The European Commission has given its green light for an agreement between European, North American and Japanese companies in the sector of the information technologies, creating and administrating Stack International. This operation aims to promote quality and reliability by establishing a single product specification or supplier certification, which can be used in numerous sales by the certified to any number of buyers. It is also the object of Stack to promote market transparency by establishing indicative benchmarks for prices for particular components.
Background:
Stack is a non-profit company registered in the United Kingdom.
Its activities are defining generic specifications for components such as integrated circuits, memory circuits, memory modules, logic circuits, microprocessor circuits...Stack has been considered as a de facto industry standard throughout the world certifying compliance with that specification by individual products; defining a standard for manufactures of such components; certifying compliance by individual manufacturers with that standard; monitoring prices paid by member companies for such components; and reporting the resulting benchmark prices to them.
The elements of the Stack system are:
Stack comprises an important number of members or associate such, as for example, Siemens Nixdorf (Germany) Northern Telecom Smiths Industries, British Aerospace, Motorola, the Boeing Company.
The Commission has decided that the Stack organisation, where the European companies have played an important role, improves the production and distribution of goods, which are vital to today's markets. There is no restriction on competition as it does not provide for an exchange of commercially- sensitive information between competitors, The Commission has therefore closed the case with a so-called "comfort letter" (administrative letter from DG IV).
This article is based and incorporates information provided by the European Commission (Press releases) and is intended for general information. Specialist advice should be sought before acting on it.
Background:
Stack is a non-profit company registered in the United Kingdom.
Its activities are defining generic specifications for components such as integrated circuits, memory circuits, memory modules, logic circuits, microprocessor circuits...Stack has been considered as a de facto industry standard throughout the world certifying compliance with that specification by individual products; defining a standard for manufactures of such components; certifying compliance by individual manufacturers with that standard; monitoring prices paid by member companies for such components; and reporting the resulting benchmark prices to them.
The elements of the Stack system are:
- a) No restriction on the competitive choices of member companies as to what components they will buy, or from what suppliers; the suppliers in turn are free to seek certification or not, and are not required to give any particular consideration to Stack member companies.
- b) No exchange of commercially sensitive information. The agreement requires Stack to keep individual members' price information strictly confidential.
- c) It is not exclusive: associate membership of Stack is open to any interested company that is willing to observe appropriate rules and to pay a reasonable fee while even non-member companies can benefit from the existence of generic specifications and certified suppliers.
Stack comprises an important number of members or associate such, as for example, Siemens Nixdorf (Germany) Northern Telecom Smiths Industries, British Aerospace, Motorola, the Boeing Company.
The Commission has decided that the Stack organisation, where the European companies have played an important role, improves the production and distribution of goods, which are vital to today's markets. There is no restriction on competition as it does not provide for an exchange of commercially- sensitive information between competitors, The Commission has therefore closed the case with a so-called "comfort letter" (administrative letter from DG IV).
This article is based and incorporates information provided by the European Commission (Press releases) and is intended for general information. Specialist advice should be sought before acting on it.
