European Competition Law

Competition : stimulant of economic activity
Objectives :
• Market integration
• Fair competition
• Efficiency

Art 81
• Concerted practices
Ex : Otis / Kone /schindler / thyssen krupp ( nearly a billion
Tenders, activities, products
• What kind : horizontal / vertical ? what market ?
• what undertakings ? what market ?
• deminimis presumption : 10 % MS for competitors / 15 % for non-competitors

EXEMPTIONS Art 81(3)
• Individual exemptions : 4 conditions
o Improvement
o Fair shareo No restrictions
o No elimination of competition
• block exemptions( makes work easier for everybody
o specialization agreements
o R&Dagreements : combined MS < 25 % (conditions)

• enforcement, art 81(4) :
o many powers
o fines (max : 10 % of annual turnover) ≠ damages (deterrence effect : no limits ) ex of largest : half a billion for one a billion for a cartel
o leniency program

• relevant market : product substitution (ex : UBC & bananas)
o demand-side subsitutiono supply-side
o geographical extent
• extent of MS
• kind of abuse
o unfair prices
o tied sales (ex : tetra pak)
orefusal to supply
Case : Virgin/BA ( discount schemes / efficiency not loyalty
change of control ; national legal framework (France : notification to ministry)

( assess positive and negativeaspects of the merger

Thresholds :
• Turnover (before tax):
o EU : world 500 M € / UE 250 M
o Fr : 150 / 50
• One-stop shop criterion

Fine : 1% of theaggregate turnover

Collective dominant position : 3 conditions
o Possibility to adopt the same policy
o Detterance of departing the oligopoly
o Ability to act...