Category: Archive – 2009

The European Commission is calling for comments on its proposal for a revised Block Exemption Regulation and Guidelines on supply and distribution agreements (vertical restraints). The current Regulation is due to expire in May 2010. Based on its experience in their application and on stakeholders' comments, the Commission considers that the rules are working well overall and should not be fundamentally modified. The main suggestions for amendments intend to take account of recent market developments, in particular the increased buyer power of big retailers and the evolution of on-line sales on the Internet. Interested parties are invited to submit comments until 28^th September 2009.

Competition Commissioner Neelie Kroes stated: "Competitive and efficient distribution are essential for consumer welfare and for our economy. The review launched today aims to ensure that the assessment of supply and distribution agreements under the competition rules takes account of recent market developments, namely further increased market power at the level of buyers  and new forms of distribution including  the opportunities brought by the Internet".

Commission Block Exemption Regulation N° 2790/1999 ensures that supply and distribution agreements that comply with its provisions benefit from an exemption from the EC Treaty's ban on restrictive business practices (Article 81(1). The current Block Exemption Regulation on vertical restraints expires in May 2010. The Commission's preliminary assessment of its application, based on experience and feedback from stakeholders, found that the current rules have worked well in practice.

At the time of its adoption in 1999, the Regulation aimed at considerably reducing the regulatory burden on companies, in particular companies without the ability to raise prices without a loss of profit (i.e. with no market power), like SMEs, and at introducing an effects-based approach to the assessment of vertical restraints. These objectives and concerns remain valid today.

Two major developments have marked the ten-year period following the entry into force of the current rules: a further increase in large distributors' market power and sales on the Internet.

To take account of these developments, the Commission proposes that for a vertical agreement to benefit from the block exemption, not only the supplier's market share (as is currently the case) but also the buyer's market share should not exceed 30%.

Regarding on-line sales, on the one hand there is a need to protect consumers' possibilities to purchase to their advantage across borders, which is greatly facilitated by the Internet. On the other hand, certain sales restrictions that aim at limiting or preventing distributors from taking unfair advantage of marketing and brand promotion undertaken by others (i.e. free riding) may enable consumers to benefit from better services. The Commission's suggested approach therefore refines, in the on-line context, the distinction, between sales made as a result of active marketing and sales made as a result of the consumer taking the initiative (i.e. between active and passive sales), and explains how the revised Regulation would deal with conditions imposed in relation to internet sales, such as a requirement imposed by a supplier that the distributor should have a "brick and mortar" shop before engaging in online sales.

The Commission invites interested third parties to comment by 28^th September 2009. The consultation covers all issues dealt with by the Regulation and the Guidelines, but the Commission seeks in particular comments on the overall functioning of the current rules, the extent to which recent market developments should impact on the Regulation and the Commission's suggested approach concerning buyers' market power and restrictions on on-line sales. The draft revised Block Exemption Regulation and Guidelines are available on the Europa website at:

http://ec.europa.eu/competition/consultations/2009_vertical_agreements/index.html

 

 

Iceland handed in an application to join the European Union to the Swedish EU presidency, an Icelandic foreign ministry spokeswoman said. Iceland's parliament narrowly backed the government's plan to begin talks to join the 27-nation bloc, months after a meltdown of the north Atlantic island's economy amid the global financial crisis.

If voters agree to seek membership in a referendum and talks go well, political analysts have said Iceland could be the next to join the EU — jumping the queue ahead of southern European countries such as Croatia. Icelanders are however torn between feeling it may be best for the country and fears they could lose their independence to faraway Brussels. Recent opinion polls have indicated a small majority in Iceland in favour of joining the union. Iceland's path to Brussels may also not be entirely smooth because of differences over fisheries and disputes with some EU states over accounts in failed Icelandic banks.

 

The European Commission has adopted the eleventh update of the Community's list of airlines banned in the European Union which comprises those of two additional countries and lifts the ban imposed upon five airlines following satisfactory improvements in safety.

This list has greatly contributed to making Europe's skies safer. The new list replaces the previous one and can already be consulted on the Commission's website. The list acts a strong incentive to remedy safety deficiencies – withdrawal from the list is indeed possible, when the parties concerned put effectively in place sound corrective action to comply with all relevant safety standards.

The safety audits of the International Civil Aviation Organisation (ICAO) constitute a pillar and one of the common criteria which are used to impose an operating ban. Enhancing the cooperation in this area with ICAO is therefore essential. This was the key subject at a meeting held on 9 July between Commission Vice President Tajani and the President of ICAO's Council, Mr. Kobeh. A report later this year on the functioning of the rules will also contain proposals to strengthen the international dimension.

Read more here: http://ec.europa.eu/transport/air-ban/list_en.htm

GRTU Malta Chamber of SMEs deplores the increases announced in the price of gas cylinders.

The Malta Resources Authority has once again failed to stand up to its important obligation to defend the consumer and all the users of essential services by approving the increases requested by the suppliers of gas. Now with Government's approval the consumer is being burdened with yet another increase which surpasses the last increase announced only a couple of months ago by more than 30%.

Several small and medium enterprises that supply products or services that require the use of gas, of which we have seen the increase as during the last years many have decided to switch from electricity to gas, will be hardly hit and in today's circumstances cannot afford to increase their prices to make up for the increase in the price of gas. This increase will also be effecting consumers  who will have to further reduce their spending to make up for the increase: once again an unneeded increase in the worse time possible.

The prise of gas form last April has now increased by more than 90% for the consumer. Once again we are experiencing a privatisation exercise which instead of giving advantage to the consumer and the industrial and commercial user is giving an advantage only to Government.

