Exemption for certain agreements between liner shipping companies Article 101(1) TFEU prohibits all agreements between businesses and concerted practices which may affect trade between EU countries and which seek to prevent, restrict or distort competition within the EU’s single market. However, Article 101(3) TFEU allows for certain cases where Article 101(1) may be declared inapplicable where agreements may have certain social or consumer benefits, result […]
State aid for businesses in difficulty The European Commission has revised its rules as to how it assesses European Union (EU) countries’ State aid (public subsidies) to support firms in difficulty. This is to ensure that public money is targeted where it is most needed and that company owners pay their fair share of restructuring costs. State aid to firms in difficulty gives them an […]
Application of rules for services of general economic interest (SGEI) Communication on the application of the EU State aid rules to compensation granted for the provision of services of general economic interest Decision 2012/21/EU — application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with […]
State aid: EU guidelines for regional aid for 2014 to 2020 EU guidelines on how EU Member States can grant investment aid to companies to support the development of disadvantaged regions in Europe between 2014 and 2020 entered into force in July 2014. Guidelines on regional State aid for 2014-2020 (Official Journal C 209 of 23.7.2013). European Commission has produced guidelines as to how EU […]
Regulation (EU) No 1407/2013 on de minimis aid for state aid It disciplines small state aid amounts (so-called De minimis aid) that are exempted from state aid control as they are deemed to have no impact on competition and trade in the EU’s internal market. De minimis aid indeed refers to small amounts of state aid to undertakings (essentially companies) that EU countries do not […]
Compatible Aid Regulation (EU) No 651/2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty Known as the general block exemption regulation* (GBER), it seeks to enable EU governments to give higher amounts of public money to a wider range of companies without having to request prior permission from the European Commission. As a […]
Notion of State aid Commission Notice on the notion of State aid as referred to in Article 107(1) of the Treaty on the Functioning of the European Union The notion of State aid is an objective and legal concept defined by Article 107(1) of the Treaty on the Functioning of the European Union (TFEU). The notice provides clarification on the key concepts relating to the […]
Guidelines on the assessment of horizontal mergers under the EU regulation on the control of concentrations between undertakings They provide guidance as to the European Commission’s approach when assessing the likely impact of mergers, within the scope of Article 2 of Regulation (EC) No 139/2004 (the Merger Regulation), where the firms concerned are actual or potential competitors in the same relevant market (horizontal mergers). Through […]
Control of concentrations between companies Regulation (EC) No 139/2004 — the control of concentrations between undertakings (the Merger Regulation) It lays down EU rules with regard to concentrations where two or more firms combine by means of a merger or acquisition. It means that one intra-EU merger need not be notified to several competition authorities in the EU; it is based on the principle of […]
Guidelines on the application of Article 101(3) TFEU (formerly Article 81(3) TEC) The Commission sets out the criteria for assessment under Article 101(3) of the Treaty on the Functioning of the European Union (TFEU) (ex-Article 81(3) of the Treaty Establishing the European Community (TEC)) with a view to exempting agreements between undertakings, decisions by associations of undertakings and concerted practices, which are prohibited under Article […]
Guidelines on horizontal cooperation agreements Guidelines on the applicability of Article 101 of the Treaty on the Functioning of the European Union to horizontal cooperation agreements These guidelines are designed to help companies determine on a case-by-case basis whether their cooperation agreements are compatible with the competition rules by providing a framework for assessment under Articles 101 (1) and (3) of the Treaty on the […]
EU rules on concerted practices and agreements between companies Regulation No 19/65/EEC on application of EU treaties to certain types of agreements and concerted practices between companies Article 101 of the Treaty on the Functioning of the European Union (TFEU) – competition rules applying to companies Article 101 (2) states that all agreements that fall within the scope of Article 101(1) are void unless they […]
Compensation The European Union (EU) has adopted rules allowing companies to receive full compensation for actual losses and lost profits that they suffer as a result of a cartel in their sector. Although Articles 101 and 102 of the Treaty on the Functioning of the European Union guarantee the right to full compensation, until now, its practical exercise has been difficult. The European Union (EU) […]
Notice on the conduct of settlement procedures It sets out the procedures and criteria for rewarding companies — through lower penalties — which admit to the European Commission that they have participated in an illegal cartel. It provides guidance for the legal and business communities. The anti-competitive behaviour prevents the single market from operating smoothly and is illegal under Article 101 of the Treaty on […]
