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Summary ALL Readings for FOUNDATIONS OF EU COMPETITION LAW

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Summary ALL Readings for FOUNDATIONS OF EU COMPETITION LAW (3574FEU4KY) from the book "Competition Law in the EU; Principles, Substance, Enforcement" and prescribed cases taught at the University of Amsterdam. Course Elective that is part of different LL.M. Programs.

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  • 10 februari 2025
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EUCL: Summary.

Week 1: Introduction.
Competition: process of rivalry between companies → companies act so
that customers buy from them rather than from other companies.
Competition law promotes or seeks to
maintain market competition by
regulating anti-competitive conduct by
companies.

Goals of competition law:
- Protect competition in order to:
o Maximize consumer welfare.
Different from protection of consumers’ interests
(GlaxoSmithKline).
 This is a classic foal of consumer law rather than
competition law.
 It does entail:
 Allocative efficiency → goods and services are
allocated in the best possible way on the basis of
prices consumers want to pay.
 Productive efficiency → goods and services are
produced at lowest cost possible.
 Dynamic efficiency → research and development
to improve products.
o Establish the internal market.
Usually the Union cares about the internal market more than
the consumers itself.
 May also be good for consumers.
o The competition process (GlaxoSmithKline).
Aim of competition law eventually is to ensure equal
opportunities.
 Practices must be efficient and fair.
 The interest of competitors themselves.
It is in the interest of an average, circumspect market
operator that competition is not restricted.
o Fundamental rights and significant values (Roquette Frères;
TeliaSonera; CK Telecoms UK Investments).
- Sometimes less competition may be better.
May have good social outcomes when one dominances the market.

The substantive rules on competition:
a. Those addressed to actors in the markets.

, o Prohibition of agreements and practices restricting
competition (Art. 101 TFEU).
o Prohibition on abuse of dominant position (Art. 102 TFEU).
o Prohibition on concentrations distorting competition (Merger
Control Regulation).
b. Those addressed to states.
o Prohibition on state aid distorting competition (Art. 107
TFEU).
o Prohibition on anti-competitive measures taken by the state
with regard to specific undertaking (Art. 106(1) TFEU).
Procedural rules on competition:
- The Commission can carry out investigations and impose sanctions
→ centralized enforcement.
o Decisions may be appealed against before the GC (Art. 263
TFEU); higher appeal may occur before the CJEU.
 Right to an effective remedy and fair trial (cf. Art. 6
ECHR and Art. 47 Charter).
- National Competition Authorities (NCA) can do so (Art. 5 R1/2003)
→ decentralized.
Can be deducted from the direct effect from Art. 101(1)(3) and
102 TFEU.
o For both national and European competition law (Art. 35
R1/2003).
 Subject to judicial review (cf. Art. 6 ECHR; Art. 47 i.c.w.
51 Charter).
 Possibility of preliminary questions (Art. 267 TFEU).

In relation to competition law → private enforcement is a possibility.
This consists of two components:
a. Nullity of agreements.
b. Damage claims (Courage v. Crehan).
This can only take place at the national level as it is horizontal
relationships.

Some significant concepts in competition law are:
- Undertaking.
Every entity engaged in economic activities is an undertaking
within the meaning of European competition law (Höfner).
o Offering of goods and services.
o Limits to this concept.
 Exercise of official authority does not amount to
economic activity.
 Activities typical for the public domain.

, o Not when governmental entities act in
commercial capacity.
 Social security.
Depends on the design of the social security system
concerned whether the bodies managing this system are
engaged in economic activities and qualify as
undertakings.
 Must be primarily based on solidarity;
 And subject to substantial state control.
 Education.
 Predominantly financed by the state;
 And not engaged in an economic activity.
o Comes down to following test if competition law applies:
 Supply of goods or services is mainly dependent on
public funding;
 Aim of this funding is the pursuit of a public interest
goal;
 The activities under review are closely related to this
goal.
o All subsidiaries and parent companies are considered as one
undertaking → form an economic unit.
 Internal agreements do not fall within the scope of
competition law.
 If one subsidiary violated competition law, it also affects
the other subsidiaries.
- Market definition.
One could only argue practices of firms are harmful for competition
if the special characteristics of a given market are identified.
o On the basis of product / service: the relevant product
market.
 The criterion of substitution must be applied.
The features and the intended use of the products
concerned (United Brands).
 Demand substitution:
Product may be replaced by another product from
the perspective of the consumer.
 Supply substitution:
Whether suppliers are able to switch production.
 Small but significant nontransitory increase in
price (SSNIP).
If a relatively small change of price for a product
determines the consumer to switch to another product,
these belong to the same market.

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