European Law Summary
Week VII
Learning objectives:
Understand the objectives of competition law.
Comprehend the integration of art. 101 TFEU within the framework of the EU Treaties and be aware of
the various steps required for the application of art. 101 TFEU.
Be able to apply the relevant legislation and case law on art. 101 TFEU to legal questions dealing with
anticompetitive collusion and be able to solve cases.
Introduction to Article 101 TFEU (The Cartel Prohibition)
Art. 101 TFEU acts as a safeguard against anti-competitive behaviour, meaning conduct by undertakings that
harms fair competition within the internal market.
The provision prohibits all agreements between undertakings, decision by associations of undertakings, and
concerted practices that may affect trade between MS and have the object or effect of preventing, restricting,
or distorting competition.
Examples include agreements that:
Fix prices or trading conditions
Limit or control production, markets or investment
Share markets or sources of supply
Apply unfair conditions that disadvantage competitors
Impose unrelated obligations as a condition for contracts
Purpose and objectives of EU Competition Law
Competition law (art. 101 and 102 TFEU) serves several key purposes:
1. Enhancing efficiency: It seeks to maximize consumer welfare and ensure optimal resource allocation
by maintaining well-functioning competition. Anti-competitive agreements distort this balance, so art.
101 intervenes to preserve efficiency.
2. Protecting consumer welfare: Firms with significant market power could harm consumers through
restrictive agreements or monopolistic behaviour. Competition law prevents such practices to keep
markets fair and prices competitive.
3. Creating a single European market: A core EU goal is the free movement of goods, services, capital,
and people. Anti-competitive agreements (e.g., limiting trade to specific MS) threaten this freedom.
Thus, competition law is essential to the functioning of the EU’s internal market.
Roadmap – Competition Law
Art. 101 TFEU
STEP 1
Are there undertakings involved? (definition Höfner & Elsner par. 21).
“Entities engaged in an economic activity” –> “Any activity consisting in offering goods and services on a given
market” (definition Ambulanz Glöckner par. 19).
STEP 2
Is there collusion (not independent making decisions) between those undertakings?
Agreement: does not require a written contract –> concurrence of wills.
Decision of an association of undertakings: decisions made by these can lead to coordinated
behaviour among members, potentially causing anti-competitive effect.
Concerted practice: form of informal coordination between undertakings where, without a formal
agreement, companies knowingly replace genuine competition with practical cooperation – such as
sharing information or aligning behaviour – so that each adjusts its market conduct based on the
expectation that competitors will do the same (T-Mobile par. 26).
Week VII
Learning objectives:
Understand the objectives of competition law.
Comprehend the integration of art. 101 TFEU within the framework of the EU Treaties and be aware of
the various steps required for the application of art. 101 TFEU.
Be able to apply the relevant legislation and case law on art. 101 TFEU to legal questions dealing with
anticompetitive collusion and be able to solve cases.
Introduction to Article 101 TFEU (The Cartel Prohibition)
Art. 101 TFEU acts as a safeguard against anti-competitive behaviour, meaning conduct by undertakings that
harms fair competition within the internal market.
The provision prohibits all agreements between undertakings, decision by associations of undertakings, and
concerted practices that may affect trade between MS and have the object or effect of preventing, restricting,
or distorting competition.
Examples include agreements that:
Fix prices or trading conditions
Limit or control production, markets or investment
Share markets or sources of supply
Apply unfair conditions that disadvantage competitors
Impose unrelated obligations as a condition for contracts
Purpose and objectives of EU Competition Law
Competition law (art. 101 and 102 TFEU) serves several key purposes:
1. Enhancing efficiency: It seeks to maximize consumer welfare and ensure optimal resource allocation
by maintaining well-functioning competition. Anti-competitive agreements distort this balance, so art.
101 intervenes to preserve efficiency.
2. Protecting consumer welfare: Firms with significant market power could harm consumers through
restrictive agreements or monopolistic behaviour. Competition law prevents such practices to keep
markets fair and prices competitive.
3. Creating a single European market: A core EU goal is the free movement of goods, services, capital,
and people. Anti-competitive agreements (e.g., limiting trade to specific MS) threaten this freedom.
Thus, competition law is essential to the functioning of the EU’s internal market.
Roadmap – Competition Law
Art. 101 TFEU
STEP 1
Are there undertakings involved? (definition Höfner & Elsner par. 21).
“Entities engaged in an economic activity” –> “Any activity consisting in offering goods and services on a given
market” (definition Ambulanz Glöckner par. 19).
STEP 2
Is there collusion (not independent making decisions) between those undertakings?
Agreement: does not require a written contract –> concurrence of wills.
Decision of an association of undertakings: decisions made by these can lead to coordinated
behaviour among members, potentially causing anti-competitive effect.
Concerted practice: form of informal coordination between undertakings where, without a formal
agreement, companies knowingly replace genuine competition with practical cooperation – such as
sharing information or aligning behaviour – so that each adjusts its market conduct based on the
expectation that competitors will do the same (T-Mobile par. 26).
