COMPETITION LAW ENFORCEMENT

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COMPETITION LAW ENFORCEMENT

• Professor José Luís da Cruz Vilaça
• Catholic University, Lisbon
• LL.M Advanced Master of Laws
• 22/23 29/30 January 2009

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GENERAL OUTLINE OF THE COURSE

• I. PUBLIC ENFORCEMENT OF ARTICLES 81 AND 82
• From Regulation 17 to Regulation 1/2003
• The Modernisation Regulation an overview
• The Commissions enforcement powers dawn raids
• The role of the NCAs articulation with the
  Commission - the ECN
• Judicial review
• PRIVATE ENFORCEMENT
• Damages actions
• Euro-defence
• Arbitration
• Proposals for reform

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EU Legislation

• Council Regulation (EC) No 1/2003 of 16 December
  2002, on the implementation of the rules on
  competition laid down in Articles 81 and 82 of
  the Treaty (Modernisation Regulation) OJ L 1,
  4.1.2003, p. 1
• Commission Regulation (EC) No 773/2004 of 7 April
  2004, relating to the conduct of proceedings by
  the Commission pursuant to Articles 81 and 82 of
  the EC Treaty (Implementing Regulation) OJ L
  123, 27.4.2004, p. 18
• Commission Regulation (EC) No 622/2008 of 30 June
  2008, amending Reg. 773/2004, as regards the
  conduct of settlement procedures in cartel cases
  OJ L 171, 1.7.2008, p. 3
• Council Regulation No 17 of 6 February 1962,
  First Regulation implementing Articles 85 and 86
  of the Treaty OJ 13, 21.2.1962, p. 204.
  Regulation
• Commission Regulation No 99/63/EEC of 25 July
  1963, on the hearings provided for in Article
  19(1) and (2) of Council Regulation No 17.

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Portuguese legislation

• Law No 18/2003 of 11.6, as amended by Decree-law
  219/2006 of 2.11.2, Decree-law 18/2008 of 29.1
  and Law 52/2008 of 28.8 (Portuguese Competition
  Act)
• Decree-law 10/2003 of 11.6 (Statutes of the PCA)
• Decree-law 30/2004 of 6.2, on the PCAs revenues
• Law 39/2006 of 25.8, on leniency
• Regulation 9/2005 of 3.2 of the PCA, on the
  procedure of notification for assessment of
  agreements under Article 5(2) of the Competition
  Act

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Commission Notices and Communications

• Public enforcement
• Notice on cooperation within the network of
  competition authorities OJ C 101/03, 27.4.2004,
  p. 43
• On the cooperation bewtween the Commission and
  the courts of the EU Member States in the
  Application of Articles 81 and 82 OJ C 101/04,
  27.4.2004, p. 54
• On the handling of complaints by the Commission
  under Articles 81 and 82 C 101/05, 27.4.2004,
  p. 65
• On informal guidance relating to novel questions
  concerning Articles 81 and 82 that arise in
  individual cases (Guidance letters) OJ C
  101/06, 27.4.2004, p. 78
• On the rules for access to the Commission file in
  cases pursuant to Articles 81 and 82, Articles
  53, 54 and 57 of the EEA Agreement and Council
  Regulation (EC) No 139/2004 OJ C 325/07,
  22.12.2005, p. 7
• Guidelines on the effect on trade OJ C 101/07,
  27.4.2004, p. 81
• On the application of Article 81(3) OJ C
  101/08, 27.4.2004, p. 97
• On the method of setting fines OJ C 210/02,
  1.9.2006, p. 2
• Notice on Immunity from fines and reduction of
  fines in cartel cases OJ C 298/11, 8.12.2006,
  p. 17
• Guidance on the application of Article 82 to
  abusive exclusionary conduct by dominant
  undertakings COM(2008), 3.12.2008 (under
  linguistic revision)
• Notice on the conduct of settlement procedures
  OJ C 167, 2.7.2008, p. 1

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Public enforcementA. From Regulation 17 to
Regulation 1/2003

• Regulation 17/1962 A system of control
  centralised in the Commission
• A general principle of prohibition of
  anti-competitive agreements without prejudice to
  an exemption based upon a mandatory notification
  to the Commission
• The need for a consistent practice and a common
  competition culture in Europe
• Drawbacks and shortcomings of the old system

