Fuel Sector – Violation of Competition Law

A recent decision of the Office for Competition found there to be a violation of the competition law rules in a vertical agreement, which took effect when a fuel station, having reduced its price for diesel from a particular supplier, later raised its price again, having succumbed to pressure from that supplier in order to do so.

The Office found there to be a violation of competition law in terms of there being an agreement to maintain high prices for the said diesel. The supplier violated the law in submitting the fuel station owner to raise its prices (and thus to reverse the price reduction). The fuel station owner, to a lesser extent, was declared to have violated competition law by succumbing to that pressure.

This, and other decisions of the Office for Competition, can be downloaded Decisions of the Office for Competition.

Such decisions are subject to appeal to the Consumer and Competition Appeals Tribunal.

By virtue of a recent Constitutional Court judgment, the Office for Competition is currently unable to impose fines when finding infringements of competition law.

Google – EU competition law breach accusations

The European Commission sent a statement of objections to the tech firm, alleging that it has breached EU competition law.

Google is accused of placing onerous requirements on firms using Android and stifling competition.

Google has 12 weeks within which to reply and, if found to be abusing its dominant position, could face large fines and have to change its practices with respect to companies opting to obtain a licence to use its apps on their products (smartphones).

Read the BBC article here.

Article 102 of the Treaty on the Functioning of the European Unioni prohibits abuses of dominant positions as follows:

Any abuse by one or more undertakings of a dominant position within the internal market or in a substantial part of it shall be prohibited as incompatible with the internal market in so far as it may affect trade between Member States.

Such abuse may, in particular, consist in:

(a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;

(b) limiting production, markets or technical development to the prejudice of consumers;

(c) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;

(d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

In particular, under established case law, a dominant position has been defined as:

[…] a position of economic strength enjoyed by an undertaking which enables it to prevent effective competition being maintained on the relevant market by giving it the power to behave to an appreciable extent independently of its competitors, customers and ultimately of its consumers.

In general a dominant position derives from a combination of several factors which, taken separately, are not necessarily determinative.

This definition has now been adopted widely as the concise definition on which dominance is assessed in case law.

The Court of Justice of the European Union publishes its case law here.

EU Single Market Forum to be modernised over 2016

Note: This post reflects insights from the 2016 EU Single Market Forum. It has been retained for archival purposes.

The Government has issued a press release on the new EU Single Market Forum, one of the Commission’s agenda items for 2016.

One of the aims of the European Commission for 2016 is to modernize the current Single Market Strategy. The Ministry for the Economy, Investment and Small Business, in collaboration with GRTU and the Malta Employer’s Association, held a seminar entitled “Single Market Forum – Tackling internal barriers to movement of goods and labour,” seeking to better gauge the  Maltese position and to listen to suggestions relating to policy changes.  The EU Single Market Forum aims to carry out these aims.

The full press release can be found here.

Deficiencies in Ships – Merchant Shipping Notice

This article discusses Merchant Shipping Notice 124 issued in 2015. Procedures and regulations may have changed since then. Please refer to the latest notices from Transport Malta for current information.

Transport Malta has recently issued a Merchant Shipping Notice to ships visiting US Ports.  It noted that many detentions arise from the deficiencies in terms of environmental protection and fire safety.

Therefore, Transport Malta requires ships to notify the relevant directorate of their intentions before entering US Ports. The Master and the ISM Manager are responsible to make this notification in the appropriate time.

MS Notices are issued regularly by Transport Malta as directions to ships and shipowners in the operation of their vessels, assisting better compliance with the laws and international conventions. They are published on the Transport Malta Website.

Thoughts on sanctions in the legal system

While reading the news on various media sites today, I have come across a number of irate comments by the general public, over fines which are either excessively high or excessively low. So yesterday, the news hit the media with a man who was fined 20 Euros for masturbating in public, decidedly a lewd act under Maltese criminal law, with minimum and maximum fines between 6.99 and 58 Euro. The fact that the amounts appear laughable is not the fault of the courts, but the fact that the fines have not been amended to reflect the current cost of living. I imagine that when they were originally drafted, they were quite high, to indicate the outrage that they would cause.

On the contrary, two people swimming in the nude in one of our bays were fined 100 Eur each – a far greater amount for a far less serious offence. Indeed, to my mind, the fact that a person swims in the nude (and often cannot be seen by anyone when under water anyway) cannot be offensive because this is how God made us – it would not bother me if they left me alone. I would, however, be very offended and uncomfortable (even at my age, no longer being a teenager) if a man (or even a woman, really) were to be masturbating in the open anywhere around me. I find it oppressive and harrassing, and yet fined at levels less than what probably was considered by the carefree nude bathers a natural pleasure without bothering anybody.

However, the trouble with this whole matter is the fact that no authority has sat with the Code of Police Laws, the Criminal Code and other legislation to evaluate the punitive measures, especially the pecuniary ones (though not only). In many cases, the value of the punishment (money and / or time) no longer reflects society’s morals. Possibly, in some cases, the fines or penalties should be increased – either in terms of monetary value or because their seriousness is now no longer overlooked. The same should happen (or rather, the reverse) for acts which are no longer considered to strike at the core of society’s values.

The core of this whole set of arguments is the legal maxim which we learnt at law school, indeed in our first year: that justice must not only be done, but must be manifestly done. While in many cases, comments seen on the public media are plain idiotic, the message behind them seems to be that there is far too much leniency (e.g. giving two suspended sentences, when the law only contemplates a first one, which should be followed by consecutive serving of these sentences if followed by another period). On the other hand, growing prison populations are a worldwide problem so that the courts are faced with the dilemma of how to sentence, in the knowledge that they ought to reserve such punishments for the harsher, or harshest of crimes. Indeed, prison grounds are known to have hardened or created criminals and it is in this perspective that the lesser sentences are meted out.

All in all, a balance still needs to be created, between appropriate financial penalties which would not cause derisory laughter, and between creating a rational balance between the action and the sanction. It is not an easy balance to achieve; it must start at the level of the legislator and be continued in court, with the prosecution (and defence) properly carrying out their roles in between in the interests of the delivery of justice to the people.

 

[The opinions of the author expressed in this article are her own personal views and are in no way endorsed by any authority or entity. They are served as an expression of academic and social thought only, and are not sought to garner any political argument. Political comments, particularly partisan politics, and irrelevant or inane comments will be reported as spam and deleted.]