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EU Competition LAW Essay
Module: EU Law
112 Documents
Students shared 112 documents in this course
University: University of Essex
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EU COMPETITION LAW ESSAY:
Article 101 TFEU – Competition
Why was Article 101 introduced?
Article 101 of the Treaty on the Functioning of the European Union (TFEU)
prohibits any agreements or cartels between Member States that could
disrupt free competition within the internal market. It was introduced as
part of the EU’s general anti-trust rules to prohibit ‘any agreement or
concerted practice which is made between two or more undertakings,
which may affect trade between Member States and which has the object
or effect or preventing, restricting or distorting competition.’[1] Article 101
was, therefore, part of the EU’s drive towards ensuring that fair
competition existed between Member States. This was recognised by the
European Commission when it was pointed out that; ‘Article 101 is to
protect effective competition by ensuring that markets remain open and
competitive.’[2] Any activity that would be likely to distort competition with
the EU is, therefore, prohibited by this Article even if the agreement is
signed outside of the EU since Article 101 effects all trade that would have
an impact on the internal market as identified in Gas Insulated
Switchgear[3] where an agreement between European and Japanese
companies to abstain from bidding in the EU and Japan violated Article
101 on the basis that it ‘contributed directly to the restriction of
competition on the internal market.’[4] Whilst Article 101 only impacts
trade between Member States, the scope of this Article is rather wide
since it covers any trade that would be likely to have an impact upon the
free competition of the internal market.[5] Therefore, if there is a possibility
of trade moving across borders then this will be sufficient enough to fall
within the ambit of Article 101.
Aims of Article 101 TFEU
The main aim of Article 101 is to provide redress to those affected by any
restrictions that are placed on free competition within the internal market.
Free competition is a vital part of the functioning of the internal market
which is why it is imperative that provisions are in place to prohibit any
restrictions that are placed on trade. As put by Frenz; there needs to
remain an ‘open, free and distortion free system of competition within the
European Union.’ This is the primary objective of Article 101 since there
exists no other rights or obligations that are placed on states and private
actors and so Article 101 ‘represents the sole basis for specific substantive
and legal consequences in competition law.’[6]
Changes to the law
The main legal change that was made by Article 101 was the prohibition
that was placed on anti-competitive agreements, including price fixing. It
is provided under Article 101(2) that such agreements would