Eu Competition Policy

2406 WordsMay 3, 200810 Pages
EU Competition Policy European competition law and policy have changed significantly in recent years. With an enlarged EU of 27 member states, new rules, policies and administrative procedures have become increasingly important to ensure that this fundamental legal regime continues to promote competition and protect consumer welfare. In an attempt to define Competition policy, Massimo Motta described it as follows: “the set of policies and laws which ensure that competition in the market place is not restricted in such a way as to reduce economic welfare.” European Competition policy is concerned with setting common standards of conduct among member states and its main goal is to ensure free and fair competition within the EU. It…show more content…
The Commission also imposed small fines of €1,000 on both APTI and UNITAB (respectively the Italian trade associations of processors and tobacco growers) for engaging in collective price negotiations. Article 82 of the Treaty prohibits the abuse of a dominant position and governs monopoly powers. Like Article 81, it attempts to achieve perfect competition. It outlaws “any abuse by one or more undertakings of a dominant position within the common market or in a substantial part of it …insofar as it may affect trade between member states”. This applies to any firm, not only of EU countries, whose dominant share of the market is within the EU. Dominant position refers to monopoly power that enables the firm or firms to influence, by independent action as a buyer or seller, the outcome of the market. Certain forms of cooperation agreements between enterprises are deemed not to restrict competition and therefore are exempted. Such abuse may, in particular, consist in: 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; and making the conclusion of contracts subject to acceptance by the other parties of supplementary
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