Competition law of the European Community:
Gespeichert in:
| Format: | Buch |
|---|---|
| Sprache: | English |
| Veröffentlicht: |
The Hague [u.a.]
Kluwer Law International
2005
|
| Ausgabe: | 4. ed. |
| Schlagworte: | |
| Online-Zugang: | Inhaltsverzeichnis |
| Beschreibung: | XL, 1682 S. |
| ISBN: | 9041123091 |
Internformat
MARC
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| 650 | 7 | |a Europees recht |2 gtt | |
| 650 | 7 | |a Mededingingsrecht |2 gtt | |
| 650 | 4 | |a Europarecht | |
| 650 | 4 | |a Antitrust law |z European Economic Community countries | |
| 650 | 4 | |a Cartels |z European Union countries | |
| 650 | 4 | |a Exclusive contracts |z European Union countries | |
| 650 | 4 | |a Restraint of trade |z European Union countries | |
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Datensatz im Suchindex
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|---|---|
| adam_text | TABLE OF CONTENTS
PREFACE V
ABOUT THE AUTHORS VII
1. INTRODUCTION 1
A TIME OF CHANGE 1
§1.1. RECENT DEVELOPMENTS - MODERNIZATION AND CONVERGENCE 1
§1.2. OTHER SIGNIFICANT CHANGES SINCE THE THIRD EDITION 4
INSTITUTIONS 6
§1.3. SUMMARY OF INSTITUTIONS 6
§1.4. THE COMMISSION 7
(1) GENERAL 7
(2) ROLE OF THE COMMISSION 7
(3) ORGANIZATION OF THE COMMISSION 8
(4) CONCLUSION ON THE COMMISSION 12
§1.5. THE COUNCIL OF MINISTERS 12
§1.6. THE EUROPEAN PARLIAMENT 13
§1.7. THE ADVISORY COMMITTEES 14
§1.8. THE ECONOMIC AND SOCIAL COMMITTEE 15
§1.9. THE COURT OF FIRST INSTANCE 15
§1.10. THE COURT OF JUSTICE 17
§1.11. THE COMPETITION AUTHORITIES OF THE MEMBER STATES 17
§1.12. NATIONAL COURTS 19
§1.13. TRANSPARENCY OF INFORMATION 20
ENFORCEMENT 22
§1.14. ENFORCEMENT POLICY AND PRIORITIES - FROM SINGLE MARKET
INTEGRATION TO CARTELS AND ABUSES OF DOMINANT POSITION 22
§1.15. ENFORCEMENT TECHNIQUE 23
§1.16. ENFORCEMENT PROCEDURE 24
§1.17. INTERNATIONAL COLLABORATION IN ENFORCEMENT 24
2. BASIC PRINCIPUES 27
ARTICLE 81: AGREEMENTS AND OTHER CONCERTED ACTIONS
THAT ARE RESTRICTIVE OF COMPETITION 27
§2.1. INTRODUCTION 27
§2.2. TEXT OF THE ARTICLE 27
COMPETITION LAW OF THE EUROPEAN COMMUNITY
ARTICLE 81(1): THE PROHIBITION OF AGREEMENTS AND
OTHER CONCERTED ACTION 28
§2.3. CONDITIONS OF PROHIBITION 28
§2.4. THE MEANING OF AN UNDERTAKING 29
(1) THE ENTITY MUST BE ENGAGED IN AN ECONOMIC ACTIVITY 29
(2) THE LEGAL STATUS OF THE ENTITY DOES NOT MATTER 31
§2.5. AGREEMENT OR CONCERTED ACTION: REQUIREMENT OF MORE THAN ONE
INDEPENDENT UNDERTAKING 34
(1) UNILATERAL ACTION EXCLUDED 34
(2) EMPLOYEE RELATIONSHIPS 35
(3) AGENCY RELATIONSHIP 35
(4) RELATED COMPANIES: THE ECONOMIC ENTITY 36
(5) COMPANIES RELATED BY SUCCESSION 38
§2.6. FORMS OF PROHIBITED CONDUCT 40
(1) AGREEMENT 40
(2) DECISIONS BY ASSOCIATIONS OF UNDERTAKINGS 49
(3) CONCERTED PRACTICES 50
§2.7. STATE COMPULSION 62
(1) STATE MEASURES REQUIRING ANTI-COMPETITIVE CONDUCT 62
(2) STATE MEASURES RESTRICTING COMPETITION 67
§2.8. RESTRICTION OF COMPETITION 68
(1) RESTRICTION BY OBJECT OR EFFECT 69
(2) APPRECIABLE RESTRICTION OF COMPETITION 73
(3) NATURE OF COMPETITION WHICH MAY BE RESTRICTED 77
(4) ANCILLARY RESTRAINTS FALLING OUTSIDE THE SCOPE OF ARTICLE 81(1) 79
(5) DOES A RULE OF REASON APPLY TO ARTICLE 81(1)? 80
ARTICLE 81(2): THE NULLITY SANCTION 82
ARTICLE 81(3): EXEMPTION FROM THE PROHIBITION 83
§2.9. INTRODUCTION 83
§2.10. GENERAL PRINCIPLES FOR THE APPLICATION OF ARTICLE 81(3) 84
(1) EXEMPTION ONLY APPLIES FOR AS LONG AS THE FOUR RELEVANT
CONDITIONS ARE FULFILLED 84
(2) HARDCORE RESTRICTIONS 85
(3) RELATIONSHIP BETWEEN ARTICLE 81(3) AND ARTICLE 82 85
§2.11. THE FOUR SUBSTANTIVE CONDITIONS UNDER ARTICLE 81(3) 87
§2.12. EFFICIENCY GAINS: THE CONTRIBUTION TO PRODUCTION OR DISTRIBUTION
OR TO TECHNICAL OR ECONOMIC PROGRESS (FIRST CONDITION UNDER
ARTICLE 81(3)) 87
(1) THE EFFICIENCIES MUST CREATE OBJECTIVE, COMPENSATORY BENEFITS ....
87
(2) EVIDENTIARY BURDEN
TABLE OF CONTENTS
(3) DIFFERENT FORMS OF EFFICIENCY GAINS 89
§2.13. CONSUMER WELFARE: THE FAIR SHARE OF THE BENEFITS CRITERION
(SECOND
CONDITION UNDER ARTICLE 81(3)) 90
(1) GENERAL PRINCIPLES APPLYING TO THE PASSING ON OF EFFICIENCIES 90
(2) ASSESSMENT OF PASS-ON OF COST EFFICIENCIES 92
(3) ASSESSMENT OF PASS-ON OF VALUE IN THE CASE OF NEW OR IMPROVED
PRODUCTS 95
§2.14. INDISPENSABILITY OF THE RESTRICTION TO ACHIEVE PRO-COMPETITIVE
EFFECTS
(THIRD CONDITION UNDER ARTICLE 81(3)) 95
(1) INDISPENSABILITY OF THE AGREEMENT 96
(2) INDISPENSABILITY OF INDIVIDUAL RESTRICTIONS 96
§2.15. PRESERVING EFFECTIVE COMPETITION: THE ELIMINATION OF
COMPETITION
CONDITION (FOURTH CONDITION UNDER ARTICLE 81(3)) 97
(1) RESIDUAL COMPETITION ON THE MARKET 97
(2) ACTUAL MARKET CONDUCT 98
(3) PAST COMPETITIVE INTERACTION 98
(4) DIFFERENTIATED PRODUCTS 98
(5) POTENTIAL COMPETITION AND ENTRY BARRIERS 99
§2.16. BLOCK EXEMPTIONS 99
EFFECT ON TRADE BETWEEN MEMBER STATES 100
§2.17. INTRODUCTION 100
§2.18. THE CONCEPT OF TRADE 101
§2.19. ESTABLISHING AN EFFECT ON TRADE 102
(1) PATTERN OF TRADE TEST 102
(2) STRUCTURAL TEST 105
§2.20. EFFECT ON TRADE MUST BE APPRECIABLE 106
(1) GENERAL PRINCIPLE 106
(2) THE NAAT RULE 107
§2.21. APPLICATION OF THE APPRECIABILITY TEST TO COMMON TYPES OF
AGREEMENTS AND ABUSES 109
(1) AGREEMENTS AND ABUSES COVERING OR IMPLEMENTED IN SEVERAL
MEMBER STATES 109
(2) AGREEMENTS AND ABUSES COVERING A SINGLE MEMBER STATE OR ONLY
PART OF ONE U0
(3) AGREEMENTS AND ABUSES INVOLVING IMPORTS AND EXPORTS WITH
UNDERTAKINGS LOCATED IN THIRD COUNTRIES OR INVOLVING
UNDERTAKINGS LOCATED IN THIRD COUNTRIES 113
ARTICLE 82 AND THE CONCEPT OF DOMINANCE 115
§2.22. SCOPE OF ARTICLE 82
LL5
§2.23. DEFINITION OF A DOMINANT POSITION 117
COMPETITION LAW OF THE EUROPEAN COMMUNITY
ARTICLE 81(1): THE PROHIBITION OF AGREEMENTS AND
OTHER CONCERTED ACTION 28
§2.3. CONDITIONS OF PROHIBITION 28
§2.4. THE MEANING OF AN UNDERTAKING 29
(1) THE ENTITY MUST BE ENGAGED IN AN ECONOMIC ACTIVITY 29
(2) THE LEGAL STATUS OF THE ENTITY DOES NOT MATTER 31
§2.5. AGREEMENT OR CONCERTED ACTION: REQUIREMENT OF MORE THAN ONE
INDEPENDENT UNDERTAKING 34
(1) UNILATERAL ACTION EXCLUDED 34
(2) EMPLOYEE RELATIONSHIPS 35
(3) AGENCY RELATIONSHIP 35
(4) RELATED COMPANIES: THE ECONOMIC ENTITY 36
(5) COMPANIES RELATED BY SUCCESSION 38
§2.6. FORMS OF PROHIBITED CONDUCT 40
(1) AGREEMENT 40
(2) DECISIONS BY ASSOCIATIONS OF UNDERTAKINGS 49
(3) CONCERTED PRACTICES 50
§2.7. STATE COMPULSION 62
(1) STATE MEASURES REQUIRING ANTI-COMPETITIVE CONDUCT 62
(2) STATE MEASURES RESTRICTING COMPETITION 67
§2.8. RESTRICTION OF COMPETITION 68
(1) RESTRICTION BY OBJECT OR EFFECT 69
(2) APPRECIABLE RESTRICTION OF COMPETITION 73
(3) NATURE OF COMPETITION WHICH MAY BE RESTRICTED 77
(4) ANCILLARY RESTRAINTS FALLING OUTSIDE THE SCOPE OF ARTICLE 81(1) 79
(5) DOES A RULE OF REASON APPLY TO ARTICLE 81(1)? 80
ARTICLE 81(2): THE NULLITY SANCTION 82
ARTICLE 81(3): EXEMPTION FROM THE PROHIBITION 83
§2.9. INTRODUCTION 83
§2.10. GENERAL PRINCIPLES FOR THE APPLICATION OF ARTICLE 81(3) 84
(1) EXEMPTION ONLY APPLIES FOR AS LONG AS THE FOUR RELEVANT
CONDITIONS ARE FULFILLED 84
(2) HARDCORE RESTRICTIONS 85
(3) RELATIONSHIP BETWEEN ARTICLE 81(3) AND ARTICLE 82 85
§2.11. THE FOUR SUBSTANTIVE CONDITIONS UNDER ARTICLE 81(3) 87
§2.12. EFFICIENCY GAINS: THE CONTRIBUTION TO PRODUCTION OR DISTRIBUTION
OR TO TECHNICAL OR ECONOMIC PROGRESS (FIRST CONDITION UNDER
ARTICLE 81(3)) 87
(1) THE EFFICIENCIES MUST CREATE OBJECTIVE, COMPENSATORY BENEFITS ....