National Authorities Directive (EU) 2019/1 empowering EU countries’ competition authorities to be more effective enforcers and to ensure the proper functioning of the EU’s internal market, The legislation: guarantees EU countries’ national competition authorities the necessary independence, resources and enforcement and fining powers that are necessary to tackle effectively agreements and practices by companies that restrict competition within their jurisdiction; applies specifically to when anti-competitive […]
Implementing EU competition rules The notice explains how the Commission applies: Regulation (EC) No 1/2003 (see summary); Regulation (EC) No 773/2004 (see summary). Annex 1 of the notice summarises the essence of the notice in the form of a flowchart. Procedure Investigative phase Cases of alleged anti-competitive behaviour may be: based on complaints from companies, natural and legal persons or EU governments; opened by the […]
Exemption for vertical supply and distribution agreements Regulation (EU) No 330/2010 — application of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices gives a block exemption from Article 101(1) TFEU to vertical agreements* which fulfil certain requirements. These agreements may, for instance, help a manufacturer to enter a new market, or avoid the situation whereby one distributor […]
De minimis notice: Exemption for agreements of minor importance Notice on agreements of minor importance which do not appreciably restrict competition (De Minimis Notice) Article 101(1) Treaty on the Functioning of the European Union prohibits agreements between businesses that are liable to prevent, affect or distort competition within the EU. The Court of Justice of the EU (CJEU) has consistently recognised that this article does […]
EU Competition Law Competition policy has been a central element of the European Union Treaties since the outset. The completion of the customs union, common market and later the single market required a system of competition control to ensure that competition in the single market was not disturbed. The Treaty on the Functioning of the European Union restates the basic prohibition on anti-competitive agreements and […]
Public Procurement Law European Union Law binds member states and public authorities. Such authorities and bodies are significant purchasers of goods and services. The common market for goods and services in the European Union requires transparent, non-discriminatory procurement by public authorities. The EU Legislation lay down EU wide rules and principles in relation to procurement. The procurement rules apply to governmental bodies and bodies governed […]
Types of Process There is a number of types of procurement procedures permitted under the 2014 directives. The most common procedure is the open procedure by which all interested parties may tender a single fully priced offer in response to an advertisement. The restricted procedure requires interested parties to prequalify. They then may be invited to participate and submit a fully priced and particularised tender. […]
Agreements and Practices EU, UK and Irish legislation prohibit agreements, concerted practices and decisions by businesses or businesses association which have as their the object or effect the prevention, restriction or distortion of competition. The prohibition covers formal and informal agreements, arrangements and tacit understandings between businesses not to compete or to limit competition. EU law applies to the restriction or distortion of competition between […]
Vertical Restraints Vertical restraints are agreements made between persons operating at different levels in the market, such as manufacturers and distributors. Vertical agreements come in a variety of forms, including franchising agreements, distribution agreements and single branding agreements. There may be a mixture of different elements in particular types of agreements. Vertical agreements typically contain restraints which may have anticompetitive effects but may nonetheless be […]
Rationale Article 102 of the European Union Treaty prohibits the abuse of a dominant position within the European Union, insofar as it may affect trade between member states. The corresponding domestic legislation focuses on abuse of dominant position within the State. The prohibition applies to actions by “undertakings” which include individuals and corporations which undertake commercial activity. Fair competition is the fundamental part of the […]
Dominance Dominance must be considered with reference to the relevant market, once ascertained and defined. Dominance has been defined as a position of economic strength enjoyed by an undertaking, which enables it to prevent effective competition being maintained on the relevant market, by affording it the power to behave to an appreciable extent, independently of its competitors and customers. The dominant undertaking is typically in […]
Definition of Abuse Article 102 of the EU Treaty sets out indicative examples of abuse of a dominant position. They include; directly or indirectly, imposing unfair purchase or selling prices or other unfair trading conditions; limiting production, markets or technical development, to the prejudice of consumers; applying dissimilar conditions to equivalent transactions with other trading parties thereby placing them at a competitive disadvantage; making the […]