What Does Competition Law Prohibit

Usually, when most people hear the term “antitrust law,” they think of monopolies. Monopolies refer to the domination of an industry or sector by an enterprise or enterprise with the elimination of competition. Course contentThis course examines EU competition law governing these anti-competitive agreements and practices (Articles 101 and 102 and EU Merger Regulation). It examines law in its historical, theoretical and political context. The course begins by examining the underlying objectives of the competition rules, as they fall within the framework of the EU Treaty and the TFEU, as well as the enforcement mechanisms of the rules by public enforcement authorities and individuals. A first question that therefore arises is whether competition law deals exclusively with “competition” and “economic” issues or whether other objectives have shaped its content, e.B. the objectives of integrating the internal market, protecting small but perhaps less effective enterprises, preventing unemployment, protecting the environment or eliminating regional disparities? Can manufacturers and importers of washing machines agree not to manufacture or import less efficient washing machines in order to increase the price of the machines and reduce consumer choice, while benefiting the environment? Can the organizing committee of the Madrid fashion show refuse to let models with a low BMI (body mass index) work because there is a risk of promoting anorexia? Individuals could also face disqualification of directors or even criminal prosecution for serious violations of competition law. If competition law stands out for you as an interesting field of activity, read this page for important information needed to understand this area of law. Examples of the types of agreements generally prohibited under Chapter I and Section 101 include: While the development of competition law in Europe was at a standstill in the late 19th century, Canada adopted the first modern competition law in 1889.

The Combination Prevention and Removal Act, which was created to restrict trade, was passed a year before the United States passed the most famous competition law law, the Sherman Act of 1890. It was named after Senator John Sherman, who argued that the law “does not announce a new legal principle, but applies old and recognized principles of the common law.” [31] The Fair Trading Act 1973 is the UK law that extended UK competition law to control monopolies, mergers and acquisitions, restrictive trade agreements and resale prices. The law created the Office of Fair Trading. In many developing countries in Asia, including India, competition law is seen as a tool to stimulate economic growth. In Korea and Japan, competition law prevents certain forms of conglomerates. In addition, competition law has promoted fairness in China and Indonesia as well as international integration in Vietnam. [1] The Hong Kong Competition Ordinance entered into force in 2015. [43] No introduction to antitrust law would be complete without addressing mergers and acquisitions. We can divide them into horizontal, vertical and potentially competitive mergers. As far as EU law is concerned, if a UK company engages in unfair trading practices as part of a cartel or attempts to merge in a way that would disrupt the market, EU law will apply exclusively. Article 101 of the Treaty on the Functioning of the European Union (TFEU) prohibits agreements between undertakings, decisions by associations of undertakings and concerted practices which are liable to affect trade between Member States and which have as their object the prevention, restriction or distortion of competition.

An example of such an anti-competitive practice, which is prohibited by law, would be excessive pricing, where a company with the largest market share or the monopoly holder charges an extreme price for something that is a necessary purchase for the consumer. UK and EU competition law prohibits two main types of anti-competitive activities: the Competition and Markets Authority (CMA) is the UK`s main competition law enforcement body, although a number of industry regulators are simultaneously empowered to enforce competition law in their respective sectors. These include fca for the financial services sector, Ofgem for the electricity sector and Ofwat for the water sector. According to the World Bank`s 2013 report “Republic of Armenia Accumulation, Competition, and Connectivity Global Competition”, the Global Competitiveness Index suggests that Armenia is the lowest among ECA countries (Europe and Central Asia) in terms of the effectiveness of antimonopoly policies and the intensity of competition. .