The possession or strengthening of a dominant position by way of competition does not fall within the scope of the prohibition. The prohibition of an abuse of a dominant position art. Since september 2016, the commission has also been making use of an accelerated settlement tool in addressing infringements of article 102 tfeu under the cooperation procedure. Article 102 tfeu abuse of a dominant position chapter 4. In european competition law it has been considered that unfair prices, as it is used in article 102 a tfeu, should not only include exclusionary high prices, but also prices which, without reinforcing it, represent a mere exercise of the market power legitimately acquired by the dominant firm. Structure of article 102 tfeu existence of a dominant position definition of the relevant market measuring market power. Article 102 tfeu complements the regulations of eu competition law dealing with agreements between two or more undertakings. Article 102 tfeu provides a nonexhaustive list of examples of abusive practice. Article 102 ex article 82 tec any abuse by one or more undertakings of a dominant position within the internal market or in a substantial part of it shall be prohibited as incompatible with the internal market in so far as it may affect trade between member states.
Thereupon, the separate existence of keepep will cease and texaco will be the. Consolidated version of the treaty on the functioning of. Impact of the new approach to article 102 tfeu on the. In that case, possession of intellectual property rights ipr is recognized. Article 101 tfeu is one of the three pillars of eu competition law. For example, train from brussels to paris, 70 seats and train costs 3,600 euro to run each trip. Article 102 of the treaty on the functioning of the. Chapter 7 article 104 tfeu competence of authorities in member states. The law and economics of article 102 tfeu is a great book. As from 1 december 2009, the lisbon treaty significantly revised and renamed the treaty on the functioning of the european union. Exploitative prices in european competition law by antonio.
Eu competition law rules applicable to merger control. On 2 march 2016, the german bundeskartellamt bka launched an investigation against facebook under art. Every treaty and every international agreement entered into by any member of the united nations after the present charter comes into force shall as soon as possible be registered with the secretariat and published by it. If article 102 was not in place, competition would be capable of being distorted as firms would be free to collude or merge with their competitors and place unnecessary restrictions on the market. Article 102 tfeu, by prohibiting abuse of a dominant position by one or more undertakings, controls abuse behaviour by an undertaking, or undertakings, which have significant market power. Article 101 tfeu touches upon coordinated behaviour between undertakings, whereas article 102 concerns the unilateral action of an undertaking. The absence of defined criteria led some commentators to fear that article 102 tfeu would ultimately become a dead letter. It prohibits restrictive agreements between independent market operators acting either at the same level of the economy horizontal agreements, often as actual or potential competitors, or at different levels vertical agreements, mostly as producer and distributor.
In both cases, for eu law to apply at all, there must be the possibility of an effect on trade between mamber. The law and economics of article 102 tfeu download ebook. The treaty on the functioning of the european union tfeu came into force on 1 december 2009 following the ratification of the treaty of lisbon, which made amendments to the treaty on european union and the treaty establishing the european community tec. The provision restricts certain conduct by undertakings which have a dominant position in a given market. Article 102 tfeu governs abusive conduct by dominant undertakings. Rebates and article 102 tfeu commission duty to apply. Eu competition law abuse of dominance article 102 tfeu. This paper shows that the european union eu courts caselaw and the general principles of eu law place the european commission commission under a. The role of article 102 in european pharmaceutical sector. Property rights as abuse of dominant position in eu. Glossarytreaty on the functioning of the european union tfeu related contentone of the two main treaties that form the basis of eu law. Article 102 prohibits the abuse of a dominant position the holding of a dominant market position is not, by itself, objectionable under article 102 practices that are legitimate when carried out by nondominant undertakings may be unlawful for dominant ones need to distinguish abusive from legitimate market behaviour.
The tfeu is an amended and renamed version of the tec. The german and romanian abuse of market dominance in the light of article 102 tfeu. For the purposes set out in article 3 of the treaty on european union, the activities of the member states and the union shall include, as provided in the treaties, the adoption of an economic policy which is based on the close coordination of member states economic policies, on the internal market and on the definition of common objectives, and conducted. Eu competition law ii abuse of a dominant position. Antitrust law by richard markovits to our understanding of us and eu antitrust laws. Likewise, at the time article 102 tfeu was enacted, article 667 ecsc had never been applied either. Price discrimination article 102 c background in pure efficiency terms, price discrimination can be a good thing.
Article 14 ex article 16 tec without prejudice to article 4 of the treaty on european union or to articles 93, 106 and 107 of this treaty, and given the place occupied by services of general economic interest in the shared values of the union as well as their role in promoting social and territorial cohesion, the union and the. Eu competition law eu competition law merger legislation. On 19 december 2017, in its preliminary assessment, the authority declared that facebook is abusing its dominant position through the imposition of misleading privacy policies regarding data collected from thirdparty websites. The tfeu includes enhancements to the social dimension of the european union. Abuse of a dominant position, merger control last update. Its core role is the regulation of monopolies, which restrict competition in private industry and produce worse outcomes for consumers and society. Chapter 6 article 103 tfeu regulation regarding the application of arts 101 and 102. Chapter 8 article 105 tfeu application of arts 101 and 102. Two or more undertakings intend to merge and propose this concentration to the competition authority. In the eu, unilateral or dominant firm conduct is governed by article 102 tfeu. If charge 100 per seat then 50% full 100 x 35 3,500 if. The european commissions duty to apply the guidance paper nicolas petit.
Basic concepts and case studies nicolas petit university of liege 11 july 2011 summer program in eu and international business law. Pdf the german and romanian abuse of market dominance in. Formerly known as the ec treaty, the treaty of rome or the treaty establishing the european community. Impact of the new approach to article 102 tfeu 95 contained in article 102 tfeu. The dominance of many global players such as microsoft or intel is a direct result of their inventions and. In contrast, article 101 has in many respects undergone a change to allow for economical. Treaty on the functioning of the european union eurofound. This article aims to assess one of the many contributions of economics and the interpretation and application of u. This site is like a library, use search box in the widget to get ebook that you want.
Article 102 tfeu has been the target of vast criticism the recent years. In order to achieve the objectives of the antitrust rules, eu needs an effective enforcement system for enforcing eu competition law. A legal perspective on article 102 tfeu case law 1 beyond the more economicsbased approach. You can read the the law and economics of article 102 tfeu book on our website. It is critically important from a policy perspective as well as a legal predictability point of view that the determinative legal framework safeguards both i businesses ex ante incentives to invest in innovation and research and development and.
In particular, article 102 tfeu prohibits undertakings that individually or collectively hold a dominant position within the eu or a substantial part of it from abusing their dominance without objective justification insofar as it may affect trade between member states. Treaty on the functioning of the european union tfeu. The principles of the application of the polish prohibition of dominant position abuse laid down in article 9 of the competition act3 cannot remain unaffected by this reform. Eu competition law revision notes law m100 cardiff.
Article 102 tfeu, aimed at serving the ordoliberal agenda. Article 102 of the treaty on the functioning of the european union formerly article 82 of the treaty establishing the european community is aimed at preventing undertakings who hold a dominant position in a market from abusing that position. Click download or read online button to get the law and economics of article 102 tfeu book now. Finally, it addresses the idea of elimination of competition in respect of a substantial part of the market article 101 3 tfeu, ex article 81 3 b ec, in which the last two types of market power article 102 tfeu, ex article 82 ec and eu merger regulation converge. Competition law provisions can be found in article 101, 102, 107 tfeu and the merger regulation, all of those prohibit anticompetitive agreements and abuse of dominance.
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