This chapter discusses the application of competition law to mergers, focusing on the EU and the EUMR. In the EU, where a merger (‘concentration’) meets the relevant thresholds, it falls within the exclusive competence of the European Commission to examine the merger. Undertakings contemplating such a merger are required compulsorily to notify the Commission. The test of a merger’s acceptance is that of whether it substantially impedes effective competition in the internal market, in particular, but not exclusively, by creating or strengthening a dominant position. Using the powers set out in the Merger Regulation the Commission may authorize, or block, the merger over a two-stage process. Tight time limits apply. Appeals against Commission decisions are to the General Court.
Chapter
This chapter discusses Article 102 TFEU, which applies to abusive conduct engaged in by undertakings in a dominant position. The dominant position must be held in a ‘substantial part’ of the internal market for EU competition law to apply. Abuses can take many forms, and include conduct designed to preserve or expand the power of the undertaking (‘exclusionary abuses’) and conduct aiming to exploit the power of the undertaking (‘exploitative abuses’). No exemptions are available, but the alleged abusive conduct may be defended on the grounds that it is ‘objectively justifiable’ or if there are efficiency justifications. A breach of Article 102 TFEU may incur penalties, damages, and a requirement of conduct modification.
Chapter
Alison Jones and Christopher Townley
This chapter examines the two core competition rules that govern anti-competitive agreements (Article 101 TFEU) and abuse of a dominant position (Article 102 TFEU). It begins with an overview of EU competition law. It then discusses the enforcement and consequences of infringement; who Articles 101 and 102 TFEU apply to and when they apply. It also identifies anti-competitive agreements and conduct.
Chapter
All books in this flagship series contain carefully selected substantial extracts from key cases, legislation, and academic debate, providing students with a stand-alone resource. This chapter focuses on another principal provision concerned with competition policy: Article 102 TFEU. The essence of Article 102 is the control of market power, whether by a single firm or, subject to certain conditions, a number of firms. Monopoly power can lead to higher prices and lower output than would prevail under more normal competitive conditions, and this is the core rationale for legal regulation in this area. Article 102 does not, however, prohibit market power per se. It proscribes the abuse of market power. Firms are encouraged to compete, with the most efficient players being successful. The UK version contains a further section analysing issues concerning EU competition law and the UK post-Brexit. EU law
Chapter
All books in this flagship series contain carefully selected substantial extracts from key cases, legislation, and academic debate, providing students with a stand-alone resource. This chapter focuses on another principal provision concerned with competition policy: Article 102 TFEU. The essence of Article 102 is the control of market power, whether by a single firm or, subject to certain conditions, a number of firms. Monopoly power can lead to higher prices and lower output than would prevail under more normal competitive conditions, and this is the core rationale for legal regulation in this area. Article 102 does not, however, prohibit market power per se. It proscribes the abuse of market power. Firms are encouraged to compete, with the most efficient players being successful. The UK version contains a further section analysing issues concerning EU competition law and the UK post-Brexit. EU law
Chapter
This chapter discusses the main features of Article 102 of the Treaty on the Functioning of the European Union (TFEU), which is concerned with the abusive conduct of dominant firms. It begins by introducing the European Commission’s Guidance on the Commission’s enforcement priorities in applying Article [102 TFEU] to abusive exclusionary conduct by dominant undertakings. It then discusses the concept of undertaking, the requirement of an effect on trade between Member States, the concept of a dominant position and the requirement that any dominant position must be held in a substantial part of the internal market. The chapter also considers the meaning of abuse of a dominant position, which is a complex and controversial issue. A discussion of the defences to allegations of abuse is followed by a brief look at the consequences of infringing Article 102.
Chapter
This chapter provides an introduction to Competition Policy and law in the European Union (EU). There are three sets of rules: one relating to the activities of legal persons—that is, the business undertakings, which now includes rules on concentrations and mergers; one relating to anti-dumping measures; and, finally, one relating to the activities of the member states, principally state aid. The rules concerned with private undertakings are further subdivided into: Article 101 TFEU for agreements between cartels involving more than one entity; Article 102 TFEU, concerned with dominant positions, dealing predominantly with one entity but also applicable to one or more undertakings; and the rules applicable to concentrations and mergers.
