Standard Setting 2010 - OECD

1 Standard Setting 2010 The OECD Competition Committee debated competitive restrictions in Standard Setting in june 2010 . This document includes an executive summary and the documents from the meeting: an analytical note by Sean F. Ennis for the OECD, written submissions from Australia, Brazil, Bulgaria, Chile, the European Union, Germany, Greece, Ireland, Italy, Japan, Korea, Spain, South Africa, Chinese Taipei, Turkey, the United Kingdom, the United States, BIAC and ANSI. Standard Setting yields substantial benefits to consumers and often promotes competition to benefit consumers. Nonetheless, at times, Standard Setting can give rise to potential consumer harms. By bringing together different players in an industry, the Standard Setting process provides an opportunity for collusion, deception and strategy about which regulators must be vigilant and proactive.

2 The roundtable found that a Standard Setting organisation should represent divergent economic interests including the public sector and consumers in order to avoid problems such as those that may arise when only a restricted set of producers runs the Standard Setting process. Competition law is suitable for addressing only some of the harms to competition. The others may be combated using other legal avenues or in the system for obtaining patents. A particular challenge arises in the case of patent ambushes, when a party with a patent hides that from a Standard Setting organisation or even steers the Standard Setting organisation to embody the patent within a Standard , and then, once a Standard is agreed, asserts its patent rights to obtain high royalties. Other remedies beside competition law also exist. Policy makers need to decide whether potential competition problems need attention and, if so, how such problems can be resolved appropriately.

3 Competition, Patents and Innovation II (2009) Unclassified DAF/COMP( 2010 )33 Organisation de Coop ration et de D veloppement conomiques Organisation for Economic Co-operation and Development 08-Mar-2011 _____ English, French DIRECTORATE FOR FINANCIAL AND ENTERPRISE AFFAIRS COMPETITION COMMITTEE Standard Setting JT03297759 Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format DAF/COMP( 2010 )33 Unclassified English, French DAF/COMP( 2010 )33 2 FOREWORD This document comprises proceedings in the original languages of a Roundtable on Standard Setting held by the Competition Committee (Working Party No. 2 on Competition and Regulation) in june 2010 . It is published under the responsibility of the Secretary General of the OECD to bring information on this topic to the attention of a wider audience.

4 This compilation is one of a series of publications entitled "Competition Policy Roundtables". PR FACE Ce document rassemble la documentation dans la langue d'origine dans laquelle elle a t soumise, relative une table ronde sur la Normalisation qui s'est tenue en juin 2010 dans le cadre du Comit de la concurrence (Groupe de Travail No. 2 sur la Concurrence et la R glementation). Il est publi sous la responsabilit du Secr taire g n ral de l'OCDE, afin de porter la connaissance d'un large public les l ments d'information qui ont t r unis cette occasion. Cette compilation fait partie de la s rie intitul e "Les tables rondes sur la politique de la concurrence". Visit our Internet Site -- Consultez notre site Internet DAF/COMP( 2010 )33 3 OTHER TITLES SERIES ROUNDTABLES ON COMPETITION POLICY 1.

5 Competition Policy and Environment OCDE/GD(96)22 2. Failing Firm Defence OCDE/GD(96)23 3. Competition Policy and Film Distribution OCDE/GD(96)60 4. Competition Policy and Efficiency Claims in Horizontal Agreements OCDE/GD(96)65 5. The Essential Facilities Concept OCDE/GD(96)113 6. Competition in Telecommunications OCDE/GD(96)114 7. The Reform of International Satellite Organisations OCDE/GD(96)123 8. Abuse of Dominance and Monopolisation OCDE/GD(96)131 9. Application of Competition Policy to High Tech Markets OCDE/GD(97)44 10. General Cartel Bans: Criteria for Exemption for Small and Medium-sized Enterprises OCDE/GD(97)53 11. Competition Issues related to Sports OCDE/GD(97)128 12. Application of Competition Policy to the Electricity Sector OCDE/GD(97)132 13. Judicial Enforcement of Competition Law OCDE/GD(97)200 14.

6 Resale Price Maintenance OCDE/GD(97)229 15. Railways: Structure, Regulation and Competition Policy DAFFE/CLP(98)1 16. Competition Policy and International Airport Services DAFFE/CLP(98)3 17. Enhancing the Role of Competition in the Regulation of Banks DAFFE/CLP(98)16 18. Competition Policy and Intellectual Property Rights DAFFE/CLP(98)18 19. Competition and Related Regulation Issues in the Insurance Industry DAFFE/CLP(98)20 20. Competition Policy and Procurement Markets DAFFE/CLP(99)3 21. Regulation and Competition Issues in Broadcasting in the light of Convergence DAFFE/CLP(99)1 22. Relationship between Regulators and Competition Authorities DAFFE/CLP(99)8 23. Buying Power of Multiproduct Retailers DAFFE/CLP(99)21 24. Promoting Competition in Postal Services DAFFE/CLP(99)22 25. Oligopoly DAFFE/CLP(99)25 26. Airline Mergers and Alliances DAFFE/CLP(2000)1 27.

