What is Competition Policy European Commission?
What is Competition Policy European Commission?
Competition policy encourages companies to offer consumers goods and services on the most favourable terms. It encourages efficiency and innovation and reduces prices. To be effective, competition requires companies to act independently of each other, and subject to the pressure exerted by their competitors.
How can EU European Union play a role in competition?
It promotes the maintenance of competition within the European Single Market by regulating anti-competitive conduct by companies to ensure that they do not create cartels and monopolies that would damage the interests of society.
What percentage of global group revenue can be assessed as a fine for an EU competition law violation?
In the case of anti-competitive agreements and abuse of dominance, the CCI may impose fines of up to 10 percent of the average turnover for the last three preceding financial years upon each of such persons or enterprises that are parties to such agreements or abuse.
Who enforces competition law in the EU?
The European Commission
The European Commission enforcing competition law in the EU: Article 101 – This article prohibits agreements between two or more organisations which have the purpose to restrict market competition, with reference to horizontal and vertical agreements.
What is the difference between Article 101 and Article 102?
Article 101 prohibits anti-competitive agreements between two or more independent market operators. Article 102 prohibits abusive behaviour by companies holding a dominant position on any given market.
Why does the EU need competition policy?
Better competitors in global markets: Competition within the EU helps make European companies stronger outside the EU too – and able to hold their own against global competitors.
Which type of action is part of the EU competition policy?
EU competition policy aims to protect the efficient functioning of markets from competition distortions, whether originating from Member States (distortive State aid), market players (distortive unilateral or coordinated behaviour), or mergers that would significantly impede effective competition.
What does Article 102 Prohibit?
Article 102 of the Treaty on the Functioning of the European Union (TFEU) prohibits abusive conduct by companies that have a dominant position on a particular market.
What effect does competition have on suppliers?
If there are capacity constraints along the supply chain, an increase in competition in the customers’ industry can increase demand for suppliers, especially financially unconstrained suppliers, as those suppliers are less likely to experience production disruptions due to financial distress, and hence are more …
