Control of Anticompetitive Agreements
Article 101 TFEU:
Control of agreements inflenced by general goals of EU i.e. market
integration imperative, than rules on control of dominant
undertakings.
Possible for undertakings to reach monopoly position by agreeing
with their competitors that they sholld not compete.
Parties to the agreement, forming a cartel, will have a monopoly
position in a market.
Development of Article 101 TFEU, observable tensions between desire to
promote market integration on the one hand + to improve economic
efficiency on the other.
Market integration seems to have been preferred.
Article 101 TFEU is designed to prohibit agreements that restrict
competition.
Self-evident in blatant breaches of CL involving horizontal price-fxing
and market sharing beyond those many types of agreement which are
less obviols are problematic.
Distinction between horizontal agreements, which are between
blsinesses operating on diferent levels of the market and vertical
agreements which are between blsinesses operating on diferent levels of
the market.
Horizontal agreements are more likely to threaten competition as
they involved two parties who wolld normally compete with each other.
Whereas, vertical agreements are less likely to raise direct
competition concerns, as the parties do not directly compete with each
other.
First paragraph of Article 101 TFEU lays down prohibition and 3rd set
out an exception to the prohibition if certain criteria are met.
Article 101(2) sets olt the consequences if the prohibition is
breached.
Two Aspects:
o General Prohibition.
o A list of “hard core” violations.
General Prohibition – Article 101(1):
The following shall be prohibited as incompatible with the internal market:
all agreements between undertakings, decisions by associations of
undertakings and concerted practices which may afect trade
between Member States and which have as their object or efect the
prevention, restriction or distortion of competition within the
internal market, and in particllar …
Inclldes indicative list of type of agreement which may be covered.
COJ and Commission have given the Article a wide interpretation,
encapsulating many types of collusive or cooperative behaviour.
The Hard-Core Restrictions:
Article 101 TFEU:
Control of agreements inflenced by general goals of EU i.e. market
integration imperative, than rules on control of dominant
undertakings.
Possible for undertakings to reach monopoly position by agreeing
with their competitors that they sholld not compete.
Parties to the agreement, forming a cartel, will have a monopoly
position in a market.
Development of Article 101 TFEU, observable tensions between desire to
promote market integration on the one hand + to improve economic
efficiency on the other.
Market integration seems to have been preferred.
Article 101 TFEU is designed to prohibit agreements that restrict
competition.
Self-evident in blatant breaches of CL involving horizontal price-fxing
and market sharing beyond those many types of agreement which are
less obviols are problematic.
Distinction between horizontal agreements, which are between
blsinesses operating on diferent levels of the market and vertical
agreements which are between blsinesses operating on diferent levels of
the market.
Horizontal agreements are more likely to threaten competition as
they involved two parties who wolld normally compete with each other.
Whereas, vertical agreements are less likely to raise direct
competition concerns, as the parties do not directly compete with each
other.
First paragraph of Article 101 TFEU lays down prohibition and 3rd set
out an exception to the prohibition if certain criteria are met.
Article 101(2) sets olt the consequences if the prohibition is
breached.
Two Aspects:
o General Prohibition.
o A list of “hard core” violations.
General Prohibition – Article 101(1):
The following shall be prohibited as incompatible with the internal market:
all agreements between undertakings, decisions by associations of
undertakings and concerted practices which may afect trade
between Member States and which have as their object or efect the
prevention, restriction or distortion of competition within the
internal market, and in particllar …
Inclldes indicative list of type of agreement which may be covered.
COJ and Commission have given the Article a wide interpretation,
encapsulating many types of collusive or cooperative behaviour.
The Hard-Core Restrictions:
