DOW JONES NEWSWIRES
The European Union is targeting companies that attempt to
capture a market by withholding access or imposing standards that
make life difficult for competitors, said Competition Commissioner
Joaquin Almunia Friday in Washington.
"This is why I have opened an investigation on the
standard-setting activities of major banks with respect to the
development of electronic payments," said Almunia.
The European Commission has also launched antitrust
investigations into credit default swaps and the distribution of
trading data to promote transparency, he added.
"Markets cannot function properly if the basic information about
supply, demand and price is not accessible to all participants.
Such opacity creates unfair conditions and may ultimately lead to
market manipulation," said Almunia.
One case stems from EU concerns of a cartel among companies
trading financial derivatives linked to the Euro Interbank Offered
Rate, or EURIBOR.
"Given the number and value of transactions in interest-rate
derivatives and the crucial role these products play in the
management of risk, any confirmed manipulation of these interest
rates would imply a very significant cost to the European economy,"
said Almunia.
Almunia added that he hoped the recent prohibition of the merger
between Deutsche Boerse AG (DB1XE)and NYSE Euronext (NYX) sent a
clear message on the importance of transparency.
"The deal would have created a quasi-monopolistic player with
the clout to dictate commercial conditions on thousands of firms
operating with European derivatives," he said.
-By Riva Froymovich, Dow Jones Newswires; +32 (0)2 741 1489;
riva.froymovich@dowjones.com