Revision of competition rules on horizontal agreements

The document argues that EU competition rules should move away from a "full compensation" theory for consumers and instead adopt a "fair share" approach to enable businesses to cooperate on climate and sustainability goals. It emphasizes that environmental benefits for society should be considered when granting exemptions under Article 101(3) TFEU, even if individual in-market consumers do not receive direct benefits. The authors also address the distinction between genuine sustainability cooperation and greenwashing, and call for greater transparency in the Commission's guidance to businesses.

• The authors argue that the European Commission's current approach requiring consumers in the market to be "fully compensated" for sustainability agreements is inconsistent with Article 101(3) TFEU and the "polluter pays" principle.
• ClientEarth advocates for a "fair share" approach where environmental results for society can justify an exemption even if no direct benefits accrue to individual purchasers in the market.
• The document asserts that cooperation for sustainability should be permitted if it produces positive outcomes that exceed existing legal obligations, as merely facilitating compliance with the law should not normally qualify for an exemption.
• The authors suggest that the Commission should not rely solely on the ability to quantify benefits in monetary terms, as an excessive focus on quantification could deter small businesses or ignore qualitative efficiencies.
• Regarding greenwashing, the document argues that while it is primarily a consumer protection issue, the Commission should treat cartels disguised as sustainability agreements as restrictions "by object" and apply higher fines.
• The authors call for the European Commission to increase transparency by publishing non-confidential versions of individual guidance letters provided to businesses.

APA

Holmes, S. (2021). Revision of competition rules on horizontal agreements. ClientEarth. https://www.clientearth.org/media/3c4lsaex/clientearth-and-s-holmes-contribution-horizontal-agreements-04-10-2021.pdf

Chicago

Holmes, Simon. Revision of competition rules on horizontal agreements. ClientEarth, 2021. https://www.clientearth.org/media/3c4lsaex/clientearth-and-s-holmes-contribution-horizontal-agreements-04-10-2021.pdf.

Wikipedia

{{cite press release |last1=Holmes |first1=Simon |title=Revision of competition rules on horizontal agreements |publisher=ClientEarth |date=October 2021 |url=https://www.clientearth.org/media/3c4lsaex/clientearth-and-s-holmes-contribution-horizontal-agreements-04-10-2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{holmes2021revision, author = {Holmes, Simon}, title = {{Revision of competition rules on horizontal agreements}}, publisher = {ClientEarth}, year = {2021}, month = oct, url = {https://www.clientearth.org/media/3c4lsaex/clientearth-and-s-holmes-contribution-horizontal-agreements-04-10-2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }