Competition Law

This basic test of whether or not interstate trade was affected was dealt with by the E .C .J . in Sociyty Technique Miniire v . Maschinenbau Ulm , the E .C .J . held that it must be possible to foresee with a sufficient degree of probability on the basis of a set of objective factors of law or of fact that the agreement in question may have an influence , direct or indirect , actual or potential , on the pattern of trade between Member States

Economic Approach

The adoption of an economic approach first , ensures that

legal provisions are not rendered ineffective due to anti-competitive behaviour . This approach applies a more consistent treatment to the different practices , because a similar treatment is accorded to practices with the same outcome

Second , this approach ensures that the statutory provisions do not achieve an unjustified frustration of competitive strategies . Hence , a competition policy approach that recognizes this fact will guarantee the protection of consumers and also encourage increased productivity and growth

The EU competition law has progressed towards a policy that depends on a market centered economy and in 2004 an enforcement procedure incorporating these considerations was implemented by the European Community

The necessity to adopt an approach that is more economic based to market definition , dominance and abuse has been conceded by the European Commission . Undertakings with a market share in excess of fifty percent can easily establish that they are not dominating the market and this stance has been accepted by the Commission

Daimler Chrysler secured a highly significant reduction of the fines imposed on it by the Commission for alleged infringements of Art .81 on the German , Spanish and Belgian car market in 2001 . The CFI annulled two of the three findings of infringements , which resulted in a reduction of the fine from ? 71...