EU Merger Control

Yvonne Fovargue Excerpts

Tuesday 3rd November 2015 General Committees

[The Chair]

We now have until 3.35 pm for questions to the Minister. Hon. Members’ questions should be brief. It is open to Members, subject to my discretion, to ask supplementary questions.

[Yvonne Fovargue (Makerfield) (Lab)]

I have just one question on the digital issue. Much of the EU merger law is based on turnover. Digital quite often has lower turnover, but a high customer base. Does the Minister feel that that has been taken sufficiently into account in this document?

[Nick Boles]

I am not aware that the White Paper proposals have any specific application to digital industries, but if they do, I will be happy to write to the hon. Lady and the rest of the Committee, or perhaps she would like to explain the issue further. I was not aware of any specific proposal in relation to digital industries on minority shareholdings or these other referral requirements.

[Yvonne Fovargue]

That is the point. There is nothing referring to digital, but there is a lot about company turnover. As I said, digital turnover can be quite low, but the customer base is very high. Does the Minister feel that perhaps there should be something referring to the digital industry, which has a different sort of customer base and turnover?

[Nick Boles]

Certainly, we have not suggested that in our response to the White Paper, and I do not believe that it is a position that we would want actively to promote, but if the hon. Lady wants to make representations to me or to the Government generally on the issue, I will be happy to consider them.

--- Later in debate ---

[Yvonne Fovargue]

I am pleased to attend this Committee, the first European Committee I have attended, because too often the role of the EU in consumer protection is forgotten, along with many of the other things it does. My hon. Friend the Member for Luton North was right to highlight the protection of workers in mergers, as well as of consumers and businesses, and I am pleased that a lot of the rules are based on those in the UK; the Competition and Markets Authority has done a good job for us in the past.

I ask, though, that we ensure that digital businesses are considered. EU mergers rules are often based on turnover. It is important that the EU looks ahead to what might happen in future and that digital businesses with low turnover but a high customer base are included in the rules. The future advances in business might be the part, referred to by the hon. Member for North East Somerset, that the EU might wish to look at. We know that the landscape can change dramatically.

The review has been sensible, and I am pleased that the needs of everyone—businesses, workers and consumers—have been taken into account.