87
(2) EVIDENTIARY BURDEN . . 88
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(3) DIFFERENT FORMS OF EFFICIENCY GAINS 89
§2.13. CONSUMER WELFARE: THE FAIR SHARE OF THE BENEFITS CRITERION
(SECOND
CONDITION UNDER ARTICLE 81(3)) 90
(1) GENERAL PRINCIPLES APPLYING TO THE PASSING ON OF EFFICIENCIES 90
(2) ASSESSMENT OF PASS-ON OF COST EFFICIENCIES 92
(3) ASSESSMENT OF PASS-ON OF VALUE IN THE CASE OF NEW OR IMPROVED
PRODUCTS 95
§2.14. INDISPENSABILITY OF THE RESTRICTION TO ACHIEVE PRO-COMPETITIVE
EFFECTS
(THIRD CONDITION UNDER ARTICLE 81(3)) 95
(1) INDISPENSABILITY OF THE AGREEMENT 96
(2) INDISPENSABILITY OF INDIVIDUAL RESTRICTIONS 96
§2.15. PRESERVING EFFECTIVE COMPETITION: THE ELIMINATION OF
COMPETITION
CONDITION (FOURTH CONDITION UNDER ARTICLE 81(3)) 97
(1) RESIDUAL COMPETITION ON THE MARKET 97
(2) ACTUAL MARKET CONDUCT 98
(3) PAST COMPETITIVE INTERACTION 98
(4) DIFFERENTIATED PRODUCTS 98
(5) POTENTIAL COMPETITION AND ENTRY BARRIERS 99
§2.16. BLOCK EXEMPTIONS 99
EFFECT ON TRADE BETWEEN MEMBER STATES 100
§2.17. INTRODUCTION 100
§2.18. THE CONCEPT OF TRADE 101
§2.19. ESTABLISHING AN EFFECT ON TRADE 102
(1) PATTERN OF TRADE TEST 102
(2) STRUCTURAL TEST 105
§2.20. EFFECT ON TRADE MUST BE APPRECIABLE 106
(1) GENERAL PRINCIPLE 106
(2) THE NAAT RULE 107
§2.21. APPLICATION OF THE APPRECIABILITY TEST TO COMMON TYPES OF
AGREEMENTS AND ABUSES 109
(1) AGREEMENTS AND ABUSES COVERING OR IMPLEMENTED IN SEVERAL
MEMBER STATES 109
(2) AGREEMENTS AND ABUSES COVERING A SINGLE MEMBER STATE OR ONLY
PART OF ONE 110
(3) AGREEMENTS AND ABUSES INVOLVING IMPORTS AND EXPORTS WITH
UNDERTAKINGS LOCATED IN THIRD COUNTRIES OR INVOLVING
UNDERTAKINGS LOCATED IN THIRD COUNTRIES 113
ARTICLE 82 AND THE CONCEPT OF DOMINANCE 115
§2.22. SCOPE OF ARTICLE 82 115
§2.23. DEFINITION OF A DOMINANT POSITION 117
COMPETITION LAW OF THE EUROPEAN COMMUNITY
$2.24. SUPER-DOMINANCE 119
$2.25. COLLECTIVE DOMINANCE 119
(1) ECONOMIC LINKS OR CONNECTING FACTORS 121
(2) UNIFORM OR COORDINATED CONDUCT 121
$2.26. RELEVANT CRITERIA FOR EVALUATING DOMINANCE 123
(1) MARKET SHARE 123
(2) DEPENDENCE 126
(3) ADDITIONAL STRUCTURAL FACTORS 127
(4) ADDITIONAL BEHAVIOURAL FACTORS 130
MARKET DEFINITION 132
$2.27. INTRODUCTION: THE IMPORTANCE OF MARKET DEFINITION 132
$2.28. THE NOTICE ON MARKET DEFINITION 133
(1) RELEVANT PRODUCT MARKET 135
(2) RELEVANT GEOGRAPHIC MARKET 141
$2.29. PROCESS OF DEFINING THE RELEVANT MARKET 144
$2.30. APPLICATION TO SPECIFIC MARKETS 146
(1) PURCHASING MARKETS 146
(2) TECHNOLOGY MARKETS 147
(3) AFTER-MARKETS 148
THE INTERNATIONAL DIMENSION OF EC COMPETITION LAW ... 149
$2.31. OUTLINE OF THIS SECTION 149
$2.32. EXTRATERRITORIAL APPLICATION OF EC COMPETITION LAW 150
(1) INTRODUCTION 150
(2) THE ECONOMIC ENTITY DOCTRINE 151
(3) THE EFFECTS DOCTRINE 152
(4) THE IMPLEMENTATION DOCTRINE 157
(5) CONSIDERATIONS OF COMITY 158
(6) CONCLUSION 159
$-*33. BILATERAL RELATIONS 160
(1) EU US COOPERATION 161
(2) EU/CANADA COOPERATION 180
(3) EU JAPAN COOPERATION 180
$2.34. MULTILATERAL AGREEMENTS 181
(1) INTERNATIONAL COMPETITION NETWORK 182
(2) ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT 183
(3) UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT 183
(4) WORLD TRADE ORGANIZATION 184
$-*35. THE WIDENING OF THE EU 185
(1) ENLARGEMENT OF 1 MAY 2004 186
TABLE OF CONTENTS
(2) AGREEMENTS WITH THE CANDIDATE COUNTRIES: BULGARIA, ROMANIA
AND TURKEY 189
(3) EUROPEAN ECONOMIC AREA 193
3. VERTICAL AGREEMENTS 203
INTRODUCTION 203
AGENCY AGREEMENTS 205
§3.1. INTRODUCTION 205
§3.2. CATEGORIZATION OF AGENCY AGREEMENTS 206
(1) RISKS RELATED TO CONTRACTS CONCLUDED BY THE AGENT 206
(2) RISKS RELATED TO MARKET-SPECIFIC INVESTMENTS 207
§3.3. EFFECT OF FREEDOM TO SET PRICING 208
§3.4. LEVEL OF RISK 209
§3.5. AGENT FORMS PART OF THE PRINCIPAL S ACTIVITIES 209
§3.6. OBLIGATIONS IMPOSED ON GENUINE AGENTS 211
SUBCONTRACTING AGREEMENTS 211
§3.7. INTRODUCTION 211
§3.8. APPLICATION OF ARTICLE 81(1) TO EXCLUSIVITY PROVISIONS IN
SUBCONTRACTING AGREEMENTS 212
§3.9. THE SUBCONTRACTING NOTICE 213
§3.10. APPLICATION OF ARTICLE 81 OUTSIDE THE SUBCONTRACTING NOTICE 215
DE MINIMIS NOTICE 217
THE VERTICAL AGREEMENTS BLOCK EXEMPTION 217
§3.11. OVERVIEW 217
§3.12. THE SCOPE OF APPLICATION OF THE VERTICAL AGREEMENTS BLOCK
EXEMPTION 218
(1) DEFINITION OF VERTICAL AGREEMENTS 218
(2) PARTIAL EXCLUSION: AGREEMENTS BETWEEN COMPETING UNDERTAKINGS . . 219
(3) PROVISIONS RELATED TO INTELLECTUAL PROPERTY 220
(4) ASSOCIATIONS OF RETAILERS 222
(5) RELATIONSHIP WITH OTHER BLOCK EXEMPTION REGULATIONS 223
§3.13. MARKET SHARE TEST 224
§3.14. HARDCORE RESTRICTIONS 226
(1) RESALE PRICES (ARTICLE 4(A)) 226
(2) RESALE RESTRICTIONS ON THE BUYER (ARTICLE 4(B)) 230
(3) RESTRICTIONS ON THE SUPPLIER (ARTICLE 4(E)) 238
§3.15. NON-COMPETE OBLIGATIONS 239
(1) MAXIMUM DURATION 239
(2) POST-TERM RESTRICTIONS 240
(3) SELECTIVE DISTRIBUTION 241
§3.16. WITHDRAWAL OF THE VERTICAL AGREEMENTS BLOCK EXEMPTION 241
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(1) INDIVIDUAL AGREEMENTS 242
(2) ENTIRE MARKET 243
PARALLEL TRADE AND TERRITORIAL RESTRICTIONS 244
§3.17. INTRODUCTION 244
(1) INTRA-BRAND COMPETITION 245
(2) MARKET INTEGRATION 245
(3) PROTECTION OF THE PARALLEL TRADER 247
§3.18. FORMS OF TERRITORIAL RESTRICTION 247
(1) TREATMENT OF UNILATERAL CONDUCT 249
(2) INTERACTION OF EC COMPETITION LAW WITH INTELLECTUAL PROPERTY
RIGHTS 250
§3.19. DIRECT EXPORT RESTRICTIONS 251
(1) WITHIN THE COMMUNITY 252
(2) OUTSIDE THE COMMUNITY 254
§3.20. OTHER FORMS OF RESTRICTIONS 260
(1) REFUSALS TO SUPPLY AND LIMITATION OF SUPPLY 260
(2) REFERRAL POLICIES AND PASS-OVER PAYMENTS 261
(3) DIFFERENTIAL PRICING 262
(4) PRODUCT DIFFERENTIATION 266
(5) WARRANTY AND AFTER-SALES SERVICE 268
(6) MONITORING SYSTEMS 270
(7) OTHER SCHEMES 270
LIMITED DISTRIBUTION 271
§3.21. INTRODUCTION 271
§3.22. STRUCTURE OF ANALYSIS 272
§3.23. DE MINIMIS NOTICE 273
§3.24. VERTICAL AGREEMENTS BLOCK EXEMPTION 274
§3.25. THE APPLICATION OF ARTICLE 81(1) 274
(1) EXCLUSIVE DISTRIBUTION AGREEMENTS 275
(2) EXCLUSIVE CUSTOMER ALLOCATION AGREEMENTS 280
(3) EXCLUSIVE SUPPLY AGREEMENTS 280
§3.26. THE APPLICATION OF ARTICLE 81(3) 284
(1) EXCLUSIVE DISTRIBUTION AGREEMENTS 284
(2) EXCLUSIVE CUSTOMER ALLOCATION AGREEMENTS 287
(3) EXCLUSIVE SUPPLY AGREEMENTS 288
SELECTIVE DISTRIBUTION 289
§3.27. INTRODUCTION 289
§3.28. STRUCTURE OF ANALYSIS 290
§3.29. DE MINIMIS NOTICE 290
§3.30. THE VERTICAL AGREEMENTS BLOCK EXEMPTION 290
TABLE OF CONTENTS
§3.31. THE APPLICATION OF ARTICLE 81(1) - THE CASE LAW 291
(1) THE NATURE OF THE PRODUCT 292
(2) QUALITATIVE AND PROPORTIONATE CRITERIA 295
(3) QUANTITATIVE CRITERIA 298
(4) NON-DISCRIMINATION - ADMISSION PROCEDURE 299
(5) THE SELECTIVE DISTRIBUTION SYSTEM MUST ENHANCE COMPETITION .... 301
(6) THE STRUCTURE OF THE MARKET: CUMULATIVE EFFECT 301
§3.32. THE APPLICATION OF ARTICLE 81(3) 302
(1) INDIVIDUAL EFFECT 303
(2) CUMULATIVE EFFECT 304
(3) FORECLOSURE OF COMPETITION 306
(4) EXCLUSIVITY AND TERRITORIAL RESTRICTIONS 306
FRANCHISING 307
§3.33. INTRODUCTION 307
§3.34. STRUCTURE OF ANALYSIS 308
§3.35. COMBINATION OF FRANCHISING WITH SPECIFIC FORMS OF DISTRIBUTION
309
(1) SELECTIVE DISTRIBUTION 309
(2) EXCLUSIVE DISTRIBUTION 310
§3.36. DE MINIMIS NOTICE 310
§3.37. THE VERTICAL AGREEMENTS BLOCK EXEMPTION 310
§3.38. CASE LAW AND ADMINISTRATIVE PRACTICE CONCERNING FRANCHISE
AGREEMENTS 312
(1) PRONUPTIA 312
(2) ADMINISTRATIVE PRACTICE OF THE COMMISSION 313
§3.39. TYPES OF RESTRICTIONS IN FRANCHISING AGREEMENTS 313
(1) RESTRICTIONS NECESSARY TO PROTECT THE FRANCHISOR S KNOW-HOW .... 313
(2) RESTRICTIONS PROTECTING THE IDENTITY AND REPUTATION OF THE FRANCHISE
314
(3) LOCATION CLAUSES AND INTRA-FRANCHISE MARKET SHARING 319
§3.40. APPLICATION OF ARTICLE 81(3) TO FRANCHISING AGREEMENTS 320
NON-COMPETE OBLIGATIONS, QUANTITY FORCING AND TYING 322
§3.41. INTRODUCTION 322
(1) NON-COMPETE OBLIGATIONS 322
(2) QUANTITY FORCING 324
(3) TYING 324
§3.42. STRUCTURE OF ANALYSIS 326
§3.43. DE MINIMIS NOTICE 326
§3.44. THE VERTICAL AGREEMENTS BLOCK EXEMPTION 326
§3.45. ANALYSIS OF NON-COMPETE OBLIGATIONS UNDER ARTICLE 81(1) 327
(1) OVERVIEW 327
(2) ESTABLISHING THE EXISTENCE OF MARKET-WIDE FORECLOSURE EFFECTS ....
