Commission rapped

Lawyers at the conference hit back at an EU official's description of the European Commission's anti-cartel work as a 'prosperous activity' and the competition directorate as a 'centre of profit'.

Olivier Guersent, head of the competition policy unit dealing with legal issues, told delegates that the commission had slapped anti-cartel fines on more than 100 companies totalling 2.8 billion (1.9 billion) since 1998.

But delegate Charles Lawton, Rio Tinto's legal adviser, said most people would be surprised by the remark about profit centres, 'which seemed to suggest that the commission sees this as payback time'.

He said: 'The whole concept of fines is intended to penalise the culprit and not to enrich the regulator.'

Michael Reynolds, a partner in Allen & Overy's Brussels office, added: 'I think he was slightly pulling our legs...

fines are imposed to deter and punish, and not to fund the competition directorate.'

Meanwhile Philip Lowe, the commission's director-general of competition, outlined the commission's proposals to modernise competition policy to account for further enlargement of the EU.

He said the commission would hire a chief economist to head an elite team of economists, which would consider the financial effects of potential mergers.

Mr Lawton said: 'The speech had a certain element of the commission going back into its shell [in the wake of overturned decisions on the Legrand/Schneider and First Choice/Airtours mergers last year], as if they are licking their wounds and asking if there is a way they can do better.'

Jeremy Fleming