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Public enforcementB. Overview of the
Modernisation Regulation

• Basic principles of the Regulation direct effect
  of Article 81(3) a system of legal exception
  self assessment and the issue of legal security
  decentralised application Article 1
• Burden of proof Article 2
• Relation with national law
• Powers of Commission, NCAs, national courts
  Articles 4. 5 and 6
• The legal basis for the Regulation
• Supporting measures Regulation No 773/2004
  Commission Notices

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Public enforcementC. The Modernisation
Regulation Commission Decisions

• Finding and termination of infringements
  Article 7
• Obligation to act? - Automec
• Remedies behavioural (Article 82 - Commercial
  Solvents, Microsoft Article 81 - Automec,
  Atlantic Container Line) and structural
• Past infringements
• Complainants
• Interim measures (Article 8) Camera Care, Ford
  Werke, Ecosystem, Sealink/Holyhead, IMS Health
• Commitments (Article 9) substantive rules
  procedure
• Finding of inapplicability Article 10
• Informal guidance relating to novel questions
• Leniency and settlements for cartel cases

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Commission Notices and Communications

• Private enforcement
• Notice on the cooperation bewtween the Commission
  and the courts of the EU Member States in the
  Application of Articles 81 and 82 OJ C 101/04,
  27.4.2004, p. 54
• White Paper on Damages actions for breach of the
  EC antitrust rules COM 2008 165 final, 2.4.2008

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EU CASE-LAW

• Relationship between EC law in particular
  Articles 81 82 and national law
• Van Gend en Loos, 26/62, 5.3.1963 (Direct effect)
• Costa v. ENEL, 6/64, 15.7.1964 (Primacy)
• Simmenthal, 106/77, 9.3.1978 (Primacy)
• Walt Wilhem, 14/68, 13.2.1969 (EU national
  competition laws)
• Masterfoods , C-344/98, 14.12.2000 (Legal effect
  of Commissions decisions)
• Cooperation between the Commission and national
  courts
• Delimitis, C-234/89, 28.2.1991
• Commissions Enforcement Powers and Duties
• Automec, T-24/90, 18.9.1992 (Priorities in
  examining complaints Community interest)
• Commercial Solvents, 6 7/73, 6.3.1974
  (Behavioural remedies)
• Microsoft, T-201/04, 17.9.2007 (Behavioural
  structural remedies)
• Commitments Coca-Cola, 22.6.2005
  (COMP/39.116/B-2) Repsol, 12.4.2006
  (COMP/B-1/38348) Distrigaz, (COMP/B-1/37966)

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EU CASE-LAW

• Commissions Powers of Inspection
• National Panasonic, 136/79, 26.6.1980 (No need
  for prior voluntary inspection)
• SGL Carbon, C-301/04 P, 29.6.2006 (Production of
  documents in a Commission investigation)
• Rights of defence
• Orkem, 374/87, Solvay, 27/88, 18.10.1989
  (Privilege against self-incrimination)
• AMS, 155/79, 18.5.1982 (Professional legal
  privilege)
• Hilti, T-30/89, 12.12.1991 (Professional legal
  privilege)
• Akzo Nobel, T-125/03 T-253/03 (Professional
  legal privilege)

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EU CASE-LAW

• Private Enforcement
• Courage v Crehan, C-453/99, 20.9.2001
• Manfredi, C-295/04 to C-298/04, 13.7.2006

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TEXTBOOKS ARTICLES

• Richard Whish, Competition Law, 6th ed., Oxford
  University Press, 2009, Ch. 7 8
• C.S. Kerse N. Khan, EC Antitrust Procedure, 5th
  ed. Sweet Maxwell, 2005
• J. L. da Cruz Vilaça M. Gorjão-Henriques,
  Código da Concorrência, Almedina, 2004
• J. L. da Cruz Vilaça, Direito Comunitário e
  Direito Interno Decisão da Comissão baseada no
  artigo 21.º do Regulamento Concentrações - o
  caso Champallimaud, in Cadernos de Justiça
  Administrativa, 29 Set.º/Out.º 2001