enforcement
Lithuanian Style
Šarūnas Keserauskas, Chairman, Competition Council
28 May 2011, Athens
Overview
• Crisis in figures
• Effect of crisis on firms
• Effect of crisis on the Lithuanian NCA
Crisis in figures I
• GDP: contracting by 14 to 15.9 percent in each
quarter of 2009 compared to the preceding
quarter
• State budget revenue (excluding foreign
financial assistance):
– 2008: EUR 6.72 (5.71) bn
– 2009: EUR 5.99 (4.28) bn
– 2010: EUR 5.76 (4.21) bn
Crisis in figures II
• Average monthly salary (gross):
– 2008 4Q: EUR 672
– 2010 1Q: EUR 588
• Population:
– 2008: 3.35 million
– 2011: 3.05 million (May 2011 population census)
EFFECT OF CRISIS
ON FIRMS
Effect of crisis on firms
• No crisis cartels observed
• Rising prices have fuelled calls for price
regulation
• More requests for reduction of fines
Reduction of fines 2009-2010
• 6 Cases with fine reductions due to the crisis:
– 48 undertakings benefited from the reductions
– EUR 227,490 overall reduction
• 10% non-individualised reductions in 5 cases
• 20% non-individualised reduction in 1 case due
to severe decline in the sector (Car Rental)
• No grounds found for individualised “crisis
reductions”
EFFECT OF CRISIS ON
THE LITHUANIAN NCA
NCA budget, EUR (m)
Year
Total
Salaries
2008
1.33
0.86
2009
1.05
0.72
2010
0.87
0.61
NCA staff monthly salaries,
EUR (gross)
Year
2008
Chairman Top-level
expert
2,163
1,375
Mid-ranking
expert
917
2009
1,783
1,146
802
2010
1,473
962
743
NCA spending on technical
means and staff training, EUR
Year
Staff training
2008
Technical
means
18,835
2009
6,869
1,670
2010
0
156
2,234
ENFORCEMENT
RECORD
Case statistics 2008 – 2010
Year
Art. 5 decisions
(anticompetitive
agreements)
Art. 9 decisions (abuse of
dominance)
Mergers
2008
Infringement: 3
Non-infringement: 3
Infringement: 1
Non-infringement: 1
55
2009
Infringement: 3
Commitments: 1
Infringement: 1
Non-infringement: 2
46
2010
Infringement: 6
Non-infringement: 1
Infringement: 3
Commitments: 1
Non-infringement: 2
37
WHAT DOES
IT ALL MEAN?
More for less?
• Don’t jump to the wrong conclusion: cutting
the NCA’s budget does not necessarily lead
to better enforcement!
• Crisis did focus the NCA’s mind:
– The Chairman stopped being driven by a chauffeur
– More attention to cartels
• But the authority is running on fumes
Much more for a little bit
more!
• Setting prioritisation principles
• Main focus on:
– Anti-cartel enforcement
– Competition advocacy
• Adequate and independent budget