329
(3) INDIVIDUAL CONTRIBUTION TO FORECLOSURE EFFECTS 335
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(4) INDIVIDUAL AGREEMENTS IN A NETWORK 336
(5) OBJECTIVE JUSTIFICATIONS FOR NON-COMPETE OBLIGATIONS 337
(6) USE OF PREMISES OR EQUIPMENT OWNED BY THE SUPPLIER 337
(7) THE PRACTICAL DIFFICULTIES OF MEASURING FORECLOSURE EFFECTS 338
§3.46. APPLICATION OF ARTICLE 81(1) TO TYING OBLIGATIONS 339
§3.47. APPLICATION OF ARTICLE 81(3) TO NON-COMPETE OBLIGATIONS 340
(1) NON-COMPETE OBLIGATIONS DESIGNED TO PREVENT HOLD-UP
PROBLEMS RELATING TO INVESTMENTS MADE BY THE SUPPLIER 342
(2) NON-COMPETE OBLIGATIONS DESIGNED TO PREVENT HOLD-UP
PROBLEMS RELATING TO THE TRANSFER OF KNOW-HOW BY THE SUPPLIER . . 344
(3) NON-COMPETE OBLIGATIONS DESIGNED TO PREVENT FREE RIDING 344
(4) NON-COMPETE OBLIGATIONS DESIGNED TO CORRECT CAPITAL MARKET
IMPERFECTIONS 345
(5) USE OF NON-COMPETE OBLIGATIONS TO OBTAIN OTHER LOGISTICAL
EFFICIENCIES 346
(6) NON-COMPETE OBLIGATIONS COMBINED WITH EXCLUSIVE DISTRIBUTION . . 347
(7) NON-COMPETE OBLIGATIONS COMBINED WITH SELECTIVE DISTRIBUTION . . 348
(8) USE OF NON-COMPETE OBLIGATIONS IN INDUSTRIAL SUPPLY AGREEMENTS . 348
§3.48. SPECIFIC ISSUES RELATED TO TYING UNDER ARTICLE 81(3) 348
THE MOTOR VEHICLE BLOCK EXEMPTION 350
§3.49. INTRODUCTION 350
§3.50. APPLICABILITY OF THE MOTOR VEHICLE BLOCK EXEMPTION 351
(1) VERTICAL AGREEMENTS IN THE MOTOR VEHICLE SECTOR 351
(2) MARKET SHARE THRESHOLD 352
(3) INTELLECTUAL PROPERTY RIGHTS 353
(4) AGREEMENTS BETWEEN COMPETITORS 354
(5) AGREEMENTS CONCLUDED BY ASSOCIATIONS 354
§3.51. STRUCTURE OF THE MOTOR VEHICLE BLOCK EXEMPTION 355
§3.52. DE MINIMIS EXCEPTION 356
§3.53. CHOICE OF DISTRIBUTION SYSTEM 356
(1) EXCLUSIVE DISTRIBUTION 356
(2) SELECTIVE DISTRIBUTION 357
(3) CO-EXISTENCE OF EXCLUSIVE AND SELECTIVE DISTRIBUTION 361
§3.54. NON-COMPETE OBLIGATIONS 361
(1) MULTIBRANDING 362
(2) CONFUSION BETWEEN BRANDS 363
(3) REPAIR ACTIVITIES 364
(4) POST TERM NON-COMPETE OBLIGATIONS 364
(5) LEASING ACTIVITIES 365
§3.55. SALES AND PURCHASE TARGETS 365
TABLE OF CONTENTS
(1) SALES TARGETS 355
(2) PURCHASE TARGETS 366
§3.56. RESALE PRICE MAINTENANCE 367
§3.57. MARKET INTEGRATION 367
(1) CORRESPONDING MOTOR VEHICLES 369
(2) OBLIGATION TO PROVIDE REPAIR AND WARRANTY WORK 370
(3) SALES TO INTERMEDIARIES 371
§3.58, SERVICING AND REPAIRS WITHIN A VEHICLE MANUFACTURER S NETWORK 372
(1) BREAKING THE SALES-SERVICE LINK 372
(2) AUTHORIZED AFTER-SALES NETWORK 373
(3) SUBCONTRACTING OF SERVICE OBLIGATIONS 373
§3.59. THE SUPPLY OF SPARE PARTS 374
(1) PURCHASE RESTRICTIONS 375
(2) RIGHTS OF MANUFACTURERS OF ORIGINAL SPARE PARTS 376
(3) SPARE PARTS RESELLERS 377
§3.60. INDEPENDENT REPAIRERS 377
(1) TECHNICAL INFORMATION 377
(2) SUPPLY OF SPARE PARTS TO INDEPENDENT REPAIRERS 378
(3) ROUTINE MAINTENANCE 379
§3.61. GENERAL CONDITIONS ON CONTRACTUAL PROTECTION 379
(1) RIGHT OF ASSIGNMENT 379
(2) DURATION AND TERMINATION OF AGREEMENTS 380
(3) DISPUTE RESOLUTION 381
§3.62. WITHDRAWAL OF THE BENEFIT OF THE EXEMPTION 382
4. HORIZONTAL AGREEMENTS: CARTELS 385
INTRODUCTION 385
APPLICATION OF ARTICLE 81(1) TO CARTELS 386
RESTRICTION OF COMPETITION THROUGH CARTELS 388
§4.1. PRICING PRACTICES 388
(1) PRICE-FIXING AGREEMENTS 389
(2) PRICE DISCRIMINATION 399
(3) ANCILLARY AGREEMENTS 402
(4) PARALLEL PRICING BEHAVIOUR 404
(5) CARTELS AND ARTICLE 82 404
§4.2. MARKET-SHARING AGREEMENTS 406
(1) GEOGRAPHICAL MARKET-SHARING 407
(2) LIMITATION OF PRODUCTION OR SOURCES OF SUPPLY 413
(3) ALLOCATION OF CUSTOMERS AND/OR PRODUCTS 415
§4.3. COLLECTIVE BOYCOTTS
417
COMPETITION LAW OF THE EUROPEAN COMMUNITY
$4.4. EXCHANGE OF INFORMATION 420
(1) APPLICATION OF ARTICLE 81(1) 420
(2) MARKET STRUCTURE 422
(3) NATURE OF THE INFORMATION EXCHANGED 424
(4) EXCHANGE OF PRICE INFORMATION 428
(5) EXCHANGE OF INFORMATION ON PRODUCTION AND SALES 429
(6) EXCHANGE OF INFORMATION ON COSTS, INVESTMENTS AND CAPACITIES. . .
430
(7) EXCHANGE OF INFORMATION ON OR BETWEEN DISTRIBUTORS 431
(8) BUSINESS-TO-BUSINESS ELECTRONIC MARKETPLACES 431
(9) UK AGRICULTURAL TRACTOR REGISTRATION EXCHANGE 432
$4.5. TRADE ASSOCIATIONS, TRADE FAIRS AND EXHIBITIONS, EXCHANGES AND
AUCTIONS 434
(1) TRADE ASSOCIATIONS 434
(2) TRADE FAIRS AND EXHIBITIONS 443
(3) EXCHANGES 446
(4) AUCTIONS 448
STATE COMPULSION AS A DEFENCE FOR CARTEL ACTIVITY 449
EXEMPTION OF CARTELS IN CRISIS SITUATIONS 449
$4.6. INTRODUCTION 449
§4.7. ASSESSMENT OF CRISIS CARTELS 451
1I) SECTORAL RESTRUCTURING AGREEMENTS 454
(2) BILATERAL RESTRUCTURING AGREEMENTS 457
5. HORIZONTAL AGREEMENTS: COOPERATION AGREEMENTS . . 463
INTRODUCTION 463
§5.1. OVERVIEW 463
DEFINITION OF HORIZONTAL COOPERATION AGREEMENTS
AND THE SCOPE OF THIS CHAPTER 464
$5.2. SCOPE OF THE HORIZONTAL GUIDELINES 464
$5.3. DEFINITION OF HORIZONTAL COOPERATION AGREEMENTS 465
$5.4. THE STANDARD OF LEGALITY: ARTICLE 81 OR THE MERGER REGULATION 466
GENERAL OVERVIEW OF THE APPLICATION OF ARTICLE 81 AND
THE HORIZONTAL GUIDELINES TO HORIZONTAL COOPERATION
AGREEMENTS 466
$5.5. OVERVIEW 466
$5.6. APPLICATION OF ARTICLE 81(1) TO HORIZONTAL COOPERATION AGREEMENTS.
