On Dec. 11, 2013, in a speech delivered at the CRA Competition Conference in Brussels, Alexander Italianer, the European Commission's Director-General for Competition, clarified the Commission's approach in the negotiation of commitments. The speech also highlighted the benefits of the commitments procedure and explained the circumstances in which the Commission will pursue a prohibition decision.
Italianer explained that the Commission is not bound to accept commitments and commitments that are "quick, sufficient and sensible" are more likely to be acceptable. Commitments should be offered at the first opportunity, preferably before any statement of objections, should offer sound solutions that achieve "real change" in the markets, and should be easy to implement and monitor, he said. Companies should avoid offering conditional commitments.
Italianer went on to note that commitment decisions hold two key advantages: first, they offer tailor-made solutions to competition concerns; and second, they allow for a quicker resolution of such concerns than would be available through a prohibition decision. Furthermore, they allow companies to avoid paying fines and becoming involved in drawn-out legal proceedings, together with any associated reputational damage that this might entail.
Italianer also stated that the Commission will opt for a prohibition decision where it considers it necessary to punish, deter, or set a precedent (more likely in cartel cases), whereas commitments that offer speedy and viable solutions to initial competition concerns may convince the Commission to reach a settlement. Italianer concluded that commitment decisions have been a successful development because of their versatility.
The transcript of the speech is available here.
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