Competition Law
Legal Basis:
- ART 101 → Prohibition of anti-competitiveness agreements between undertakings
- ART 101 (2) → Legal Effect of breach
- ART 101(3) → Legal exceptions
- ART 102 → Abuse of dominant position
- ART 106 → Rules to prevent MS maintaining measures contrary to this
- ART 107→ Prohib. Unlawful state aid to undertakings
- Council Reg 1/2003 → Ensure EU competition system is comprehensive & effective
Regulation 1/2003:
- On implementation of rules of competition
- Power on Commission to enforce ART 101/102
- Commission & National Authorities → Power to establish a infringement of ART 102
- Aim: Provide greater enforcement at national levels
ART 1 → Application of ART 101 & 102 TFEU
- Abuse of dominant position and agreem which do not satisfy ART 101 are prohibited
ART 2 → Burden of proof
- Proving infringement rests on party alleging it
ART 4 → Powers of the Commission
- To apply ART 101 & 102 Commission has power
ART 5 → Powers of national authorities of MS
- Require infringement to be brought to an end, imposing fines…
ART 7 → Finding and termination of infringement
- Commission finds there's an infringement → requires undertakings to bring it to an end
- May impose behavioural and structural remedies which are proportionate
ART 23 → Fines
Competition Law: promote + maintain competition by regulating anti-competitive conduct
- Protects the process of competition
Without competition rules → Firms are free to act to distort process of competition and have no
restraint over their behaviour
Commision: Goal of ART 101/102 is to protect competition on the market as a means of
enhancing consumer welfare and ensuring efficient allocation of resources
, 1. Subject
a. Personae - Undertakings
- Undertaking: Any legal entity engaging in economic activity
- Case: Hofner (Par 21)
- Econ.activity: The offering of goods & services on a market
- Excluding: 1. Entity exercising public power
2. Purely Social Objectives
- Case: Comm v Italy (par 7): By exercising power or carrying economic
activity
b. Materiae - Affect Trade
1. B/w MS
- Interstate Element
2. De Minimis Doctrine
- Agreements of minor importance
- Cartels→ no effect on trade
- Not over 10% comp / 15% non comp of market share
Except: agreements w anti-competitive objectives
c. To Who?
- Case: Continental Cans (Par 16)
- Every company that affects internal market
For conduct to be capable of affecting trade: Must be possible to foresee an
1) Sufficient degree of probability
2) Direct/ Indirect
3) Actual/Potential
Influence on trade between MS
2. Identification of Anti Competitive Behavior
1. Presumption of Illegality
- Likely to cause anti competitive effect
2. Presumption of Legality
- Unlikely
3. Case by Case Analysis
- Ambiguous
Types of Anti Competition
1. Cartels (ART 101)
2. Dominant Position (ART 102)
3. State Aid (ART 107)
Legal Basis:
- ART 101 → Prohibition of anti-competitiveness agreements between undertakings
- ART 101 (2) → Legal Effect of breach
- ART 101(3) → Legal exceptions
- ART 102 → Abuse of dominant position
- ART 106 → Rules to prevent MS maintaining measures contrary to this
- ART 107→ Prohib. Unlawful state aid to undertakings
- Council Reg 1/2003 → Ensure EU competition system is comprehensive & effective
Regulation 1/2003:
- On implementation of rules of competition
- Power on Commission to enforce ART 101/102
- Commission & National Authorities → Power to establish a infringement of ART 102
- Aim: Provide greater enforcement at national levels
ART 1 → Application of ART 101 & 102 TFEU
- Abuse of dominant position and agreem which do not satisfy ART 101 are prohibited
ART 2 → Burden of proof
- Proving infringement rests on party alleging it
ART 4 → Powers of the Commission
- To apply ART 101 & 102 Commission has power
ART 5 → Powers of national authorities of MS
- Require infringement to be brought to an end, imposing fines…
ART 7 → Finding and termination of infringement
- Commission finds there's an infringement → requires undertakings to bring it to an end
- May impose behavioural and structural remedies which are proportionate
ART 23 → Fines
Competition Law: promote + maintain competition by regulating anti-competitive conduct
- Protects the process of competition
Without competition rules → Firms are free to act to distort process of competition and have no
restraint over their behaviour
Commision: Goal of ART 101/102 is to protect competition on the market as a means of
enhancing consumer welfare and ensuring efficient allocation of resources
, 1. Subject
a. Personae - Undertakings
- Undertaking: Any legal entity engaging in economic activity
- Case: Hofner (Par 21)
- Econ.activity: The offering of goods & services on a market
- Excluding: 1. Entity exercising public power
2. Purely Social Objectives
- Case: Comm v Italy (par 7): By exercising power or carrying economic
activity
b. Materiae - Affect Trade
1. B/w MS
- Interstate Element
2. De Minimis Doctrine
- Agreements of minor importance
- Cartels→ no effect on trade
- Not over 10% comp / 15% non comp of market share
Except: agreements w anti-competitive objectives
c. To Who?
- Case: Continental Cans (Par 16)
- Every company that affects internal market
For conduct to be capable of affecting trade: Must be possible to foresee an
1) Sufficient degree of probability
2) Direct/ Indirect
3) Actual/Potential
Influence on trade between MS
2. Identification of Anti Competitive Behavior
1. Presumption of Illegality
- Likely to cause anti competitive effect
2. Presumption of Legality
- Unlikely
3. Case by Case Analysis
- Ambiguous
Types of Anti Competition
1. Cartels (ART 101)
2. Dominant Position (ART 102)
3. State Aid (ART 107)