. . 467
(1) APPRECIABLE RESTRICTION OF COMPETITION 467
(2) LIKELY TO AFFECT TRADE BETWEEN THE MEMBER STATES 479
$5.7. EXEMPTION: APPLICATION OF ARTICLE 81(3) TO HORIZONTAL COOPERATION
AGREEMENTS 479
TABLE OF CONTENTS
(1) ECONOMIC BENEFITS 480
(2) FAIR SHARE FOR CONSUMERS 481
(3) INDISPENSABILITY 482
(4) NO ELIMINATION OF COMPETITION 483
INTRODUCTION TO THE REMAINDER OF THIS CHAPTER 484
§5.8. SCOPE 484
§5.9. LOCATING THE APPLICABLE SECTION OF THIS CHAPTER 485
§5.10. CENTRE OF GRAVITY TEST 485
§5.11. RULES APPLICABLE TO STRATEGIC ALLIANCES 486
RESEARCH AND DEVELOPMENT AGREEMENTS 487
§5.12. INTRODUCTION 487
§5.13. ARTICLE 81(1) 487
(1) AGREEMENTS THAT GENERALLY DO NOT CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 488
(2) AGREEMENTS THAT ALMOST ALWAYS CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 490
(3) FACTORS USED TO DETERMINE WHETHER R&D AGREEMENTS
CONSTITUTE A RESTRICTION OR DISTORTION OF COMPETITION UNDER
ARTICLE 81(1) 491
(4) CONCLUSION 494
§5.14. R&D AGREEMENTS BLOCK EXEMPTION 494
(1) PREREQUISITES FOR THE GRANT OF THE EXEMPTION 494
(2) THRESHOLD CONDITIONS FOR EXEMPTION 496
(3) MARKET SHARE THRESHOLD AND DURATION OF EXEMPTION 498
(4) HARDCORE RESTRICTIONS 501
(5) SCOPE OF THE EXEMPTION - ANCILLARY RESTRICTIONS COVERED 505
(6) WITHDRAWAL OF THE EXEMPTION 505
§5.15. ARTICLE 81(3) 506
(1) CREATION OF BENEFITS THAT ARE PASSED ON TO CONSUMERS 506
(2) INDISPENSABILITY 507
(3) NO ELIMINATION OF COMPETITION 508
(4) TIME OF THE ASSESSMENT AND DURATION OF THE INDIVIDUAL EXEMPTION 509
JOINT PRODUCTION/SPECIALIZATION AGREEMENTS 509
§5.16. INTRODUCTION
5
^
§5.17. APPLICABLE RULES FOR SUBCONTRACTING AGREEMENTS 510
§5.18. ARTICLE 81(1)
51
*
(1) AGREEMENTS THAT GENERALLY DO NOT CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 512
(2) AGREEMENTS THAT ALMOST ALWAYS CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 514
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(3) FACTORS USED TO DETERMINE WHETHER JOINT PRODUCTION
AGREEMENTS CONSTITUTE A RESTRICTION OR DISTORTION OF COMPETITION
UNDER ARTICLE 81(1) 514
(4) CONCLUSION 517
§5.19. SPECIALIZATION AGREEMENTS BLOCK EXEMPTION 517
(1) PREREQUISITES FOR THE GRANT OF THE EXEMPTION 518
(2) MARKET SHARE THRESHOLD AND DURATION OF EXEMPTION 519
(3) HARDCORE RESTRICTIONS 520
(4) SCOPE OF THE EXEMPTION - ANCILLARY RESTRICTIONS COVERED 521
(5) WITHDRAWAL OF THE EXEMPTION 521
§5.20. ARTICLE 81(3) 522
(1) CREATION OF BENEFITS THAT ARE PASSED ON TO CONSUMERS 522
(2) INDISPENSABILITY 523
(3) NO ELIMINATION OF COMPETITION 524
PURCHASING AGREEMENTS 524
§5.21. INTRODUCTION 524
(1) DEFINITION AND SCOPE 524
(2) RELEVANT MARKETS 525
§5.22. ARTICLE 81(1) 525
(1) ASSESSMENT UNDER THE HORIZONTAL GUIDELINES 525
(2) ASSESSMENT UNDER THE DE MINIMIS NOTICE 532
§5.23. ARTICLE 81(3) 532
(1) CREATION OF BENEFITS THAT ARE PASSED ON TO CONSUMERS 533
(2) INDISPENSABILITY 533
(3) NO ELIMINATION OF COMPETITION 535
COMMERCIALIZATION AGREEMENTS 536
§5.24. INTRODUCTION AND SCOPE 536
(1) RELATIONSHIP BETWEEN THE HORIZONTAL GUIDELINES AND THE
VERTICAL AGREEMENTS BLOCK EXEMPTION AND VERTICAL
GUIDELINES 536
(2) CENTRE OF GRAVITY TEST 537
(3) RELEVANT MARKETS TO BE ASSESSED 537
§5.25. ARTICLE 81(1) 538
(1) ASSESSMENT UNDER THE HORIZONTAL GUIDELINES 538
(2) ASSESSMENT UNDER THE DE MINIMIS NOTICE 543
§5.26. ARTICLE 81(3) 544
(1) CREATION OF BENEFITS THAT ARE PASSED ON TO CONSUMERS 544
(2) INDISPENSABILITY 546
(3) NO ELIMINATION OF COMPETITION 546
§5.27. SPECIFIC TYPES OF COMMERCIALIZATION AGREEMENTS 546
TABLE OF CONTENTS
(1) AGREEMENTS INVOLVING THE APPOINTMENT OF COMPETITORS AS
DISTRIBUTORS 545
(2) AGREEMENTS INVOLVING THE CREATION OF A JOINT DISTRIBUTION
COMPANY WITHOUT INVOLVING THE JOINT FIXING OF PRICES 549
(3) AGREEMENTS INVOLVING THE JOINT FIXING OF PRICES 551
(4) AGREEMENTS INVOLVING COMMON BRANDING AND/OR JOINT
ADVERTISING 553
STANDARDIZATION AGREEMENTS 554
§5.28. INTRODUCTION 554
(1) DEFINITION 554
(2) RELEVANT MARKETS 556
§5.29. ARTICLE 81(1) 556
(1) AGREEMENTS THAT GENERALLY DO NOT CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 557
(2) AGREEMENTS THAT ALMOST ALWAYS CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 558
(3) AGREEMENTS THAT MAY CONSTITUTE A RESTRICTION OR DISTORTION OF
COMPETITION UNDER ARTICLE 81(1) 559
§5.30. ARTICLE 81(3) 561
(1) CREATION OF BENEFITS THAT ARE PASSED ON TO CONSUMERS 562
(2) INDISPENSABILITY 564
(3) NO ELIMINATION OF COMPETITION 565
ENVIRONMENTAL AGREEMENTS 566
§5.31. INTRODUCTION 566
(1) DEFINITION 566
(2) RELEVANT MARKETS 567
§5.32. ARTICLE 81(1) 568
(1) AGREEMENTS THAT GENERALLY DO NOT CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 569
(2) AGREEMENTS THAT ALMOST ALWAYS CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 574
(3) AGREEMENTS THAT MAY CONSTITUTE A RESTRICTION OR DISTORTION OF
COMPETITION UNDER ARTICLE 81(1) 577
§5.33. ARTICLE 81(3)
578
(1) CREATION OF BENEFITS THAT ARE PASSED ON TO CONSUMERS 579
(2) INDISPENSABILITY
58
(3) NO ELIMINATION OF COMPETITION 581
6. INTELLECTUAL PROPERTY 583
INTRODUCTION
583
COMPETITION LAW OF THE EUROPEAN COMMUNITY
RESTRICTIONS ON ENFORCEMENT OF INDUSTRIAL AND
COMMERCIAL PROPERTY RIGHTS 585
§6.1. INTRODUCTION 585
§6.2. ARTICLES 81 AND 82 AS A DEFENCE AGAINST THE ENFORCEMENT OF
INDUSTRIAL AND INTELLECTUAL PROPERTY RIGHTS 585
§6.3. THE EXHAUSTION PRINCIPLE 589
§6.4. TRADE WITHIN THE EUROPEAN ECONOMIC AREA 590
(1) GENERAL PRINCIPLES 591
(2) COPYRIGHT: MECHANICAL RIGHTS 592
(3) COPYRIGHT: PERFORMING RIGHTS 593
(4) COPYRIGHT: RENTAL RIGHTS 594
(5) COPYRIGHT: SUPPLEMENTARY ROYALTIES 595
(6) COPYRIGHT: COMPUTER PROGRAMMES 595
(7) TRADE MARKS: EXHAUSTION AND THE TRADEMARK DIRECTIVE 596
(8) TRADE MARKS: REPACKAGING AND PARALLEL TRADE OF TRADE MARKED
GOODS 598
(9) TRADE MARKS: REMOVING LABELS FROM TRADE MARKED GOODS 601
(10) TRADE MARKS: THE COMMON OWNERSHIP DOCTRINE AND
ASSIGNMENT OF RIGHTS 602
(11) PATENTS: EXHAUSTION BY LICENCE 605
(12) PATENTS: EXHAUSTION DESPITE LACK OF PROTECTION IN MEMBER
STATE OF EXPORT 605
(13) PATENTS: COMPULSORY LICENCE IN MEMBER STATE OF EXPORT 607
(14) GEOGRAPHIC SCOPE OF THE EXHAUSTION PRINCIPLE 607
(15) NATIONAL LEGISLATION CONTRARY TO ARTICLE 30 609
§6.5. IMPORTS OF PHARMACEUTICAL PRODUCTS FROM COUNTRIES THAT ACCEDED TO
THE EU ON 1 MAY 2004 611
(1) EXCEPTION TO THE EXHAUSTION RULE FOR CERTAIN PHARMACEUTICAL
PRODUCTS IMPORTED FROM ACCEDING COUNTRIES: THE SPECIFIC
MECHANISM 611
(2) ONE-MONTH NOTICE REQUIREMENT FOR PARALLEL IMPORTERS 611
§6.6. IMPORTS FROM NON-EEA COUNTRIES 612
(1) TRADE MARKED GOODS: NO INTERNATIONAL EXHAUSTION OF RIGHTS 612
(2) OTHER FORMS OF INTELLECTUAL PROPERTY: RULE ON INTERNATIONAL
EXHAUSTION DEPENDS ON WHETHER THE COMMUNITY HAS ADOPTED
HARMONIZING MEASURES 619
TECHNOLOGY TRANSFER 619
§6.7. REGULATION OF PATENT, KNOW-HOW, AND SOFTWARE COPYRIGHT LICENCES .
