Pierre Regibeau spoke at a conference yesterday hosted by UIB, where the Faculty of Economics and Business welcomed him as a guest speaker.
What is the role of the head of the competition department? Is this tied to the European Commission?
The position has three core functions. First, to assist teams working on cases, especially with statistical analysis. Second, to perform independent assessments at each stage of a case and present opinions to the commissioner. Third, to review texts about possible abuses in the field of competition and respond quickly when situations arise that require immediate action.
Regarding the February announcement that Iberia would acquire Air Europa for 500 million euros, with the deal pending regulatory approval, when will the review begin?
Even though the process is early, the review has already started.
What exactly will be analyzed in this review?
This is not the first time this case has come up, and there is a clear plan for what to study. For example, investigators will examine the routes each airline currently serves, since the operation could reduce competition on certain routes from three airlines to two. The goal is to ensure that other carriers will step in to preserve competition, potentially introducing a third airline and committing to remain for three or four years.
Are there concerns about losing routes?
Yes. Routes might not disappear entirely, but competition could weaken. A related issue is the Madrid hub formed by Iberia and Air Europa. If the operation concentrates traffic in one hub, other carriers, such as Ryanair, could face disadvantages if they are not part of that hub network.
What about the Balearic Islands? Do concerns about dependence on aircraft and the risk of losing routes apply there, or in Brussels?
Islands have their own rules, and the European Commission would worry about any risk that air links to the islands could be reduced. If a decision is needed, priority will be given to maintaining island connectivity over continental routes.
What calendar is the investigation following? When can a solution be expected?
There is a deadline, but in complex cases the process can be paused to request information or to grant more time. A reasonable expectation is that a solution could emerge within a year.
In recent times Google faced a record fine of 4 billion 343 million euros for abusing its market dominance. This was the highest penalty issued by a competition authority, yet some feel it was not proportional for such a large company.
Fines alone do not always change corporate behavior. Clear rules, such as those in the Digital Markets Regulation, aim to prevent misuse by outlining what is permissible and what is not. If rules are breached, dissolution may be considered. In many cases, these rules prove more effective than fines alone.
The department has also scrutinized Amazon for potential misuses of customer data, though in that case the company avoided fines by reaching a settlement with the European Commission. Is big tech acting without constraint?
Not at all. Investigations can arise spontaneously, and tips from other companies or markets can trigger scrutiny. If anything goes wrong, the information comes to light and is examined carefully.
Is there pressure to steer investigations in a particular direction?
No. There are pressures in Brussels, but not at the level of the department. The competition office operates with a strong degree of independence.
In the Balearic Islands, foreigners often dominate housing purchases, and locals struggle to compete due to higher buying power. Are there any limits under discussion?
That issue does not fall within this department’s remit. However, a hypothetical limitation could discriminate against residents of the European Union, which is a consideration to weigh carefully.
What about the presence of large tourist rental platforms like Airbnb in areas such as the Balearic Islands? Are there regulatory moves expected?
Local authorities hold the power to regulate activities of such platforms. Typically, it is not within the competition authority’s jurisdiction to propose specific regulations for platforms like Airbnb.