Presentation - Nemec

8/3/2019 Presentation - Nemec

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Jay Nemec

Can the EU Competition policy prevent unfairtrading of transnational enterprises and how?The Institutional Framework for EU Integration


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Table of Contents

Introduction

Areas of the Competition Policy

Integration Theory

Competition Policy in Practice

Conclusion


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Introduction

Competition helping to develop the market

Encouragement of firms

Consumers expect the best quality

Competition helps to achieve these expectations

However the EU integration process does not make the competitioneasier


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The Commission is empowered by the Treaty on the Functioning ofthe EU to cover the Competition Area.

The Competition Law - Antitrust is regulated by Article 101 of theTreaty. Hence, the first Area discussed is Antitrust.


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Article 101 of TFEU

1. The following shall be prohibited as incompatible with the internal market: all agreementsbetween undertakings, decisions by associations of undertakings and concerted practiceswhich may affect trade between Member States and which have as their object or effect the

prevention, restriction or distortion of competition within the internal market [...]

2. Any agreements or decisions prohibited pursuant to this Article shall be automatically void.

3. The provisions of paragraph 1 may, however, be declared inapplicable in the case of:

any agreement or category of agreements between undertakings,

- any decision or category of decisions by associations of undertakings,

- any concerted practice or category of concerted practices,

which contributes to improving the production or distribution of goods or to promoting technicalor economic progress, while allowing consumers a fair share of the resulting benefit [...]


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Article 102 of TFEU

Any abuse by one or more undertakings of a dominant position withinthe internal market or in a substantial part of it shall be prohibited asincompatible with the internal market in so far as it may affect trade

between Member States.


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Mergers

They can be referred as fusion

How does the EU examines which mergers are authorised and whichnot?

If the annual turnover of the combined businesses exceeds specifiedthresholds in terms of global and European sales, the proposedmerger must be notified to the European Commission, which mustexamine it.


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Cartels

Specific type of an antitrust enforcement.

Cartels function as groups of companies

Commission depends on cooperation with other firms which hand outevidences of Cartels.


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Liberalisation of services

State Aid control

Policy areas cover different sectors of the market, from energy toagriculture or sports


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Integration Theory

The EU as a controlling body

Supranational governance

Neofunctionalism


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Competition Policy in Practice

Web browser choice for European consumers

Microsoft Internet Explorer tied to the OS (Windows)

The antitrust proceeding against Microsoft started in December 2007in the case COMP/C-3/39530 (Microsoft (Tying)) within the meaningof Article 11(6) of Regulation No 1/2003 and Article 2(1) of Regulation

No 773/2004.

Windows could not be legally obtained without Internet Explorer

Commitment proposed by Microsoft


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Web browser choice for

European consumers

Results:

2006: Internet Explorer 80-86% of share

2011: Internet Explorer 34% of share


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Sales of E-books

Proceeding opened not even a month ago against Apple

Cartel behaviour

Investigation of sale of e-books

Amazon vs (Apple + Publishers)


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Conclusion

The Competition Policy is successful in controlling the Europeanmarket

Shows how a healthy competition is important for the market

Neofunctionalism works best in the case of the Competition Policy

The EC competition policy regime represents one of the best successstories of the regional integration process. However, is it an exceptionor a prototype for other supranational policies?

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Presentation - Nemec