Chapter
This chapter examines the law and policy on competition in the European Union. It discusses the economic theories underpinning competition protection and the way economic theory is applied in legal and policy decisions. The chapter analyses the scope and effect of Articles 101 and 102 TFEU and the relationship between the two provisions. Concerted practice, dominant position and abuse are defined, and the exceptions to the rules in Article 101 are outlined. This is followed by discussions of the application and enforcement of EU competition law and merger control. State aid and services in the general economic interest are also considered. The role of the consumer and consumer protection are considered throughout.
Chapter
This chapter begins with an outline of the aims of competition law. It then provides an overview of Articles 101 and 102 of the TFEU. This is followed by discussions of the application and enforcement of EU competition law, and merger control.
Book
Richard Whish and David Bailey
The book explains the purpose of competition policy, introduces the reader to key concepts and techniques in competition law and provides insights into the numerous different issues that arise when analysing market behaviour. Describing the law in its economics and market context, the chapters particularly consider the competition law implications of business phenomena, including distribution agreements, licences of intellectual property rights, cartels, joint ventures and mergers. The book assimilates a wide variety of resources, including judgments, decisions, guidelines and periodical literature. The text has been updated to include the changes to UK law introduced by the Consumer Rights Act 2015, including the reform of collective actions. It also considers the Directive on Antitrust Damages Actions and other measures designed to facilitate private enforcement of competition law. The book also discusses for the first time the application of competition law to price signalling, algorithmic collusion and other atypical cartel activities; it also incorporates extensive new case law and decisional practice at EU and UK level.
Chapter
The idea of competition lies at the heart of the capitalist system and at the heart of European Union (EU) economic law. The broad policy objective remains to maintain and encourage competition for the benefit of the EU and its citizens. This chapter discusses EU competition law and covers the basic outline of EU competition policy; Art 101 TFEU; Art 101(2) TFEU and the consequence of a breach; Art 101(3) TFEU exemptions; Art 102 TFEU and the abuse of a dominant position; the relationship between Arts 101 and 102 TFEU; the enforcement of EU competition law; conflict of EU and national law, state aid; and EU merger control.
Chapter
Article 102 TFEU deals with the unilateral conduct of undertakings with substantial market power. It thus prohibits one or more undertakings which hold a dominant position in the internal market or a substantial part of it abusing that position insofar as it may affect inter-Member State trade. This chapter discusses the role of Article 102 and the controversy attending its application, and introduces the elements which must be established before the prohibition applies. The Commission’s review of Article 102 and the publication of its Guidance Paper on enforcement priorities, and the relationship between Article 102 and Article 101, are also considered. The chapter then explores in detail one of the principal limbs of the Article 102 prohibition, namely the concept of an undertaking holding a ‘dominant position’ in a relevant market. The definition of a dominant position in the case law of the Court is discussed, alongside its relation to the concept of substantial market power, including the Commission’s treatment in the Guidance Paper. The chapter then considers how dominance is established, addressing, inter aliai, the definition of the relevant market for the purposes of Article 102; the role of market share in establishing dominance; barriers to entry and other factors indicating dominance; and dominant positions in the digital economy. Article 102
Book
Richard Whish and David Bailey
Competition Law explains competition law and policy in the EU and UK. The intention is to provide the reader with an understanding of competition law and policy, to introduce the reader to key economic concepts, legal principles and tools in competition law, and to provide insights into the numerous different issues that arise when applying competition law to market behaviour. Describing the economic rationale for the law, the chapters consider the application of EU and UK competition law to various business practices, including cartels, cooperation agreements, distribution agreements, licences of intellectual property rights, joint ventures, and mergers. The text has been updated to include the changes to UK law as a consequence of Brexit. It discusses for the first time the rise of powerful digital platforms and the quest for a suitable competition law and regulatory response to this phenomenon. It also considers the implications of the European Green Deal and the sustainability agenda for EU competition law and practice. The text incorporates extensive new legislation, case-law, decisional practice, guidelines and periodical literature at EU and UK level.
Chapter
This chapter discusses the main features of Article 102 of the Treaty of Functioning of the European Union (TFEU), which is concerned with the abusive conduct of dominant firms. It begins by discussing the meaning of ‘undertaking’ and ‘effect on trade between Member States’ in the context of Article 102. It then considers what is meant by a dominant position and looks at the requirement that any dominant position must be held in a substantial part of the internal market. Thereafter it discusses some general considerations relevant to the concept of abuse of dominance, followed by an explanation of what is meant by ‘exploitative’, ‘exclusionary’ and ‘single market’ abuses. It then discusses possible defences to allegations of abuse, and concludes by considering the consequences of infringing Article 102.
