Written by Cemal Karakas (2nd edition, updated on 26.9.2018),
Competition and consumer protection in the single market are often undermined by price discrimination based on residency. While many market players do not cooperate with the Commission, for instance not disclosing their pricing structure, Member States often do not have the means or the tools to collect and deliver the required information to the Commission. The SMIT proposal would provide the Commission with powers such as to request business-related information (e.g. cost structure or product volumes sold), and to address market failures in a more efficient way.
The SMIT, however, has raised some criticism in the Council and EP, inter alia, because of the Commission’s choice of the legal basis for the proposal. Parliament’s Legal Service stated in an opinion that the correct legal basis for the Commission proposal is Article 337 TFEU: a legal basis which gives no legislative role for the EP. On 12 July 2018, the IMCO committee adopted a report which would amend the proposal’s legal basis. The JURI committee subsequently adopted an opinion stating that the proposal goes beyond the powers available under this revised legal basis. This is due to be voted in plenary in October.
|Proposal for a Regulation of the European Parliament and of the Council setting out the conditions and procedure by which the Commission may request undertakings and associations of undertakings to provide information in relation to the internal market and related areas|
|Committee responsible:||Internal Market and Consumer Protection (IMCO)||COM(2017) 257
|Rapporteur:||Eva Maydell (EPP, Bulgaria)||2017/0087(COD)|
|Maria Grapini (S&D, Romania)
Richard Sulík (ECR, Slovakia)
Jasenko Selimovic (ALDE, Sweden)
Dennis De Jong (GUE/NGL, the Netherlands)
Igor Šoltes (Greens/EFA, Slovenia)
Robert Jarosław Iwaszkiewicz (EFDD, Poland)
Mylène Troszczynski (ENF, France)
|Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)|
|Next steps expected:||First-reading vote in plenary|