Clause 78 - European Commission's powers in
Communications Bill
6:30 pm
Mr Stephen Timms (Minister of State (e-Commerce & Competitiveness), Department of Trade and Industry; East Ham, Labour)
We talked this morning about the extent to which the market with which the Bill deals is increasingly international. Although the market is global rather than simply European, the European markets are significant. We have common rules for regulating the European markets, and in that context it is right that the Commission should play its part in their regulation within the bounds set for it by the directives. As the hon. Member for Ryedale said, such regulation is mandated by article 7(4) of the framework directive.
In any case, where Ofcom intends to identify a particular market or make a market power determination, during the period given for representations under clause 76 the European Commission may inform Ofcom that it believes that the proposed market identified in the notice or Ofcom's proposed market determination may not be compatible with the single European market or with any Community obligations. In that case, Ofcom must not give effect to its proposals for a further two months. Ofcom must withdraw its proposal if, in accordance with the procedure in article 7(4), the Commission decides within that two-month period that the proposal must be withdrawn.
If we are to have a single international market, there inevitably needs to be the possibility of such an intervention taking place. Of course, as the hon. Gentleman rightly says, that should be a possibility in every member state and certainly not only in the UK. I can give him the assurance that he was looking for because there is a firm commitment, which was reaffirmed at the European Council meeting in Brussels only a week or so ago, that every member state is committed to implementing the new telecommunications framework before 25 July. He can be confident that if there are any problems in that process there will be a good deal of pressure and sanction. There is a genuine European Union-wide commitment to implementing the directives, including that particular element of them. There is no getting away from the requirement in article 7(4) of the framework directive, which is very clear.
The hon. Gentleman asked what appeal would be available if someone were injured by a decision of the European Commission in those circumstances. The only way would be for the UK Government to take legal proceedings under the treaty to the European Court of Justice. I think that that would be unusual, but that arrangement is formally in place.
My hon. Friend the Member for Milton Keynes, North-East asked about the arrangements for the regulators' club, as he described it. There is no jurisdiction for such an institution, and the position that he hopes will apply there will apply. I certainly hope that the national regulatory agencies will be in touch with each other, sharing experiences and keeping each other informed. He rightly drew attention to concerns about arrangements in some countries. I hope that having a common regulatory framework right across Europe—every country is going through the process that this Bill take us through—will mean that there is much more transparency about such arrangements and relationships than there has been in the past. This whole process is an important step in the right direction, addressing the rather uneven pattern seen in Europe in the past.
Question put and agreed to.
Clause 78 ordered to stand part of the Bill.
Clause 79 ordered to stand part of the Bill.