GRTU believes that Government is falling short from the obligations the European Community has recently passed on to it, amongst which that where anything Government does and implements in no way should create difficulties to small and medium businesses that are the backbone of both the European and the Maltese Economy.

This at a time when the European Union has just approved an economic package targeted specifically at the smaller and medium sized enterprises and just a couple of weeks following GRTU's presentation to the Prime Minister and the Cabinet of Ministers with a package of proposals of how should the stimulants for the Maltese  businesses should be.

lMedicines Recall – Rhinathiol® (carbocisteine) 2% sugar free for children and infants.

The Inspectorate and Enforcement Directorate within the Medicines Authority received a Medicinal Defect Report warranting a recall.

The recall is being carried out by Sanofi-Aventis Malta Ltd. (Marketing Authorisation Holder) in collaboration with Charles de Giorgio Ltd. (the local distributor of the Marketing Authorisation Holder) under the supervision of the Medicines Authority.

A recall of all batches of the product is being effected due to possible microbial contamination.

Therefore patients are being  notified to return all Rhinathiol® 2% sugar free syrup to the pharmacy from where it was purchased.

All other presentations of Rhinathiol^® (carbocisteine) on the local market are not affected.

If you require any information, please phone on 23439117.

 

 

Art & Design Exhibition

 

1st August-23rd August 2009-Citadelle Art Centre

Gallery

                                       25th August-5th September 2009-Corinthia Palace Hotel Attard

Malta Enterprise together with the collaboration of GRTU and other parties will be leading a business delegation to Stockholm and Copenhagen during the last week of September (27th Sep-3rd Oct)

Both markets offer unique opportunities for business cooperation in imports/exports, technology transfer and foreign direct investment. Country profiles can be obtained on request from Abigail Mamo

 

Promising areas for investment, trade and technology commercialisation with Denmark and Sweden include: pharmaceuticals, medical products, research and development, software development, telecommunication equipment and services, education and training, financial services, online gaming, travel and tourism, real estate and clean energy. Malta Enterprise will endeavour to organise match-making meetings for participants through its networking institutions however you are also invited to make your own appointments to complement those of Malta Enterprise.

To assist companies in the expenses required in participating in this event, Malta Enterprise will refund around 50% of the costs involved (flight and accommodation) for one representative per company, provided this representative participates in the official programme. Should you be interested in participating kindly contact Abigail Mamo from GRTU on 21 232 881/3 or .

 

 

The Rent Reform has passed through Parliament on Friday the 19^th June. Unfortunately none of our well thought recommendations have been included, even though we were led to think otherwise. The greatest changes that will occur are the following:

Pre-1995 commercial contracts unless a different agreement is reached after 1^st Jan 2010 or agreed in writing prior to 1^st June 1995

1^st Jan 2010 rent will increase by a fixed rate of 15%. The 15% shall increase on the 1^st of June of each year up till 31^st December 2013

On 1^st Jan 2014 rent must be agreed upon between the parties. If no agreement is reached any party may apply to the Rent Board to fix the fair rent, established according to the Property Market Value Index

If an agreement existed where rent had periodic increases, such agreement will continue to apply without any increases

2. Contract renewals

A commercial contract made before 1^st June 1995 shall in any case terminate within twenty years from 1^st June 2008 unless another contract or lease has been made laying down a specific period.

A commercial contract made before 1^st June 1995 for a specific period not yet lapsed on 1^st January 2010 and on the original date "di fermo" or "di rispetto" is still running and where it has not automatically been extended by law, then the original period of lease shall continue to apply.

A contract made between the parties prior to the 1^st June 1995 that allows for automatic renewals shall be considered as a contract for an unspecified period and shall terminate within twenty years from 1^st June 2008

GRTU feels various points of this Act go against the basic rights of business owners as stipulated by law. GRTU will therefore take the matter to court and will file a Judicial Protest on behalf of its members being affected. We are placing this complaint to support your cause.

If you would like to be included in the protest and have GRTU file its complaint on your behalf you are kindly requested to contact Abigail Mamo at GRTU.

Only those included in the Judicial Protest will be entitled to any benefits we manage to win at court.

 

 

 

 

 

 

 

 

 

The EU's food industry is not excluded from today's economic downturn. To give this important industry sector fresh impetus,  European Commission Vice President Günter Verheugen and Commissioners Mariann Fischer Boel and Meglena Kuneva, discussed with stakeholders the follow up to the recommendations of the High level Group, which were issued  on 17^th March 2009. Vice President Verheugen and Commissioners Fischer Boel and Kuneva said: "We call upon industry and national authorities to help implement recommendations which should lead to a more competitive agro food sector for the benefit of consumers, farmers and the industry recommendations  which should help promote high quality food for European citizens."

 

Today's stakeholder meeting agreed on a Roadmap of Key Initiatives that engages the European Commission, the participating Member States and the stakeholders to implement in the near future coordinated actions, such as:

establishing a market surveillance mechanism of counterfeiting;

improvement of the transparency of the fixing of prices and contractual arrangements along the food supply chain;

a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) to assess the position of the European agro-food industry in the global market.

simplification of the administrative procedures, particularly for SMEs, for participation in research funding programmes;

setting up a social dialogue in the agro-food industry;

developing educational programmes which raise awareness of the importance of the agro-food industry;

setting up a European Forum to discuss the improvement of commercial relations among the players of the food chain, with the aim to adopt an EU wide code of conduct;

launching a study on the effects of retailers' own brands on the competitiveness of the agro-food industry, in particular on Small and Medium-Sized Enterprises (SMEs);

promotion of the instruments available for SMEs, e.g. Enterprise Europe Network;