. . 619
§6.8. CATEGORIES OF LICENSING AGREEMENTS 621
TABLE OF CONTENTS
(1) AGREEMENTS FALLING OUTSIDE ARTICLE 81(1), INCLUDING DE MINIMIS
AGREEMENTS 5?2
(2) AGREEMENTS BENEFITING FROM THE TRANSITIONAL PERIOD UNTIL
31 MARCH 2006 623
(3) AGREEMENTS EXEMPTED BY THE CURRENT TECHNOLOGY TRANSFER
BLOCK EXEMPTION 623
(4) AGREEMENTS ELIGIBLE FOR AN INDIVIDUAL EXEMPTION UNDER
ARTICLE 81(3) 623
(5) AGREEMENTS FALLING WITHIN ARTICLE 81(1) THAT DO NOT QUALIFY
FOR AN EXEMPTION 624
§6.9. APPLICATION OF ARTICLE 82 624
§6.10. RELATIONSHIP BETWEEN THE TECHNOLOGY TRANSFER BLOCK EXEMPTION
AND OTHER BLOCK EXEMPTIONS 625
(1) THE TECHNOLOGY TRANSFER BLOCK EXEMPTION AND THE VERTICAL
AGREEMENTS BLOCK EXEMPTION 625
(2) THE TECHNOLOGY TRANSFER BLOCK EEXEMPTION AND THE
SPECIALIZATION AND R&D AGREEMENTS BLOCK EXEMPTIONS 626
§6.11. SCOPE OF THE FORMER TECHNOLOGY TRANSFER BLOCK EXEMPTION:
TYPES OF AGREEMENTS COVERED 627
(1) THRESHOLD REQUIREMENTS 627
(2) AGREEMENTS SPECIFICALLY EXCLUDED FROM THE FORMER TECHNOLOGY
TRANSFER BLOCK EXEMPTION 628
§6.12. TREATMENT UNDER THE FORMER TECHNOLOGY TRANSFER BLOCK EXEMPTION
OF TYPICAL RESTRICTIONS FOUND IN PATENT AND KNOW-HOW LICENCES 629
§6.13. EXCLUSIVITY 630
§6.14. RESTRICTIONS ON LICENSEES ACTIVITIES OUTSIDE THE LICENSED
TERRITORY 631
(1) OBLIGATION ON LICENSEE NOT TO EXPLOIT THE TECHNOLOGY IN
LICENSOR S TERRITORY 631
(2) OBLIGATION NOT TO USE OR MAKE THE LICENSED PRODUCT IN OTHER
LICENSEES TERRITORIES 631
(3) BANS ON ACTIVE SALES BY LICENSEES IN OTHER LICENSEES TERRITORIES
... 632
(4) RESTRICTIONS LIMITING PASSIVE SALES BY LICENSEES IN OTHER
LICENSEES TERRITORIES AND LIMITING PARALLEL IMPORTS 633
§6.15. USE OF TRADE MARK AND GET-UP 633
§6.16. TYING AND MINIMUM QUALITY OBLIGATIONS 634
§6.17. FIELD OF USE RESTRICTIONS 635
(1) FIELD OF USE RESTRICTIONS UNDER THE OLD TECHNOLOGY TRANSFER
BLOCK EXEMPTION 635
(2) THE MEANING OF TECHNICAL FIELD OF APPLICATION 636
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(3) NO EXEMPTION FOR MARKET SHARING ARRANGEMENTS BETWEEN
COMPETITORS 637
$6.18. NO-CHALLENGE CLAUSES AND RESERVATIONS TO TERMINATE 638
(1) NO-CHALLENGE CLAUSES 638
(2) RESERVATIONS TO TERMINATE 639
§6.19. GRANTBACKS AND ASSIGNMENTS OF IMPROVEMENTS 640
(1) GRANTBACKS 640
(2) ASSIGNMENTS OF IMPROVEMENTS 641
§6.20. NON-COMPETE OBLIGATIONS 641
(1) STANDARD NON-COMPETE OBLIGATIONS 641
(2) BEST ENDEAVOURS CLAUSES 641
(3) RESERVATIONS TO TERMINATE IN CASE OF COMPETITION 642
(4) MINIMUM ROYALTIES OR OUTPUT AS A FORM OF NON-COMPETE 642
§6.21. PROHIBITIONS AGAINST SUB-LICENSING 643
§6.22. PRICE RESTRICTIONS 643
§6.23. CUSTOMER RESTRICTIONS 644
§6.24. MINIMUM AND MAXIMUM OUTPUT RESTRICTIONS 645
(1) MINIMUM OUTPUT RESTRICTIONS 645
(2) MAXIMUM OUTPUT RESTRICTIONS 645
§6.25. ROYALTY OBLIGATIONS 646
(1) MINIMUM ROYALTIES 646
(2) ROYALTIES ON PRODUCTS NOT COVERED BY THE LICENSED TECHNOLOGY
AND ROYALTIES ON COMPLEX PRODUCTS INCORPORATING THE LICENSED
TECHNOLOGY AS AN INPUT 646
(3) ROYALTIES PAID AFTER THE LICENSED TECHNOLOGY FALLS INTO THE PUBLIC
DOMAIN 647
§6.26. POST-TERM USE RESTRICTIONS 648
§6.27. OBLIGATIONS TO PRESERVE THE SECRECY OF THE KNOW-HOW 648
§6.28. DURATION AND AUTOMATIC PROLONGATION 649
§6.29. OTHER CLAUSES 649
(1) PROSECUTING CLAIMS (OR ASSISTING THE LICENSOR IN PROSECUTING
CLAIMS) OF MISAPPROPRIATION OR INFRINGEMENT 649
(2) MINIMUM QUALITY SPECIFICATIONS 650
(3) MOST FAVOURED LICENSEE CLAUSES 651
§6.30. CLAUSES WHICH MAY REQUIRE INDIVIDUAL EXEMPTION UNDER ARTICLE
81(3) . 651
(1) AGREEMENTS BETWEEN MEMBERS OF A TECHNOLOGY POOL 651
(2) AGREEMENTS BETWEEN COMPETING UNDERTAKINGS HOLDING
INTERESTS IN A JOINT VENTURE OR BETWEEN ONE OF THEM AND THE
JOINT VENTURE 654
(3) AGREEMENTS INVOLVING CROSS-LICENCES 656
TABLE OF CONTENTS
(4) AGREEMENTS CONTAINING ANCILLARY PROVISIONS RELATING TO
INTELLECTUAL PROPERTY RIGHTS OTHER THAN PATENTS 657
(5) AGREEMENTS ENTERED INTO SOLELY FOR THE PURPOSE OF SALE 659
§6.31. THE TECHNOLOGY TRANSFER BLOCK EXEMPTION: THE CURRENT TECHNOLOGY
TRANSFER REGIME 559
(1) TRANSITIONAL PERIODS: AGREEMENTS THAT WERE COVERED UNDER THE
FORMER TECHNOLOGY TRANSFER BLOCK EXEMPTION AND AGREEMENTS
REQUIRING AN EXEMPTION BY REASON OF THE ENLARGEMENT OF THE EU . 660
(2) UNDERLYING ASSUMPTIONS AND PRINCIPAL FEATURES OF THE
TECHNOLOGY TRANSFER BLOCK EXEMPTION 661
(3) SCOPE OF THE BLOCK EXEMPTION 662
(4) THE NEW MARKET SHARE THRESHOLDS 666
(5) DYNAMIC MARKETS WHERE MARKET SHARES ARE NOT GOOD
INDICATORS OF MARKET POWER 669
(6) HARDCORE RESTRICTIONS 669
(7) EXCLUDED RESTRICTIONS 675
(8) WITHDRAWAL AND NON-APPLICATION OF THE BLOCK EXEMPTION 677
§6.32. TREATMENT OF SPECIFIC LICENSING PROVISIONS UNDER THE TECHNOLOGY
TRANSFER GUIDELINES 678
(1) ROYALTY OBLIGATIONS 678
(2) EXCLUSIVE AND SOLE LICENSING 681
(3) TERRITORIAL AND CUSTOMER RESTRICTIONS 683
(4) OUTPUT RESTRICTIONS 685
(5) FIELD OF USE RESTRICTIONS 687
(6) CAPTIVE USE RESTRICTIONS 691
(7) TYING OBLIGATIONS 692
(8) NON-COMPETE OBLIGATIONS 694
(9) EXCLUSIVE GRANTBACKS OF SEVERABLE IMPROVEMENTS AND NEW
APPLICATIONS 696
§6.33. SETTLEMENT AND NON-ASSERTION AGREEMENTS 696
(1) GENERAL PRINCIPLES 696
(2) APPLICATION OF THE TECHNOLOGY TRANSFER BLOCK EXEMPTION TO
SETTLEMENT AND NON-ASSERTION AGREEMENTS 697
(3) COMPETITIVE ANALYSIS OF SETTLEMENT AND NON-ASSERTION
/-GO
AGREEMENTS
(4) AGREEMENTS CONCERNING FUTURE DEVELOPMENTS 698
(5) NO-CHALLENGE OBLIGATIONS IN SETTLEMENT AND NON-ASSERTION
699
AGREEMENTS
§6.34. TECHNOLOGY POOLS
6
(1) GENERAL PRINCIPLES
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(2) COMPLEMENTARY VERSUS SUBSTITUTE TECHNOLOGIES COMPRISED IN
THE POOL 700
(3) ESSENTIAL VERSUS NON-ESSENTIAL TECHNOLOGIES COMPRISED IN THE POOL
701
(4) ASSESSMENT OF INDIVIDUAL RESTRAINTS RELATED TO THE POOL 703
(5) POOL MANAGEMENT AND INSTITUTIONAL ARRANGEMENTS 704
LICENCES OF INDUSTRIAL OR COMMERCIAL PROPERTY RIGHTS
OTHER THAN PATENTS, KNOW-HOW, AND ANCILLARY
LICENCES 705
§6.35. INTRODUCTION 705
§6.36. TRADE MARK LICENCES 705
(1) GENERAL REMARKS REGARDING TERRITORIAL RESTRAINTS 706
(2) THE CAMPARI CASE 707
(3) THE MOOSEHEAD-WHITBREAD CASE 708
(4) TRADE MARKS UNDER THE TECHNOLOGY TRANSFER BLOCK EXEMPTION. . 709
(5) COUNCIL DIRECTIVE 89/104 ON THE APPROXIMATION OF THE LAWS
OF THE MEMBER STATES RELATING TO TRADE MARKS 709
(6) COUNCIL REGULATION 40/94 ON THE COMMUNITY TRADE MARK 710
§6.37. COPYRIGHT LICENCES 710
(1) EXCLUSIVE COPYRIGHT LICENCES 711
(2) FIELD OF USE RESTRICTIONS IN COPYRIGHT LICENCES 712
(3) OTHER TYPICAL RESTRICTIVE CLAUSES IN COPYRIGHT LICENSING AGREEMENTS
714
(4) COPYRIGHT COLLECTING SOCIETIES 717
(5) ONE-STOP, MULTI-TERRITORIAL COPYRIGHT LICENCES FOR SIMULCASTING
OVER THE INTERNET 718
(6) COUNCIL DIRECTIVE 91/250 ON THE LEGAL PROTECTION OF COMPUTER
PROGRAMS 719
§6.38. SOFTWARE LICENSING 719
§6.39. LICENCES OF PLANT BREEDERS RIGHTS 721
TRADE MARK DELIMITATION AGREEMENTS 723
§6.40. INTRODUCTION 723
§6.41. AGREEMENTS NOT TO USE TRADE MARKS IN CERTAIN MEMBER STATES 724
§6.42. UNHAMPERED MOVEMENT OF GOODS BEARING THE TRADE MARK 726
7. CONTROL OF MERGERS, ACQUISITIONS AND CERTAIN
JOINT VENTURES 729
INTRODUCTION 729
§7.1. OVERVIEW 729
(1) THE GENESIS OF THE EC MERGER REGULATION 730
(2) THE 1997 AMENDMENTS 732
(3) THE 2002 2003 MERGER REVIEW 732
TABLE OF CONTENTS
§7.2. THE 2004 MERGER REGULATION 733
(1) A NEW SUBSTANTIVE TEST 733
(2) ALLOCATING JURISDICTION 735
(3) MORE FLEXIBILITY IN THE TIMING OF NOTIFICATIONS 736
(4) STOPPING THE CLOCK 736
(5) THE COMMISSION S FACT-FINDING AND FINING POWERS 737
§7.3. NON-LEGISLATIVE MEASURES INTENDED TO IMPROVE COMMISSION PRACTICE.
