Competition Law

Introduction

Competition law regulates the actions of companies - called undertakings
By ensuring the undertakings do not work togther to fix prices or ensure their success by not competing with similar products on the market
Allows the 4 freedoms
Means of preventing movement can be through State measures
Free tarde allows market forces to try and dictate success of companies and their products
However companies may undertake restrictive practices to enhance their advanatge

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States that an agreement that has the effect of restricting competeion is illegal - particuarly if it restricts trade between MS, directly/indirectly fixes prices or shares markets or sources of supply etc.
If so there is a fine of 10% of annual turnover and liablility for damages to the parties.

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Hofner 1991 case shows that an undertaking encompasses every entity in an economic activity
Unions are not classifed as undertakings
Agreements may comprise of formal agreements or a gentlemans agreement as seen in ACF Com case 1970. There is no need to be active on the market - AG 2008 case shows this

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Strict interpretation would make many contracts illegal
CJEU analyses agreement to determine if it is anti competitive in practice
Nungesser case 1982 - showed absolute territorial restriction was prohib
Impact on the market ought to be appreciable
Exemptions in Art 101 (3) - lists criteria which must be satisfied for he agreement to be considered exempt - GlaxoSmith case 2006 - court accepted that agreement was necessary
Wouters case 2002 - sound admin of justice
Issues that ehance comp are exempt i.e. suupermarkets.

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Should be demonstration of an agreement or evidence of collusion - concerted practices (CP) - ICI v Com 1972 - defined CP - showed dont need high level of evidence
Since market is oligoplistic in nature cartels can only exist in certain circumstances

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Any abuse which is of a dominant position shall be prohib as it is of no use in the internal market and may affect tarde between MS
Dominance may be 3 areas; Product, Geographical, Temporal nature
United Brands case 1978 - Bananas were distingushed as a product and thus not sustituted for any other - thus a seperate isolated market
Single firm dominance was also definde in the United Brands case 1978
Collective Dominace is seen in Italian Flas Glass case 1992 - case shows that the Commission wanted to unite the 3 producers into a single entity on the market

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