Competition Law
What is EU competition law?
Competition Law sets the ground rules for relationships between firms in a market, limiting
anticompetitive agreements and abuse of market power. There are overlaps between competition
and free movement law, and they share similar objectives – both are concerned with opening up
cross-border trade and, arguably, encouraging consumer choice. Broadly speaking, competition law
operates in the private sphere and regulates business relations between firms, whereas free
movement law examines the effect of measures imposed by the State in the public sphere.
The key provisions in the Treaty are Art 101 TFEU, prohibiting anticompetiive agreements between
firms (cartels), and Art 102 TFEU on abuse of a dominant position (monopoly or oligopoly). These are
sometimes known as the 'antitrust' provisions.
(NB: Although the content has remained the same, the Treaty articles have been renumbered over
time, so be aware when you are consulting older cases that Art 101 TFEU = Art 81 EC = Art 85 EEC,
and Art 102 TFEU = Art 82 EC = Art 85 EEC)
EU and Member State competition law:
EU competition law applies only where the agreement between firms or the abuse of a dominant
position is capable of affecting trade between Member States. This echoes the requirement of a
‘cross border element’ for the four freedoms to apply. Just as situations wholly internal to one
Member State are, as a rule, not caught by the provisions on the four freedoms, an effect on trade
purely within one Member State will fall outside of the remit of Articles 101 and 102, and only
national competition law will apply.
Where there is an effect on trade between Member States, national authorities are under a duty to
apply Articles 101 and 102 in parallel with their national competition law. In case of any conflict, EU
competition law takes precedence over national law - flowing from the doctrine of supremacy.
The UK Competition Act 1998, more or less copies and pastes Art 101 and 102, except that it
concerns effect on trade within the UK rather than between Member States.
Brexit:
When the UK was a Member State, and before the end of the transition period, the competition
authorities - the Competition and Markets Authority (CMA) and sectoral regulators - applied EU
competition law where there was a cross-border effect on trade. From 1 January 2021, UK
authorities can no longer enforce Articles 101 and 102 TFEU, and UK authorities and courts are no
longer required to interpret UK competition law consistently with EU law (previously s.60 of the UK
Competition Act 1998). However, Articles 101 and 102 TFEU continue to apply to conduct by UK
firms which produces effects within the EU, and that conduct can be investigated by the European
Commission or the relevant Member State competition authorities. Following Brexit there has been
no change to the UK's substantive competition rules set out in Chapter 1 and Chapter 2 of the UK
Competition Act 1998, which mirror Articles 101 and 102 TFEU. So for new cases where the same
conduct affects competition in both UK and EU markets, firms could be subject to parallel
What is EU competition law?
Competition Law sets the ground rules for relationships between firms in a market, limiting
anticompetitive agreements and abuse of market power. There are overlaps between competition
and free movement law, and they share similar objectives – both are concerned with opening up
cross-border trade and, arguably, encouraging consumer choice. Broadly speaking, competition law
operates in the private sphere and regulates business relations between firms, whereas free
movement law examines the effect of measures imposed by the State in the public sphere.
The key provisions in the Treaty are Art 101 TFEU, prohibiting anticompetiive agreements between
firms (cartels), and Art 102 TFEU on abuse of a dominant position (monopoly or oligopoly). These are
sometimes known as the 'antitrust' provisions.
(NB: Although the content has remained the same, the Treaty articles have been renumbered over
time, so be aware when you are consulting older cases that Art 101 TFEU = Art 81 EC = Art 85 EEC,
and Art 102 TFEU = Art 82 EC = Art 85 EEC)
EU and Member State competition law:
EU competition law applies only where the agreement between firms or the abuse of a dominant
position is capable of affecting trade between Member States. This echoes the requirement of a
‘cross border element’ for the four freedoms to apply. Just as situations wholly internal to one
Member State are, as a rule, not caught by the provisions on the four freedoms, an effect on trade
purely within one Member State will fall outside of the remit of Articles 101 and 102, and only
national competition law will apply.
Where there is an effect on trade between Member States, national authorities are under a duty to
apply Articles 101 and 102 in parallel with their national competition law. In case of any conflict, EU
competition law takes precedence over national law - flowing from the doctrine of supremacy.
The UK Competition Act 1998, more or less copies and pastes Art 101 and 102, except that it
concerns effect on trade within the UK rather than between Member States.
Brexit:
When the UK was a Member State, and before the end of the transition period, the competition
authorities - the Competition and Markets Authority (CMA) and sectoral regulators - applied EU
competition law where there was a cross-border effect on trade. From 1 January 2021, UK
authorities can no longer enforce Articles 101 and 102 TFEU, and UK authorities and courts are no
longer required to interpret UK competition law consistently with EU law (previously s.60 of the UK
Competition Act 1998). However, Articles 101 and 102 TFEU continue to apply to conduct by UK
firms which produces effects within the EU, and that conduct can be investigated by the European
Commission or the relevant Member State competition authorities. Following Brexit there has been
no change to the UK's substantive competition rules set out in Chapter 1 and Chapter 2 of the UK
Competition Act 1998, which mirror Articles 101 and 102 TFEU. So for new cases where the same
conduct affects competition in both UK and EU markets, firms could be subject to parallel