. 738
(1) PEER REVIEW PANEL 738
(2) EARLIER ACCESS TO THE FILE 738
(3) OPPORTUNITIES TO MEET WITH COMPLAINING THIRD PARTIES 739
(4) STATE OF PLAY MEETINGS 739
(5) ADDITION OF NEW PERSONNEL 739
§7.4. NEW GUIDELINES ON HORIZONTAL MERGERS 740
(1) RELIANCE ON MARKET SHARES AND CONCENTRATION LEVELS 740
(2) CLARIFICATION OF COORDINATED EFFECTS 742
(3) INTRODUCTION OF UNILATERAL EFFECTS 743
(4) EFFICIENCIES AND OTHER COUNTERVAILING FACTORS 745
JURISDICTION OF THE COMMISSION TO REVIEW MERGERS 746
§7.5. OVERVIEW: CONCENTRATIONS WITH COMMUNITY DIMENSION 746
(1) THE CONCEPT OF A CONCENTRATION 746
(2) COMMUNITY DIMENSION 752
(3) STATISTICS 755
§7.6. CONCENTRATIONS FALLING OUTSIDE THE THRESHOLDS 755
§7.7. EXCEPTIONS TO THE ONE-STOP SHOP PRINCIPLE 756
(1) PROTECTION OF LEGITIMATE INTERESTS 756
(2) REFERRALS FROM THE COMMISSION TO ONE OR MORE MEMBER STATES . 756
(3) REFERRALS FROM THREE OR MORE MEMBER STATES TO THE COMMISSION 758
(4) REFERRALS BY A MEMBER STATE TO THE COMMISSION 758
§7.8. IDENTIFYING THE ENTITIES WHOSE TURNOVER MUST BE CONSIDERED IN
ASSESSING COMMUNITY DIMENSION 759
(1) IDENTIFYING THE UNDERTAKINGS CONCERNED - OVERVIEW 760
(2) UNDERTAKINGS CONCERNED IN THE CASE OF MERGERS 761
(3) UNDERTAKINGS CONCERNED IN THE CASE OF ACQUISITIONS OF SOLE
CONTROL
761
(4) UNDERTAKINGS CONCERNED IN THE CASE OF ACQUISITIONS OF JOINT
CONTROL
762
(5) UNDERTAKINGS CONCERNED IN THE CASE OF ACQUISITIONS OF CONTROL BY
A JOINT VENTURE
(6) UNDERTAKINGS CONCERNED IN THE CASE OF CHANGES FROM JOINT TO
SOLE CONTROL
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(7) UNDERTAKINGS CONCERNED IN THE CASE OF DE-MERGERS (BREAK
UP OF COMPANIES) 764
(8) UNDERTAKINGS CONCERNED IN THE CASE OF EXCHANGE OF ASSETS ( ASSET
SWAPS ) AND IN THE CONTEXT OF OUTSOURCING AGREEMENTS 764
§7.9. THE DEFINITION OF TURNOVER 765
(1) BASICS OF CALCULATING TURNOVER 765
(2) NET TURNOVER 766
(3) GROUP TURNOVER 766
(4) DEDUCTION OF INTERNAL TURNOVER 769
§7.10. GEOGRAPHICAL ALLOCATION OF TURNOVER 769
§7.11. SPECIAL RULES FOR FINANCIAL INSTITUTIONS AND INSURANCE
UNDERTAKINGS . . . 772
(1) CREDIT AND OTHER FINANCIAL INSTITUTIONS 772
(2) INSURANCE UNDERTAKINGS 773
(3) MIXED GROUPS 774
§7.12. CALCULATING TURNOVER IN THE CASE OF ACQUISITION OF ASSETS WITHOUT
SALES 774
§7.13. EXTRATERRITORIAL APPLICATION OF THE MERGER REGULATION 775
(1) THE RULE 775
(2) CASE LAW 775
SUBSTANTIVE REVIEW BY THE COMMISSION 777
§7.14. SECTOR-SPECIFIC ORGANIZATION OF MERGER CONTROL 778
§7.15. INVESTIGATIVE POWERS 779
§7.16. DEFINING THE RELEVANT MARKETS 779
(1) RELEVANT MARKET DEFINITION 780
(2) DEFINING RELEVANT MARKETS IN PRACTICE 795
§7.17. TEST OF COMPATIBILITY WITH THE COMMON MARKET: SIGNIFICANT
IMPEDIMENT OF EFFECTIVE COMPETITION, IN PARTICULAR AS A RESULT OF THE
CREATION OR STRENGTHENING OF A DOMINANT POSITION 795
(1) CREATION OR STRENGTHENING OF A DOMINANT POSITION 797
(2) FACTORS CONSIDERED IN ASSESSING DOMINANCE IN HORIZONTAL MERGERS 797
§7.18. VERTICAL MERGERS 813
(1) INTRODUCTION 813
(2) ENTRY BARRIERS AND FORECLOSURE 813
(3) OTHER EXAMPLES 815
§7 19. CONGLOMERATE MERGERS AND PORTFOLIO POWER 818
§7 20. COLLECTIVE DOMINANCE/COORDINATED EFFECTS 819
(1) NESTLE: PERRIER 819
(2) KALI UND SAL: 821
(3) GENCOR-LONRHO 822
(4) ENSO STORA 823
XXVILL
TABLE OF CONTENTS
(5) AIRTOURS
(6) UPM-KYMMENEJMORGAN ADHESIVES . 825
(7) ANALYSIS - KEY FACTORS CONSIDERED BY THE COMMISSION IN
ASSESSING THE RISK OF COLLECTIVE DOMINANCE 826
§7.21. ARTICLE 2(4) AND 2(5): COORDINATIVE EFFECTS OF FULL-FUNCTION
JOINT
VENTURES ^3 J
(1) OVERVIEW G3L
(2) CASES WHERE ARTICLE 2(4) AND 2(5) APPLY ... 832
(3) SUBSTANTIVE ASSESSMENT UNDER ARTICLE 2(4) AND 2(5) 833
§7.22. ANCILLARY RESTRAINTS 837
(1) INTRODUCTION 837
(2) REQUIREMENTS FOR RESTRICTIONS TO BE CONSIDERED ANCILLARY 838
(3) COMMON TYPES OF ANCILLARY RESTRAINTS AS ADDRESSED IN THE 2001
NOTICE ON ANCILLARY RESTRAINTS 841
THE PROCESS OF NOTIFYING A CONCENTRATION TO THE
COMMISSION 849
§7.23. FORMALITIES 849
§7.24. TIMING 850
§7.25. COMPLETING FORM CO 851
(1) OVERVIEW 851
(2) INFORMATION THAT MUST BE PROVIDED IN FORM CO 851
(3) COPIES THAT MUST BE PROVIDED 853
(4) CORRECT AND COMPLETE INFORMATION 853
§7.26. SIMPLIFIED PROCEDURE 853
§7.27. PRE-NOTIFICATION CONSULTATIONS 855
§7.28. SUSPENSION REQUIREMENT 855
(1) SUSPENSION PERIOD 855
(2) WAIVER OF SUSPENSION REQUIREMENT 856
(3) CONSEQUENCES OF CONTRAVENING THE SUSPENSION REQUIREMENT 856
(4) CONSEQUENCES OF FAILING TO NOTIFY AND PROVIDING INCORRECT/
MISLEADING INFORMATION 857
PROCEDURE FOR REVIEW OF CONCENTRATIONS AND
APPLICABLE DEADLINES 857
§7.29. FIRST PHASE TIMETABLE 857
(1) TYPES OF FIRST PHASE DECISIONS 857
(2) PUBLICATION OF NOTICE OF PRIOR NOTIFICATION 858
(3) COMMUNICATION WITH MEMBER STATES IN THE FIRST PHASE 859
(4) NO LONGER A POSSIBILITY OF CONVERSION OF NOTIFICATION . . *
859
(5) VERIFICATION, REQUESTS FOR INFORMATION AND INVESTIGATION IN
THE FIRST PHASE
860
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(6) RIGHT TO BE HEARD IN THE FIRST PHASE 863
(7) INTER-SERVICE MEETINGS IN THE FIRST PHASE 863
(8) MODIFICATION OF THE OPERATION, CONDITIONS AND OBLIGATIONS IN
THE FIRST PHASE 864
(9) DEADLINE FOR REFERRAL TO MEMBER STATES 865
(10) PUBLICATION OF PHASE I DECISIONS 865
(11) REVOCATION OF PHASE I DECISIONS 865
§7.30. SECOND PHASE TIMETABLE 866
(1) REQUESTS FOR INFORMATION AND INVESTIGATIONS 866
(2) SUSPENSION OF 90-DAY TIME LIMIT 867
(3) STATEMENT OF OBJECTIONS 867
(4) ACCESS TO FILE 868
(5) RIGHT OF REPLY TO STATEMENT OF OBJECTIONS 870
(6) ORAL HEARING 871
(7) COMMITMENTS AND UNDERTAKINGS 873
(8) DRAFT DECISION 873
(9) CONSULTATION WITH ADVISORY COMMITTEE 874
(10) DECISIONS ENDING A PHASE II INVESTIGATION 874
(11) PUBLICATION OF PHASE II DECISIONS 875
(12) REVOCATION OF PHASE II DECISIONS 876
§7.31. REFERRALS BETWEEN THE COMMISSION AND THE MEMBER STATES 876
§7.32. COOPERATION BETWEEN THE COMMISSION AND THE MEMBER STATES 876
(1) REQUIREMENT OF COOPERATION UNDER THE MERGER REGULATION 876
(2) REQUESTS FOR INFORMATION AND INVESTIGATIONS 877
(3) ADVISORY COMMITTEE ON CONCENTRATIONS 877
(4) IMPORTANCE OF COOPERATION 878
§7.33. INTERNATIONAL COOPERATION 878
(1) GENERAL INTRODUCTION 878
(2) EU-US COOPERATION 879
(3) EU COOPERATION WITH OTHER COUNTRIES 882
§7.34. REMEDIES 884
(1) STRUCTURAL V. BEHAVIOURAL COMMITMENTS 885
(2) TIMETABLE FOR COMMITMENTS 890
(3) ENFORCEABILITY OF COMMITMENTS 891
JUDICIAL REVIEW OF MERGER DECISIONS 892
§7.35. INTERIM RELIEF 893
(1) PRIMA FACIE CASE
(2) URGENCY
(3) BALANCE OF INTERESTS 895
§7.36. ACTS SUBJECT TO REVIEW 896
TABLE OF CONTENTS
§7.37. STANDING OF MERGING PARTIES 898
§7.38. STANDING OF THIRD PARTIES 898
(1) DIRECT CONCERN 899
(2) INDIVIDUAL CONCERN 900
§7.39. GROUNDS FOR REVIEW 901
§7.40. THE COURT S ACCELERATED PROCEDURE 901
8. ABUSE OF A DOMINANT POSITION 903
INTRODUCTION 903
THE CONCEPT OF ABUSE 903
§8.1. EXPLOITATIVE ABUSES AND EXCLUSIONARY ABUSES 904
§8.2. THE OBJECT OR EFFECT OF THE BEHAVIOUR AT ISSUE 905
§8.3. THE SPECIAL RESPONSIBILITY OF DOMINANT FIRMS 905
§8.4. THE REQUIRED DEGREE OF LINKAGE BETWEEN THE DOMINATED MARKET
AND THE MARKET ON WHICH THE ABUSE OCCURS 906
§8.5. THE REQUIRED DEGREE OF LINKAGE BETWEEN THE DOMINANT UNDERTAKING
AND THE UNDERTAKING WHICH COMMITS THE ABUSE 906
§8.6. OBJECTIVE JUSTIFICATION 907
ABUSIVE PRACTICES 908
§8.7. PRICING PRACTICES 909
(1) CHARGING EXCESSIVE PRICES 909
(2) EXTRACTING EXCESSIVELY LOW PURCHASE PRICES 914
(3) PRICE DISCRIMINATION 914
(4) REBATE SCHEMES 922
(5) PREDATORY PRICING 934
