TIME: Determined to Prove that No One Is Above the Law

	BUSINESS/PROFILE	JULY 6, 1998 VOL. 152 NO. 1
Determined to Prove that No One Is Above the Law By KARL VAN MIERT TIME: What do you think of the European Court ruling this week that the Commission erred in allowing France to give $3.33 billion to Air France? Van Miert: I must say I'm not unhappy about it, because it shows in a spectacular way that [we're right] when we tell national authorities that granting state aid is a serious business that can be attacked in the courts. TIME: Your banning of the Bertelsmann-Kirch digital TV venture renewed complaints that you target big companies. Van Miert: We've handled more than 800 cases this term. In only nine cases, including Bertelsmann-Kirch, have we said no outright. Some other deals fell apart when the partners quibbled. We had maybe 30 or 35 cases like the Boeing case, where remedies were offered that were good enough that we could reach a positive decision. In all the other cases, we have given authorization, in 90% of the cases within one month. That's the picture. So it's utterly unfair to pretend that from morning until evening we're fighting big mergers. TIME: You haven't always been such a staunch defender of competition. What happened? Van Miert: When I started in politics, people were talking about nationalization. Even then I said, no, that's the wrong way. I was not arguing as I am today in favor of liberalization, that's true as well. It wasn't in the air then. But gradually I discovered how badly some of the public monopolies functioned. When I first joined the Commission in January 1989, a lot of new colleagues needed telephones and were told they had to wait two or three months. If you had trade union support, you could get it in 24 hours. That's the way it worked. Clearly that had to be changed. And if you believe things have to be changed, you have to fight for it. TIME: Is the European Commission up to regulating firms that just keep getting bigger? Van Miert: There are two kinds of problem. Look at the Boeing case: only two players left, and only one of them was able to offer the whole range of aircraft. The choice is more and more limited, and that's a worrying trend. The second thing is companies becoming so powerful that if you touch them it becomes a state case. This was very apparent in the Boeing case, and to some extent in Bertelsmann-Kirch. TIME: You attract some harsh criticism from politicians. Van Miert: It is true recently, because of high-profile cases like the World Cup ticketing in France. You have to live with it. What is dear to our heart is to be able to demonstrate that what we do is coherent; that no one is above the law--no one, neither the biggest companies nor the biggest authorities.
time-webmaster@pathfinder.com

BUSINESS/PROFILE

JULY 6, 1998 VOL. 152 NO. 1

Determined to Prove that No One Is Above the Law

By KARL VAN MIERT

TIME: What do you think of the European Court ruling this week that the Commission erred in allowing France to give $3.33 billion to Air France?

Van Miert: I must say I'm not unhappy about it, because it shows in a spectacular way that [we're right] when we tell national authorities that granting state aid is a serious business that can be attacked in the courts.

TIME: Your banning of the Bertelsmann-Kirch digital TV venture renewed complaints that you target big companies.

Van Miert: We've handled more than 800 cases this term. In only nine cases, including Bertelsmann-Kirch, have we said no outright. Some other deals fell apart when the partners quibbled. We had maybe 30 or 35 cases like the Boeing case, where remedies were offered that were good enough that we could reach a positive decision. In all the other cases, we have given authorization, in 90% of the cases within one month. That's the picture. So it's utterly unfair to pretend that from morning until evening we're fighting big mergers.

TIME: You haven't always been such a staunch defender of competition. What happened?

Van Miert: When I started in politics, people were talking about nationalization. Even then I said, no, that's the wrong way. I was not arguing as I am today in favor of liberalization, that's true as well. It wasn't in the air then. But gradually I discovered how badly some of the public monopolies functioned. When I first joined the Commission in January 1989, a lot of new colleagues needed telephones and were told they had to wait two or three months. If you had trade union support, you could get it in 24 hours. That's the way it worked. Clearly that had to be changed. And if you believe things have to be changed, you have to fight for it.

TIME: Is the European Commission up to regulating firms that just keep getting bigger?

Van Miert: There are two kinds of problem. Look at the Boeing case: only two players left, and only one of them was able to offer the whole range of aircraft. The choice is more and more limited, and that's a worrying trend. The second thing is companies becoming so powerful that if you touch them it becomes a state case. This was very apparent in the Boeing case, and to some extent in Bertelsmann-Kirch.

TIME: You attract some harsh criticism from politicians.

Van Miert: It is true recently, because of high-profile cases like the World Cup ticketing in France. You have to live with it. What is dear to our heart is to be able to demonstrate that what we do is coherent; that no one is above the law--no one, neither the biggest companies nor the biggest authorities.

time-webmaster@pathfinder.com