SECTORS

1. Agriculture and Food

Some facts about an important sector of the economy.

Together, the distribution sector (wholesale and retail), the food and drink industry
(processing and manufacturing), and the agricultural sector are the driving forces of the
food supply chain and important economic sectors. The food and drink industry is the
EU's biggest manufacturing sector in terms of jobs and value added. In 2014, around 24
million people were employed in the EU food supply chain, representing approximately
10% of all EU employment. The total turnover of the food supply chain surpassed €3.9
trillion in the same year and generated an added value of around €700 billion (around
6% of the EU gross added value). Spending on food and non-alcoholic beverages
represents approximately 13% of the average EU household budget.

There is no single, homogeneous, and common food supply chain at the European level.
The length and the degree of complexity of food supply chains depend on the product
and market characteristics. The market structure varies at each level of the food supply
chain depending on the products and Member States concerned.

The Commission's competition department and the National Competition Authorities

in the European Competition Network (ECN) have been very active in food markets
over the last decade.

General application of competition rules

The competition rules for agricultural products (other than fisheries products) are set
out in Regulation 1308/2013 and as of 1 January 2018 also in Regulation 2017/2393.
Regulation 1308/2013 is known as the "Common Market Organisation (CMO)
Regulation", as amended by Regulation 2017/2393 as the "Omnibus Regulation". The
CMO Regulation sets out in its Article 206 that standard competition rules (defined by
Articles 101 to 106 TFEU) apply to agricultural products except for some derogations
set out in a number of other articles of the regulation. This memo describes the
derogations and standard competition rules that are applicable to agricultural
products before 1 January 2018.

The competition rules for fisheries products are set out in Regulation 1379/2013.
Under Article 40 of Regulation 1379/2013 standard competition rules apply to fishery
and aquaculture products. The Regulation also sets out some specific derogations.

Consumer goods
Consumer goods are items you buy for yourself or your home. This means products
like clothing and footwear; detergents, cosmetics and perfumes; household
appliances; watches and clocks; furniture; musical instruments; sports goods; toys and
tools.

If competition in the consumer goods sector is weak, people are directly affected
through reduced choice, higher prices and limited innovation. So, the European
Commission aims to safeguard competition for the benefit of consumers.

Energy and environment

During the 1990s, when most of the national electricity and natural gas markets were
still monopolized the European Union and the Member States decided to open these
markets to competition gradually.
A European Energy Union is one of the European Commission's priorities. Reliable
energy supplies at reasonable prices for businesses and consumers and with the
minimum environmental impact are crucial to the European economy.

More and more Member States are taking measures to secure the electricity supply.
These have an impact on competition in the internal electricity market. The European
Commission has launched a sector inquiry, established a Working Group with Member
States and started individual assessments of Member States' capacity aid schemes.

Financial services

The financial crisis that began in 2007 hit Europe very hard. The European Commission
has taken swift action since the beginning of the crisis to overcome it and to create a
more transparent and stable financial system. EU competition policy has a central role
to play, as the Commission works together with other public authorities to provide
legal certainty in the fields of State aid and merger control.

The Commission’s competition department works to enhance competition in these

markets, and has handled many antitrust, merger, and state aid cases in the financial
services sector.

Information Communication Technologies (ICT)

Information and Communication Technologies (ICTs) are one of the key drivers for
smart, sustainable and inclusive growth, according to the new economic strategy for
Europe "Europe 2020".
The Commission's Directorate-General for Competition closely monitors the
information industry, consumer electronics and internet sectors to ensure that market
players comply with EU competition law.
The focus is on stopping anti-competitive behaviour, to protect innovation and
consumer choice and ensure equal opportunities to compete.

Media

Motor vehicles

Postal services

Pharmaceuticals & Health Services

Competition is key to ensuring access to innovative and affordable healthcare
European citizens need access to innovative and affordable health products and
services. Effective competition means that pharmaceutical companies, medical devices
companies or other health-related companies compete on the basis of the qualities
and prices of their products and services, not through anticompetitive practices.
Effective competition incentivises companies to invest in the development of new
treatments and to apply prices that are more competitive. When such circumstances
prevail, citizens win.

The Commission monitors business practices in the pharmaceutical, health services

and medical devices markets and ensures that effective competition prevails.

The Commission’s main enforcement actions in antitrust and mergers in the

pharmaceutical sector are described in its Report on competition enforcement in the
pharmaceutical sector (2009-2017). The Report was drawn up in close co-operation
with the national competition authorities of the 28 EU Member States. It explains how
competition authorities in the EU are working together and how their enforcement
actions contribute to affordable and innovative medicines.

Professional services
Professional services (also known as "liberal professions") are loosely defined as
occupations requiring special training in the arts or sciences, such as lawyers, notaries,
engineers, architects, doctors, and accountants.

These professionals form an integral part of the EU economy. The services they
provide are essential to businesses and consumers, and this has a knock-on effect on
the competitiveness of other sectors.

A highly regulated sector

Some of these professions are closely regulated by national governments and
professional bodies, with varying restrictions on:

number of entrants into the profession

rates charged and billing arrangements
organisational structure of businesses providing professional services
exclusive rights enjoyed by practitioners
ability to advertise

Sports
Economic activities related to sport fall within the scope of EU law, including
competition law:

joint sale of sport media rights: the Commission has set forth the main principles in the
UEFA Champions League, the FA Premier League and Bundesliga decisions.

The Commission accepted the joint selling of sport media rights by football
associations on behalf of football clubs (as opposed to the sale of these rights by the
individual clubs themselves), provided certain conditions were fulfilled. These include,
inter alia, the sale of sport media rights through open and transparent tender
procedures, a limitation of the rights' duration (usually not exceeding three years) and
the breaking down of the rights into different packages to allow several competitors to
acquire rights.
Telecommunications

Transport