Companies generally have to self-assess their agreements for compliance with competition law. But to tackle the health crisis some businesses have worked together to ensure uninterrupted supply of essentials – often supported by guidance from competition authorities.
Now, businesses are looking at ways to cooperate to ease recovery from the crisis. As declining markets and sudden, non-transitory shocks tend to trigger unlawful collaboration between competitors, they need to remember that competition laws continue to apply.
But the health crisis has highlighted the need to give clearer guidance on competitor collaboration, especially to foster meaningful progress on both sustainability and digital competition.
“Authorities have shown welcome flexibility and speed to allow temporary and necessary business cooperation in response to the pandemic. As we head into the recovery and competition authorities review their rules, now is a good time for companies to continue the dialogue with the competition authorities on long-term safe harbour rules for positive cooperation.”
Daniela Seeliger
Partner, Düsseldorf
“Despite competition law’s inherent flexibility, the pandemic spotlighted the existing need for explicit guidance on two areas of collaboration: to achieve important sustainability goals and to enable data-sharing between tech companies to enhance digital competition. We expect to see accelerated progress in these areas, especially in the EU.”
Thomas Elkins
Partner, Paris
Other topics in our series
The sprint towards ever greater state interventionism
14 września 2020
State interventionism is on the rise globally, but what does this mean for companies, especially in the context of the recovery? We expect more foreign investment control and protectionism especially in the tech and healthcare sectors, companies delivering on governments’ sustainability agendas and authorities imposing more invasive commitments. Here’s why.
Playing politics with distressed M&A
16 września 2020
The checks and balances of the merger control process are never more important than in times of crisis. But we are already seeing signs that crisis-driven M&A reviews will face intense political pressure. Meanwhile authorities have been bracing themselves for a surge in failing firm defence claims. Traditionally met with scepticism, will they gain traction through the Covid-19 lens?
Capitalising on a crisis – Competition, market power and exploitation
17 września 2020
With our increased reliance on technology and concerns around access to essential products, competition policy is tasked with urgently answering fundamental questions about consumer welfare and fairness. In a way that we haven’t seen before, consumer interests are having an immediate impact on political agendas – with major consequences for competition policy and enforcement.
Explore our Summer’s Top Competition Stories content
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