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Do You Think the Green Deal and Cartel Agreements Have Nothing in Common? Have a Second Guess

Do You Think the Green Deal and Cartel Agreements Have Nothing in Common? Have a Second Guess

Czech Republic
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The Green Deal for Europe aims to boost the efficient use of resources, helps to keep sustainable environment policy and transforms particular economies of the EU countries by reducing greenhouse gas emissions, by rebuilding immovables in order to reach higher level of energy sustainability, by introducing products with longer sustainability time, by developing products that may be easily recycled, by combating global deforestation, and much more.

Can you see any link between the green goals and the "prohibited" cartel agreements?

Yes, the two do have a significant interconnection. In case “cartel” agreements between competitors aim to achieve sustainable growth (such as improving product quality, innovating production processes), real consumers’ welfare may, under certain conditions, prevail potential anti-competitive object of such an agreement. In other words, such a cartel is approved. Practical guide how to assess the “green cartel agreements” should be developed by particular EU competition authorities. The Czech Competition Authority is currently rather sceptical about the given "exception" to the cartel agreements. Nevertheless, Competition Authorities in other EU countries have already advocated similar principles, such as the pioneer, the Dutch Competition Authority.

By Vladena Svobodova, Senior Associate, JSK, PONTES