§8.8. REFUSALS TO DEAL 940
(1) INTRODUCTION 940
(2) REFUSAL TO SUPPLY A COMPETITOR 941
(3) REFUSAL TO SUPPLY A NON-COMPETING CUSTOMER: UNITED BRANDS. . . . 947
(4) REFUSAL TO LICENSE 947
(5) ESSENTIAL FACILITIES 954
(6) JUSTIFICATIONS FOR REFUSALS TO DEAL 956
(7) REFUSAL TO PURCHASE 958
§8.9. DISCRIMINATION 959
(1) DISCRIMINATING BETWEEN NATIONALS OR RESIDENTS OF DIFFERENT
MEMBER STATES 959
(2) OTHER FORMS OF DISCRIMINATION 960
§8.10. TYING 962
(1) TYING MACHINES AND CONSUMABLES 963
(2) BUNDLING DIFFERENT PRODUCTS AND/OR SERVICES 967
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(3) OTHER METHODS OF TYING 968
S N.L 1. UNFAIR TERMS AND CONDITIONS 969
(1) TETRA PAK 11 969
(2) COPYRIGHT MANAGEMENT SOCIETIES REQUIRING ASSIGNMENT OF
COPYRIGHT 970
(3) UNILATERAL PRICE-SETTING AND LEASE EXTENSIONS 971
(4) UNFAIR PRICING 971
$ N. 12. MISCELLANEOUS ABUSES 972
(1) EXCLUSIVE DEALING OBLIGATIONS 972
(2) ABUSIVE REGISTRATION OF TRADE MARKS 973
(3) RESTRICTIONS ON RESALES 974
(4) ABUSIVE LICENSING PRACTICES 974
(5) LIMITING MARKETS AND TECHNICAL DEVELOPMENT 976
(6) MARKET-SHARING AGREEMENTS 977
L
. SPATE INVOLVEMENT IN COMPETITION 979
INTRODUCTION . . . .. . 979
STATE MEASURES THAT MAY RENDER INEFFECTIVE
COMPETITION LAW APPLICABLE TO ENTERPRISES 980
$
9
-L- RELEVANT TREATY PROVISIONS: ARTICLES 10, 3(L)(G), 81 AND 82 980
$9.2. THE I AN EYCKE CASE LAW .... 981
(1) INNO 981
(2) I AN EYCKE .... 982
(3) OTHER CASES APPLYING THE INNO AND VAN EYCKE PRINCIPLES 983
(41 SUMMARY OF THE VAN EYCKE PRINCIPLES OF STATE LIABILITY 987
(?) THE LIMITS OF A MEMBER STATE S OBLIGATION 987
U ) DIRECT EFFECT 990
^*ATI! MEASURES IN RELATION TO PUBLIC UNDERTAKINGS
* 11 H SPECIAL OR EXCLUSIVE RIGHTS (ARTICLE 86(1)) 991
*
V
INTRODUCTION 99]
$
L) 4
SCOPE OF ARTICLE 86(1) 99I
I) UNDERTAKINGS WITH SPECIAL OR EXCLUSIVE RIGHTS 991
* -) PUBLIC UNDERTAKINGS 993
*
X
MEASURES CONTRARY TO THE TREATY RULES 996
I) GRANT OI~ RIGHT DISTINGUISHED FROM ITS EXERCISE 996
?) GRANT OF RIGHT IMPERMISSIBLE IN SOME CIRCUMSTANCES .998
*)
(
EXEMPTIONS FROM THE APPLICATION OF ARTICLE 86(1) 1002
1 ROCEDURAL PROVISIONS ENABLING THE COMMISSION TO ENFORCE
ARTICLE 86( 1) (ARTICLE 86(3))
1002
TABLE OF CONTENTS
STATE MEASURES IN RELATION TO STATE MONOPOLIES
OF A COMMERCIAL CHARACTER 1004
§9.7. INTRODUCTION 1004
§9.8. ARTICLE 31 1004
(1) ARTICLE 31(1) 1004
(2) ARTICLE 31(2) 1008
(3) ARTICLE 31(3) 1008
UNDERTAKINGS ENTRUSTED WITH THE OPERATION OF
SERVICES OF GENERAL ECONOMIC INTEREST
(ARTICLE 86(2)) 1008
§9.9. INTRODUCTION 1008
§9.10. SCOPE OF ARTICLE 86(2) 1009
(1) ENTRUSTED UNDERTAKINGS 1010
(2) SERVICES OF GENERAL ECONOMIC INTEREST 1011
(3) REVENUE-PRODUCING MONOPOLIES 1013
§9.11. JUSTIFICATION FOR THE NON-APPLICATION OF THE COMPETITION RULES
1014
(1) OBSTRUCTION OF AN ENTRUSTED UNDERTAKING S TASK TO PROVIDE
SERVICES OF GENERAL ECONOMIC INTEREST 1014
(2) APPLICATION OF EXEMPTION MUST NOT AFFECT TRADE TO AN EXTENT
CONTRARY TO THE COMMUNITY INTEREST 1018
10. PROCEDURE 1021
INTRODUCTION 1021
§10.1. RULES OF PROCEDURE GENERALLY 1021
§10.2. DRASTIC REFORM OF THE PROCEDURAL RULES 1022
(1) ABOLITION OF THE NOTIFICATION AND EXEMPTION SYSTEM 1024
(2) DECENTRALIZED APPLICATION OF ARTICLES 81 AND 82 1025
(3) CONCURRENT APPLICATION OF ARTICLES 81 AND 82 AND NATIONAL
COMPETITION LAW 1032
(4) TRANSITIONAL PROVISIONS 1033
(5) CHALLENGES AHEAD 1034
§10.3. NATURE OF COMMISSION PROCEEDINGS 1035
INVESTIGATIONS CONDUCTED AND INDIVIDUAL
MEASURES ADOPTED BY THE COMMISSION 1037
§10.4. DECISION-MAKING POWER OF THE COMMISSION 1037
§10.5. INFRINGEMENT PROCEEDINGS: OVERVIEW 1037
§10.6. OPENING OF INVESTIGATION 1038
(1) COMPLAINT 1038
(2) THREE-STAGE PROCEDURE FOR ASSESSING COMPLAINTS 1046
(3) PROCEDURAL RIGHTS OF COMPLAINANTS 1049
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(4) OTHER EVENTS TRIGGERING AN INVESTIGATION 1050
§10.7. DISCOVERY PROCEDURE 1050
§10.8. DISCOVERY: REQUESTS FOR INFORMATION 1051
(1) PROCEDURE 1051
(2) NECESSARY INFORMATION 1052
(3) ACTIVE COOPERATION 1053
(4) INCORRECT INFORMATION 1054
(5) TERRITORIAL REACH 1055
§10.9. DISCOVERY: SECTORAL INQUIRIES 1056
§10.10. DISCOVERY: ON-THE-SPOT INVESTIGATIONS 1056
(1) COMMISSION S MEMORANDUM 1057
(2) SUBJECT MATTER OF THE INQUIRY 1059
(3) RIGHT OF ENTRY 1061
(4) RIGHT TO SEARCH 1062
(5) DUTY TO ASSIST 1064
(6) ORAL EXPLANATIONS 1065
(7) COMPANY REPRESENTATIVE 1065
(8) INTERVIEWS 1067
(9) PREPARATION 1068
(10) DISCOVERY: LIMITATIONS 1069
§10.11. DISCOVERY: COOPERATION 1078
§10.12. DISCOVERY: ACCESS TO THE FILE 1079
(1) DEFENDANTS 1079
(2) COMPLAINANTS AND THIRD PARTIES 1086
§10.13. INITIATION OF PROCEDURE 1086
§10.14. STATEMENT OF OBJECTIONS 1087
§10.15. HEARING 1089
(1) THE REGULATION ON PROCEDURE 1089
(2) LEGAL REPRESENTATION 1091
(3) HEARING OFFICER 1091
(4) TYPICAL HEARING 1095
(5) RECORD !096
§10.16. ADVISORY COMMITTEE 1096
§10.17. INTERIM MEASURES 1097
(1) CONDITIONS 1098
(2) PROCEDURE 1099
§10.18. RECOMMENDATIONS 1100
§10.19. FINAL DECISION 1100
(1) POSSIBLE RELIEF 1100
(2) FORMAL REQUIREMENTS . . 1102
TABLE OF CONTENTS
§10.20. FINES AND PERIODIC PENALTY PAYMENTS 1105
(1) FINES FOR PROCEDURAL INFRINGEMENTS 1105
(2) FINES PENALIZING COMPANIES FOR SUBSTANTIVE BREACHES OF THE
COMPETITION RULES 1106
§10.21. LIMITATION PERIODS 1127
(1) IMPOSITION OF PENALTIES 1128
(2) ENFORCEMENT OF SANCTIONS 1128
§10.22. SUCCESSION 1129
§10.23. DECISIONS GRANTING NEGATIVE CLEARANCE OR EXEMPTION 1130
§10.24. THE NOTIFICATION PROCESS 1131
§10.25. SUBSEQUENT PROCEDURE 1131
§10.26. PROVISIONAL DECISION 1131
§10.27. FORMAL DECISION 1132
(1) NEGATIVE CLEARANCE 1132
(2) EXEMPTION 1132
(3) REVOCATION 1133
§10.28. COMFORT LETTER 1133
§10.29. GUIDANCE LETTER 1134
§10.30. SETTLEMENTS 1136
(1) COMMISSION PRACTICE 1136
(2) LEGAL VALUE 1138
(3) COMMITMENTS 1138
COMPLIANCE POLICY 1139
§10.31. PURPOSE OF HAVING AN ACTIVE COMPLIANCE POLICY 1139
§10.32. BENEFITS OF HAVING AN ACTIVE COMPLIANCE POLICY 1139
§10.33. THE COMPLIANCE AUDIT 1140
§10.34. THE COMPLIANCE PROGRAMME 1141
(1) GENERAL STATEMENT 1142
(2) SPECIFIC GUIDELINES 1143
GENERAL MEASURES ADOPTED BY THE COMMISSION 1144
§10.35. EXAMPLES OF GENERAL MEASURES 1144
§10.36. BLOCK EXEMPTIONS 1144
§10.37. NOTICES AND GUIDELINES 1146
JUDICIAL REVIEW 1149
§10.38. JURISDICTION 1149
§10.39. DIRECT ACTIONS 1150
§10.40. REVIEWABLE ACTS 1150
§10.41. LOCUS STANDI 1151
§10.42. GROUNDS FOR APPEAL 1153
§10.43. OUTCOME OF APPEAL 1153
COMPETITION LAW OF THE EUROPEAN COMMUNITY
§10.44. ACTION FOR FAILURE TO ACT 1154
§10.45. TIME LIMITS 1155
(1) ACTIONS FOR ANNULMENT 1155
(2) ACTIONS FOR FAILURE TO ACT 1156
§10.46. INTERIM MEASURES 1157
§10.47. THIRD PARTY INTERVENTION 1160
§10.48. STANDARD OF PROOF 1161
§10.49. COSTS 1164
§10.50. LENGTH OF PROCEEDINGS 1165
§10.51. PRELIMINARY RULINGS 1165
§10.52. APPEALS TO THE COURT OF JUSTICE 1166
11. PRIVATE ENFORCEMENT 1167
NATIONAL COURTS 1167
§11.1. INTRODUCTION 1167
§11.2. DECENTRALIZATION PROCESS 1168
§11.3. ADVANTAGES AND DISADVANTAGES OF PROCEDURES BEFORE NATIONAL COURTS
1171
§11.4. APPLICATION OF EC COMPETITION LAW BY NATIONAL COURTS 1172
(1) POWERS OF NATIONAL COURTS 1172
(2) PARALLEL OR CONSECUTIVE APPLICATION OF THE EC COMPETITION RULES
BY THE COMMISSION AND BY NATIONAL COURTS 1174
(3) RIGHT TO DAMAGES BEFORE NATIONAL COURTS 1180
(4) PROCEDURAL ASPECTS OF ENFORCEMENT OF EC COMPETITION LAW
BEFORE NATIONAL COURTS 1185
§11.5. COOPERATION BETWEEN NATIONAL COURTS AND THE COMMISSION 1189
(1) ASSISTANCE OF NATIONAL COURTS BY THE COMMISSION 1189
