2012 Volume 2012 Issue 32 Pages 18-28
EU competition law consists of four main poles, (i) Article 101 of TFEU (prohibition of anticompetitive agreements), (ii) Article 102 of TFEU (prohibition of abuse of dominant market positions), (iii) Council Regulation on Mergers (prohibition of mergers impeding significantly competition) and (iv) Article 107 of TFEU (prohibition of anticompetitive Sate aids).
EU competition law cannot actively create market integration itself in the internal market, but can promote market integration in the internal market by prohibiting anticompetitive agreements, abuse of market dominant positions, mergers significantly impeding competition and anticompetitive State aid. EU competition law has actually brought substantial contributions to promote market integration in the internal market.
Article 101 of TFEU prohibits horizontal agreements among competitors to fix prices, limit production, share markets or customers and vertical agreements between a supplier and distributors to fix resale prices and to restrict distributors’ territory or customers or parallel importation. Article 101 of TFEU protects free and open competition in the internal market from anticompetitive agreements.
Article 102 of TFEU prohibits abuse of dominant market positions. Abuse of dominant market positions include exclusionary abuse (ex. refusing to supply essential facilities) and exploitative abuse (ex. charging unreasonably high prices). Article 102 of TFEU protects fair and open competition in the internal market from abuse of dominant market positions.
Article 2(3) of Council Regulation on Mergers prohibits a merger which would significantly impede effective competition in the common market or in a substantial part of it, in particular as a result of the creation or strengthening of a dominant position. Article 2(3) of Council Regulation on Mergers protects free and open competition in the internal market from the creation or strengthening of a dominant position by mergers.
Article 107 of TFEU prohibits State aids which distort competition by favoring certain undertakings or the production of certain goods. Article 107 of TFEU protects fair competition in the internal market from discriminatory state aids.
Main task of competition policy is to preserve a fair level-playing field in the internal market. Joaquin Almunia, Vice President of European Commission for Competition Policy says, “Competition has been of primary importance for Europe’s response since the financial crisis erupted over three years ago. As the crisis-in its different forms-continues to beleaguer us, competition policy remains of crucial importance,”
