EU Competition Law

The fundamental goals of EU competition rules is to prevent distortion of competition. It is a condition for achieving a free and dynamic internal market and is one of the instruments promoting general economic welfare. Since the Lisbon Treaty came into force, this objective has no longer been set out expressly in Article 3 TFEU but subsumed into the term ‘internal market’ under Protocol No 27. The conditions for the application of these rules and their legal effects have become so entrenched in the Commission’s administrative practice over many years, and in the case law of the European courts, that they may be regarded as fixed.1 EU Competition law exists to protect the process of competition in a free market EU economy and it is a system

State aid to given undertakings or products is prohibited when it leads to distortions of competition but can be authorised in specific cases. Competition rules also apply to public undertakings, public services and services of general interest. However, exceptions may be granted where application of the rules would jeopardise the realisation of the objectives of those services. EU competition Law applies to all countries in European Economic Area (EEA) which unites the EU Member States and the EEA EFTA States into an Internal Market governed by the same basic rules. European competition law promotes the maintenance of competition by regulating anti-competitive conduct by companies to ensure that they do not create cartels and monopolies that would damage the interests of society. Competition wanted because of the market result it produces efficiency, low prices and innovations. Competition rules limit the freedom of the market players in order to protect the process of competition, at the same time it preserves freedom of others

Competition law pursues its goals as it prevents agreements restrictive of competition- Horisontal agreements (among competitors), Vertical agreements ( between parties at different levels of the production of distributions chain ), controls market power and its abuse, controls oligopolistic markets and prevents mergers which could be lead to a concentration in market