7 Competition in Professional Services DAFFE/CLP(2000)2 28. Competition in Local Services DAFFE/CLP(2000)13 29. Mergers in Financial Services DAFFE/CLP(2000)17 30. Promoting Competition in the Natural Gas Industry DAFFE/CLP(2000)18 31. Competition Issues in Electronic Commerce DAFFE/CLP(2000)32 32. Competition and Regulation Issues in the Pharmaceutical Industry DAFFE/CLP(2000)29 33. Competition Issues in Joint Ventures DAFFE/CLP(2000)33 34. Competition Issues in Road Transport DAFFE/CLP(2001)10 DAF/COMP( 2010 )33 4 35. Price Transparency DAFFE/CLP(2001)22 36. Competition Policy in Subsidies and State Aid DAFFE/CLP(2001)24 37. Portfolio Effects in Conglomerate Mergers DAFFE/COMP(2002)5 38. Competition and Regulation Issues in Telecommunications DAFFE/COMP(2002)6 39. Merger Review in Emerging High Innovation Markets DAFFE/COMP(2002)20 40.

8 Loyalty and Fidelity Discounts and Rebates DAFFE/COMP(2002)21 41. Communication by Competition Authorities DAFFE/COMP(2003)4 42. Substantive Criteria used for the Assessment of Mergers DAFFE/COMP(2003)5 43. Competition Issues in the Electricity Sector DAFFE/COMP(2003)14 44. Media Mergers DAFFE/COMP(2003)16 45. Universal Service Obligations DAF/COMP( 2010 )13 46. Competition and Regulation in the Water Sector DAFFE/COMP(2004)20 47. Regulating Market Activities by Public Sector DAF/COMP(2004)36 48. Merger Remedies DAF/COMP(2004)21 49. Cartels: Sanctions against Individuals DAF/COMP(2004)39 50. Intellectual Property Rights DAF/COMP(2004)24 51. Predatory Foreclosure DAF/COMP(2005)14 52. Competition and Regulation in Agriculture: Monopsony Buying and Joint Selling DAF/COMP(2005)44 53. Enhancing Beneficial Competition in the Health Professions DAF/COMP(2005)45 54.

9 Evaluation of the Actions and Resources of Competition Authorities DAF/COMP(2005)30 55. Structural Reform in the Rail Industry DAF/COMP(2005)46 56. Competition on the Merits DAF/COMP(2005)27 57. Resale Below Cost Laws and Regulations DAF/COMP(2005)43 58. Barriers to Entry DAF/COMP(2005)42 59. Prosecuting Cartels without Direct Evidence of Agreement DAF/COMP/GF(2006)7 60. The Impact of Substitute Services on Regulation DAF/COMP(2006)18 61. Competition in the Provision of Hospital Services DAF/COMP(2006)20 62. Access to key Transport Facilities DAF/COMP(2006)29 63. Environmental Regulation and Competition DAF/COMP(2006)30 64. Concessions DAF/COMP/GF(2006)6 65. Remedies and Sanctions DAF/COMP(2006)19 66. Competition in Bidding Markets DAF/COMP(2006)31 67. Competition and Efficient Usage of Payment cards DAF/COMP(2006)32 68.

10 Vertical mergers DAF/COMP(2007)21 69. Competition and Regulation in Retail Banking DAF/COMP(2006)33 70. Improving Competition in Real Estate Transactions DAF/COMP(2007)36 71. Public Procurement The Role of Competition Authorities in Promoting Competition DAF/COMP(2007)34 72. Competition, Patents and Innovation DAF/COMP(2007)40 73. Private Remedies DAF/COMP(2006)34 DAF/COMP( 2010 )33 5 74. Energy Security and Competition Policy DAF/COMP(2007)35 75. Plea Bargaining Settlement of Cartel Cases DAF/COMP(2007)38 76. Competitive Restrictions in Legal Professions DAF/COMP(2007)39 77. Dynamic Efficiencies in Merger Analysis DAF/COMP(2007)41 78. Guidance to Business on Monopolisation and Abuse of Dominance DAF/COMP(2007)43 79. The Interface between Competition and Consumer Policies DAF/COMP/GF(2008)10 80. Facilitating Practices in Oligopolies DAF/COMP(2008)24 81.