Community legal rules on competition and european competition policy

• Author: Viorina Maria Judeu - Gabriela Bologa
• Position: Canditate Ph.D. Lecturer, AGORA University - Ph.D. Lecturer , AGORA University
• Pages: 58-61

COMMUNITY LEGAL RULES ON COMPETITION AND EUROPEAN COM PETITION POLICY

Judeu Viorina Maria

Bologa Gabriela

Abstract

Treaty on U.E. includes competition among EU pr inciples, specifying mandatory EU sta tes to adopt a n

economic policy in accordance with the principles of open market economy ba sed on fair competition. U.E.

policy competition aimed a t protecting the benefits a rising from the oper ation of competitive markets, while the

nationa l barriers tha t have been raised about the competition between Member States.

Keywords: Community, legal rules, bu siness field, competition.

Introduction

The paper presents the inter nationalization o f business life as to achieve co mmunity goals and

objectives, Union action shall include, inter alia, a system to ensure undistorted competition on the domestic

market. The central ob jective of European competition policy is to ensur e unity of the common market and avoid

monopolization of market sectors. Monopolization of the market can ta ke place by agreement or merger.

The internationalization of business life is a powerful reality that requires a certain World Trade

Organization and articulation of the various competition rules in force in the world.

1

Competition policy is a component of industrial policy at EU level functioning o f the Commission

Directorate General for Competition, which aims to influence the EU's internal industrial structures t he control

of the a ssociations of companies, joint stock companies and minority acquisitions or actions to prevent the

formation of industrial cartels. 2

For interpretatio n o f the Treaty on EU, concluded that the notion of competition does not have legal

qualifications, the Community T reaties, although they include many provisions relati ng to competition (EU

Treaty, art. 3 g).

To achieve community goals and objectives, Union action shall include, inter alia, a system to en sure

undistorted competition on the d omestic market, although competition i s not an end in itself but an instrument

for achieving the objectives of general community. 3

EU competition policy aims at creating real co mpetition in the common market through measu res relating to

market structure and the behaviour of its actors in order to foster innovation, reduce production costs, increase

efficiency and thus increasing competitiveness of European economy.

Competition in the U.E. is governed by the Treaty C.E. 4 and the Treaty C.E.E.A. 5

Community legal rules on competition can be framed around two main areas: addressing business rules and

regulations to conduct the Member States or public authorities. These relate to:

 ban on restrictive agreements and anticompetitive practices: EU Treaty incompatible with the co mmon

market provides any agreements between companies, d ecisions by associations of under takings and

concerted practices which are likely to af fect trade between Member States or ha ve as their object or

effect the prevention, restriction or distortion of competition within the common market, under penalt y

nullity of law [art. 85 (81) ¶ 1 and 2];

 prohibition on abuse of dominance: the abusive exploitation of a dominant position in the common

market or a substantial part of it performed by one or more c ompanies is incompatible with the common

market and prohibited, as far as trade between Member States can be affected [ art. 86 (82)]. Practically,

this means preventing the exploitation of the economic strength of a company over others;

 control of mergers of co mpanies: to meet competition, complete the single market conditions, it is

necessary to take intervention measures for the control of mergers of companies [R egulation no.

4064/89/C.E.E. Council U.E.];

 State aid control: Member aid granted in any form or throu gh State resources which distorts or threatens

to distortion of competition by favouring certain undertakings or outp uts, as far as it affects trade

between Member States, be incompatible with the common market [art. 92 (87)]. In an interview in

 Canditate Ph.D. Lecturer, AGORA University, e-mail: viorina@univagora.ro

 Ph.D. Lecturer , AGORA University, e-mail: gabi_fiat@yahoo.com

1. Voicu M. Politicile comunitare în Constituia Uniunii Europene, Lumina Lex, Bucharest, 2005, p.79-80.

2 Ionescu V.R. Tratat de Economie european, Didactic şi Pedagogic Publishing House, Bucharest, 2004, p.59.

3 Diaconu N, Marcu V. Drept comunitar. Partea special. Politicile comunitare, Publishing House Lumina Lex, Bucharest, 2003, p.101.

4 art. 85 (81)-94 (89) from Capitolul I - Regulile de concuren, t itle V: Normele comune privind concurena, fiscalitatea şi apropierea

legislaiilor; art. 101(96)-102(97) which are under obligations of Member States to eliminate any disparities between the laws, regulations or

administrative, which distorts competition in the market, p.79.

5 Chapters 5 and 6, Title I - on nuclear energy industry competition, 50.