In a previous article we informed you about the announcement of the Dutch Authority for Consumers and Markets (ACM) that there will be a relaxation of the application of Dutch competition law during the coronacrisis. Shortly after this announcement, the European Competition Network (ECN), the partnership of European competition authorities, issued a similar statement.
It is interesting to note that the ACM now has taken the opportunity to declare its positive view with respect to a joint initiative within an association of undertakings that otherwise would probably have been regarded as a restriction of competition.
“Corona voucher” ANVR travel organizations
ANVR, the trade association of travel organizations, has developed a “corona voucher” to prevent travel organizations from encountering major financial problems due to the many cancellations of planned trips. ANVR travel organizations can provide the voucher to consumers who have booked and paid for a package holiday, but cannot travel due to the current situation. Instead of receiving a refund, they will receive a voucher for the amount paid for the trip. This voucher is covered by a SGR guarantee against bankruptcy of the travel organization for one year after issue. If the consumer ultimately decides not to use the voucher, the travel organization, which issued the voucher, is obliged to reimburse the full value at the latest at the end of the SGR coverage period of one year after issue, but not earlier than 6 months after the issue of the voucher. It has been agreed that consumers can cash in the vouchers for a trip that starts after the relevant year. The tour operator may deviate from these conditions in favour of the consumer. Travel organizations will not charge any administrative fees.
The ACM understands
The ACM, which was involved in setting the conditions attached to the voucher, says it understands the benefits of issuing of the voucher. Edwin van Houten, director Consumers of the ACM: “We find ourselves in an exceptional situation that has negative effects on consumers and companies in the travel industry. Given this situation, we support this initiative.” The Ministry of Economic Affairs and Climate also supports the voucher. Mona Keijzer, the State Secretary of Economic Affairs and Climate, said on Twitter: “I call on consumers to accept the vouchers that travel organizations now offer for package holidays, such as the so-called Corona voucher from ANVR and SGR. This is how we prevent companies and organizations from going bankrupt: we need to do this together. And if there's really no other way, you can still get your money back.”
Normally, such agreements made within a trade association would be considered a restriction on competition because it could lead to coordination of the behaviour of members on the market. In competition law, in principle companies must determine their commercial policy independently.
Application of competition rules during the corona crisis
Statement European Competition Network
On 23 March 2020 ECN declared that there will be an easing of the application of competition rules in order to mitigate the major economic impact of the COVID-19 outbreak.
The ECN understands that – while the objective of a level playing field between companies in Europe remains relevant – this extraordinary situation may trigger the need for companies to cooperate in order to ensure the supply and fair distribution of scarce products to all consumers. In the current circumstances, the European competition authorities will not actively intervene against necessary and temporary measures put in place in order to avoid a shortage of supply. At the same time, the ECN emphasizes the importance that products considered essential in the current situation to protect consumer health remain available at competitive prices. The ECN will therefore not hesitate to take action against companies taking advantage of the current situation by forming a cartel or abusing their dominant position.
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