On 8th August, 2000the European Commission issued its first clearance decision (atPhase I of the investigation process) on a business to business(B2B) internet marketplace (see "B2B: overcoming theantitrust concerns" in this issue). US based UnitedTechnologies Corporation and Honeywell International Inc,competing suppliers of aeronautical products and services, soughtclearance to establish MyAircraft.com as an internet marketplacefor B2B sales of their products and services to the industry. Thejoint venture qualified for review under the EC Merger Regulation(4069/89/EEC). The Commission noted that third partiessaw the internet portal as a tool to make operations cheaper andmore efficient. It also observed that there were a high number ofB2B marketplaces in existence or soon to be introduced in thesector. Therefore, MyAircraft.com is likely to face strongcompetition in this niche market. The potential anti-competitiveeffects of competitors establishing internet marketplaces iscurrently under examination in a number of jurisdictions. In May2000, the UK's OFT announced that it had commissioned FrontierEconomics to report to it on the competition implications ofe-commerce. Although the Commission has warned that thisclearance decision should not be regarded as a carte blanche forall future internet exchanges and B2B portals, the decision is awelcome confirmation that the establishment of e-commercemarketplaces will not necessarily cause competitionproblems.

Source: European Commission pressrelease, 7th August, 2000; Wall Street Journal, 8th August, 2000;Speech by John S Bridgeman, Director General of Fair Trading, tothe Third International Travel and Tourism: Policy, Law andManagement Conference; "The Travel Industry: Consumers andCompetition, Today and Tomorrow", 8th May, 2000. CliffordChance