CH1 : COMPETITION LAW

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CH1 COMPETITION LAW

• Olivier BEDDELEEM

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Intro- PRESENTATION OF COMPETITION LAW

• A- Why is it necessary to regulate competition ?
• 1) Free Market
• 2) Limits of Free Market
• 3) Aim of Competition Law

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• B- CONTENT OF COMPETITION LAW
• 1) Origin American Law
• Sherman Act 1890
• Standard Oil Company 1911
• Clayton Act 1914
• 2) EC Competition law
• a) General Provisions
• b) Specific Provisions

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I- CARTELS

• A- Conditions Article 81(1)
• 1) On a European market
• 2) Agreements, decisions of associations of
  undertakings and concerted practices
• 3) Which have as their object or effect the
  prevention, restriction or distortion of
  competition within the common market

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• Art 81(1). The following shall be prohibited as
  incompatible with the common market all
  agreements between undertakings, decisions by
  associations of undertakings and concerted
  practices which may affect trade between Member
  States and which have as their object or effect
  the prevention, restriction or distortion of
  competition within the common market.

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• 1) Definition of the market
• a) Geographical market
• b) Product of service
• Interchangeable
• Substituable

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• 2) Which agreements are concerned ?

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• 3) Effect on the market
• a) Restriction of the market
• b) Object or effect

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• B- Enforcement of Article 81
• 1) By the Commission
• 2) Judicial control
• 3) National control

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• Exemple The Volkswagen case (1998)
• 1) Facts
• 2) Procedure
• 3) Question asked to the judge
• 4) Arguments
• Commission
• Volkswagen
• 5) Solution

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• C- Possibility to grant exemptions
• 1) The possibility to grant exemption
• 2) The agreement must meet 4 conditions
• 3) Notification
• 4) Block exemptions
• 5) Control by the ECJ

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• Art 81(3) The provisions of paragraph 1 may,
  however, be declared inapplicable in the case (of
  an agreement) which contributes to improving the
  production or distribution of goods or to
  promoting technical or economic progress, while
  allowing consumers a fair share of the resulting
  benefit, and which does not
• (a) impose on the undertakings concerned
  restrictions which are not indispensable to the
  attainment of these objectives
• (b) afford such undertakings the possibility of
  eliminating competition in respect of a
  substantial part of the products in question.

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• Analysis of the Google/Yahoo project through
  European law

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II- Abuse of a dominant position

• Article 82 EU
• A- Scope
• B- Dominant position
• C- Market strength
• D- Abuse of the dominant position

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• Art 82 EU Any abuse by one or more undertakings
  of a dominant position within the common market
  or in a substantial part of it shall be
  prohibited as incompatible with the common market
  in so far as it may affect trade between Member
  States.

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• Exemple The Microsoft Case (2004)

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III- MERGERS

• A- Difference between merger and cartel
• B- Procedure
• 1) Notification (size of the merger)
• 2) Inquiry
• 3) Decision
• Yes
• No
• Yes but

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• Exemple 1 Aeroport de Paris
• Exemple 2 Total-Fina-Elf

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• Example 3 Coca-Cola/Orangina
• Example 4 General Electric v. Honeywell

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V- STATE COMPANIES

• A- Principle
• B- Exceptions

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V- STATE AIDS

• A- Principle
• B- Exceptions