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Commission approves first B2B e-commerce marketplace


The European Commission has authorised the creation of a joint venture, MyAircraft.com, set up by US-based companies United Technologies Corp. and Honeywell International Inc. MyAircraft.com is the first B2B (business-to-business) e-commerce marketplace to be approved by the Commission.

Both companies behind the venture are active in the manufacturing and selling of aerospace products and services and will via MyAircraft.com provide "one-stop shopping" and supply management functions for all aerospace participants. US-based company i2 will provide to MyAircraft.com the necessary software under a license agreement.

The deal was notified to the Commission on 3rd July under the European Union's Merger Regulation, or merger control law. After reviewing this B2B exchange the Commission concluded that the operation would not give rise to competition concerns. The Commission said yesterday that MyAircraft.com is seen by third parties as a tool to make operations within the aerospace sector quicker, more efficient and less costly.

The Commission said it took into consideration the relatively high number of other B2B market places in the same sector that are already operating or which have been announced. Its conclusion was that MyAircraft.com will in all likelihood face strong competition from other similar web-sites.

MyAircraft.com was examined under the EU's Merger Regulation because it will be a full-function venture jointly controlled by its parent companies. However, not all B2B electronic market places will qualify for review under the Merger Regulation. B2B electronic market places set up by single companies, for example, would not fall under the regulation because there would be no concentration. Again, if the parents do not exercise control over the strategic commercial decisions of a joint venture then there is no concentration in the sense of the Merger Regulation and hence the operation would not be reviewed under the Regulation.

The next B2B site to be considered by Europe’s competition authorities is expected to be Covisint, a car parts marketplace planned by Ford, General Motors, Daimler/Chrysler and Renault/Nissan. The venture is presently being scrutinised by the US Federal Trade Commission.

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