History of Competition and Cartel Law in the EU
The cartel’s right to competition policy first got their start in the American continent because there was no single European market, but only numerous national markets. With the signing of the Treaty of Rome in 1957, competition policy began to be considered as an essential element in the evolution and creation of the free coal and steel market. The nature of economic law necessitated legal norms governing this right. In the EU after the 1980s, there was competition on the ground which included some factors such as neoliberal policies that favored the growth of a free market with British Prime Minister Margaret Thatcher and US President Ronald Reagan.
This policy was a trend that had a significant impact on the European market with the presence of a more current competition law to transform from a mixed economy to a free market economy. Likewise, a large number of cases in the ECJ corresponded to the competition which created a case law that made it possible for the EU Commission to retain power, with the latter being the chief enforcer of competition rules in Article 103 of the Treaty.
Cartel law is one of the central norms which has as its primary mission protect and stimulate free competition to ensure economic prosperity. The cartel consists of the rules of primary treaty law, the decisions of the Courts European Commission and recommendations published by the Commission. These provisions protect competition from deficiencies created within the internal market.
In European competition policy, some of the critical phenomena are the fight against forbidden agreements, the fight against abuse of a dominant market, or the battle against aid that the state provides to companies with a protective character, as these create unfair competition within the market. Competition legislation itself constitutes the central pillar of the market economy and its functioning, and therefore Article 101 of the Treaty of Lisbon provides as follows what agreements are considered prohibited: “
The following are not permitted as incompatible with the internal market: all agreements between undertakings, decisions of associations of companies and concerted practices which may affect trade between the Member States and which have as their object or consequence the obstruction, limiting or distorting competition within the internal market and, in particular, those which:
(a) directly or indirectly set selling or buying prices or any other trading conditions;
(b) restrict or control production, markets, technical development or investment;
(c) share markets or sources of supply;
(d) Apply unequal conditions for transactions equivalent to other trading parties, placing them at a competitive disadvantage;
(e) the link of contracts make it subject to the acceptance by the other parties of additional liabilities of which, by their nature or by commercial use, are not related to the object of such contracts. Any agreement or decision which is prohibited according to this Article shall be automatically void.
But the provisions of paragraph 1 may be declared unenforceable in the case of – any agreement or category of agreement between undertakings, – any decision or decision category of association of businesses, – any concerted practice or concerted practice category contributing improving the production or distribution of goods, or promoting technical or economic progress, by allowing consumers to have a fair share of the benefits derived therefrom, and which: imposes no restrictions on the undertakings concerned which they are not necessary to achieve these objectives;
To ensure effective implementation the internal market, there is necessarily a European competition structure, where every EU member state in partnership with the EU Commission must regulate the competition authority which is responsible for implementing the articles. 101 and 102 of the Lisbon Treaty.
The CA in each State has the power to:
• request that a violation not be repeated;
• order detention;
• accept obligations;
•The imposition of fines, periodic payment of penalties or any penalties arising from their national law.
Cooperation between national competition authorities is necessary before investigating the process to determine which competition authority will take over the case and during the process to assist the power of the concerned competition. The mission of the cartel is to protect and stimulate free competition for it to guarantee the functioning of the internal market. But cartel law also pursues goals that are not only in the union’s interest, but also relate to market development, protection of small and medium-sized enterprises, and consumer protection. According to Paul Craig and Grainne de Burca, one of the goals is to protect the consumer from creating efficiency.
According to these authors, this implies that goods and services will be produced to be active and productive where competition reaches the level of perfection. The EU Treaty contains rules which structure the Cartel and Competition as well a single issue to reinforce the Competition Authority’s legal arrangements in the EU Member States to cooperate with them, guaranteeing the protection and security of the stock market.
History of Competition and Cartel Law in the EU