(2) ASSISTANCE OF THE COMMISSION BY NATIONAL COURTS 1192
§11.6. CONCLUSION 1193
ARBITRATION 1194
§11.7. INTRODUCTION 1194
§11.8. EC COMPETITION LAW AND ARBITRATION: GENERAL PRINCIPLES 1195
§11.9. IMPACT OF THE REGULATION ON PROCEDURE ON ARBITRATION 1197
12. SPECIAL SECTORS 1199
TELECOMMUNICATIONS 1199
§12.1. INTRODUCTION 1199
§12.2. COMPETITION ISSUES ARISING IN THE ELECTRONIC COMMUNICATIONS
SECTOR . 1200
(1) ARTICLE 81 1200
(2) APPLICATION OF THE MERGER REGULATION IN THE ELECTRONIC
COMMUNICATIONS SECTOR . 1224
TABLE OF CONTENTS
(3) ARTICLE 82 1234
(4) SECTOR INQUIRIES 1245
§12.3. REGULATORY FRAMEWORK APPLYING TO THE ELECTRONIC COMMUNICATIONS
SECTOR 1250
(1) THE OLD REGULATORY FRAMEWORK 1251
(2) THE NEW REGULATORY FRAMEWORK 1256
(3) THIRD GENERATION (3G) MOBILE COMMUNICATIONS 1271
THE INTERNET 1274
§12.4. INTRODUCTION 1274
§12.5. ACCESS TO THE INTERNET 1275
(1) ACCESS TO THE LOCAL LOOP 1276
§12.6. FORECLOSURE AND INTERNET CONNECTIVITY AMONG ISPS 1278
(1) STRUCTURE OF THE INTERNET 1278
(2) MERGER ACTIVITY CONCERNING INTERNET CONNECTIVITY 1279
§12.7. CONCENTRATIONS TO CREATE INTERNET CONTENT PROVIDERS 1281
(1) PROBLEMS OF MARKET DEFINITION 1281
(2) ENSURING COMPETITION IN EMERGING CONTENT MARKETS 1282
§12.8. ISSUES ARISING IN THE COURSE OF ELECTRONIC COMMERCE RELATIONSHIPS
. . . 1284
(1) ELECTRONIC EXCHANGES 1285
TRANSPORT 1294
§12.9. INTRODUCTION 1294
§12.10. AIR TRANSPORT 1294
(1) INTRODUCTION 1294
(2) MARKET LIBERALIZATION 1295
(2) PROCEDURAL FRAMEWORK FOR ENFORCEMENT OF COMPETITION LAW
IN THE AIR TRANSPORT SECTOR: OVERVIEW 1301
(3) COMPETITION PRIORITIES IN THE AIR TRANSPORT SECTOR 1307
§12.11. MARITIME TRANSPORT 1325
(1) INTRODUCTION 1325
(2) THE IMPLEMENTATION OF ARTICLES 81 AND 82 OF THE EC TREATY
IN THE MARITIME SECTOR 1329
(3) THE MARITIME TRANSPORT REGULATION: APPLICATION OF ARTICLE
81 OF THE EC TREATY TO TECHNICAL AGREEMENTS 1330
(4) THE MARITIME TRANSPORT REGULATION: BLOCK EXEMPTION
FOR LINER CONFERENCES 1332
(5) THE CONSORTIA BLOCK EXEMPTION 1340
§12.12. TRANSPORT BY RAIL, ROAD AND INLAND WATERWAY 1344
(1) INTRODUCTION 1344
(2) REGULATION 1017/68 1345
(3) LIBERALIZATION IN THE RAILWAY SECTOR 1348
COMPETITION LAW OF THE EUROPEAN COMMUNITY
POSTAL SERVICES
1351
§12.13. INTRODUCTION
13
51
§12.14. LEGISLATIVE DEVELOPMENTS IN THE POSTAL SECTOR 1352
(1) THE POSTAL DIRECTIVE 1353
(2) THE POSTAL NOTICE 1354
(3) THE NEW POSTAL DIRECTIVE 1355
§12.15. CASES AND DECISIONS 1356
(1) SCOPE OF EXISTING MONOPOLY RIGHTS 1357
(2) IMPROPER IMPLEMENTATION OF THE POSTAL DIRECTIVE 1359
(3) ABUSE OF A DOMINANT POSITION 1360
(4) PRICE-FIXING AGREEMENTS 1365
ELECTRICITY AND GAS 1368
§12.16. INTRODUCTION 1368
(1) BACKGROUND 1368
(2) HISTORY 1370
(3) THE OLD REGULATORY FRAMEWORK: THE FIRST GAS AND ELECTRICITY
DIRECTIVES 1370
(4) THE INSTITUTIONAL FRAMEWORK COMMON TO THE ELECTRICITY AND GAS
MARKETS 1371
§12.17. THE NEW REGULATORY FRAMEWORK FOR ELECTRICITY 1372
(1) PROGRESSIVE QUANTITATIVE LIBERALIZATION 1372
(2) IMPROVED QUALITATIVE LIBERALIZATION 1372
(3) SECURITY OF ELECTRICITY SUPPLY 1375
(4) PUBLIC SERVICE OBJECTIVES 1376
§12.18. REGULATION ON CROSS-BORDER EXCHANGES OF ELECTRICITY 1377
(1) TSO COMPENSATION 1378
(2) ACCESS CHARGES 1378
(3) PROVISION OF INFORMATION REGARDING INTERCONNECTION CAPACITIES . .
1379
(4) CONGESTION MANAGEMENT 1379
§12.19. SAFEGUARDING SECURITY OF ELECTRICITY SUPPLY AND PROMOTING
INFRASTRUCTURE INVESTMENT 1380
(1) ROLES AND RESPONSIBILITIES OF TSOS AND ELECTRICITY SUPPLIERS ....
1380
(2) NETWORK SECURITY 1381
(3) BALANCING SUPPLY AND DEMAND 1381
(4) NETWORK INVESTMENT 1382
(5) INTERCONNECTOR CONSTRUCTION 1382
§12.20. THE NEW REGULATORY FRAMEWORK FOR GAS 1383
(1) PROGRESSIVE QUANTITATIVE LIBERALIZATION 1383
(2) IMPROVED QUALITATIVE LIBERALIZATION 1383
(2) SECURITY OF GAS SUPPLY 1386
TABLE OF CONTENTS
(3) PUBLIC SERVICE OBJECTIVES 1386
§12.21. CONDITIONS OF ACCESS TO THE GAS TRANSMISSION NETWORKS 1387
(1) ACCESS CHARGES 1387
(2) CAPACITY ALLOCATION AND CONGESTION MANAGEMENT PROCEDURES . . . 1387
(3) BALANCING AND IMBALANCE CHARGES 1388
(4) SECONDARY MARKETS 1388
§12.22. SAFEGUARDING SECURITY OF GAS SUPPLY 1388
(1) DEFINING NATIONAL SECURITY OF GAS SUPPLY POLICY 1389
(2) MINIMUM SECURITY OF GAS SUPPLY STANDARDS 1390
(3) MINIMUM SHARE OF NEW GAS SUPPLY FROM NON-EU COUNTRIES .... 1390
(4) AUTHORIZATION PROCEDURES FOR BUILDING STORAGE AND LNG
FACILITIES 1391
(5) COMMISSION INTERVENTION IN EXTRAORDINARY SUPPLY SITUATIONS ... 1391
§12.23. CASE LAW: FREE MOVEMENT AND COMPETITION RULES IN THE ENERGY
FIELD 1391
(1) ARTICLES 28 AND 30: CAMPUS OIL 1391
(2) ARTICLE 86(2): ALMELO 1393
(3) ARTICLE 86(2): THE GAS AND ELECTRICITY CASES 1394
(4) COMMISSION PRACTICE 1396
THE INSURANCE SECTOR 1402
§12.24. THE APPLICABILITY OF THE COMPETITION RULES TO THE INSURANCE
INDUSTRY 1402
§12.25. INSURANCE BLOCK EXEMPTION 1403
(1) JOINT CALCULATIONS, TABLES AND STUDIES OF RISKS 1405
(2) STANDARD POLICY CONDITIONS AND MODELS 1407
(3) COMMON COVERAGE OF CERTAIN TYPES OF RISKS 1409
(4) SECURITY DEVICES 1412
§12.26. INSURANCE INTERMEDIARIES 1413
BANKING 1414
§12.27. INTRODUCTION 1414
(1) APPLICATION OF COMPETITION LAW TO BANKING SERVICES 1414
(2) MERGER CONTROL 1415
(3) EFFECT ON TRADE BETWEEN MEMBER STATES 1415
§12.28. APPLICATION OF ARTICLE 81(1) TO PRICE AGREEMENTS 1417
(1) PRICE AGREEMENTS CONCERNING SERVICES PROVIDED BY BANKS
TO THEIR CUSTOMERS 1417
(2) PRICE AGREEMENTS CONCERNING SERVICES PROVIDED BETWEEN BANKS. . 1421
§12.29. AGREEMENTS NOT RESTRICTING COMPETITION 1425
§12.30. ARTICLE 82 1427
COMPETITION POLICY AND SPORTS 1428
COMPETITION LAW OF THE EUROPEAN COMMUNITY
§12.31. INTRODUCTION 1428
§12.32. SPECIFIC CHARACTERISTICS OF SPORT AND THEIR IMPLICATIONS FOR
COMPETITION LAW 1429
§12.33. ORGANIZATION OF SPORT 1430
(1) PRINCIPLE OF TERRITORIALLY 1431
(2) MONOPOLY OF THE FEDERATIONS 1432
(3) RULES AIMED AT THE PRESERVATION OF TRUE AND FAIR COMPETITION .. 1433
§12.34. BROADCASTING RIGHTS 1434
(1) PARTICULARITIES OF SPORT BROADCASTING 1435
(2) RELEVANT MARKET 1436
(3) EXCLUSIVITY 1437
(4) JOINT SELLING AND PURCHASING 1441
(5) ORGANIZATIONAL RULES IN THE AREA OF BROADCASTING 1444
§12.35. OTHER SOURCES OF REVENUES FOR ASSOCIATIONS AND CLUBS 1445
(1) TICKETING 1446
(2) SPONSORSHIP AGREEMENTS 1447
§12.36. RULES RELATING TO PLAYERS 1448
(1) MOVEMENT OF PLAYERS/TRANSFER RIGHTS 1448
(2) RULES ON PLAYERS AGENTS 1451
(3) DOPING 1452
NUCLEAR. AGRICULTURE AND DEFENCE 1453
§12.37. OUTLINE OF THIS SECTION 1453
§12.38. NUCLEAR ENERGY 1453
§12.39. AGRICULTURE 1455
(1) APPLICATION OF THE COMPETITION RULES TO AGRICULTURE 1455
(2) EXCEPTIONS UNDER THE REGULATION ON COMPETITION IN
AGRICULTURAL PRODUCTS 1456
(3) PROCEDURE 1459
§12.40. DEFENCE 1460
ANNEX I. BASIC COMPETITION PROVISIONS OF THE EC TREATY 1463
ANNEX II. TABLE OF CASES 1465
ANNEX III. FINES FOR SUBSTANTIVE INFRINGEMENTS 1521
ANNEX IV. COUNCIL REGULATION (EC) NO 1/2003 1585
ANNEX V. COUNCIL REGULATION (EC) NO 139/2004 1621
CORRELATION TABLE 1659
INDEX 1663
XL
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TABLE OF CONTENTS
PREFACE V
ABOUT THE AUTHORS VII
1. INTRODUCTION 1
A TIME OF CHANGE 1
§1.1. RECENT DEVELOPMENTS - 'MODERNIZATION' AND CONVERGENCE 1
§1.2. OTHER SIGNIFICANT CHANGES SINCE THE THIRD EDITION 4
INSTITUTIONS 6
§1.3. SUMMARY OF INSTITUTIONS 6
§1.4. THE COMMISSION 7
(1) GENERAL 7
(2) ROLE OF THE COMMISSION 7
(3) ORGANIZATION OF THE COMMISSION 8
(4) CONCLUSION ON THE COMMISSION 12
§1.5. THE COUNCIL OF MINISTERS 12
§1.6. THE EUROPEAN PARLIAMENT 13
§1.7. THE ADVISORY COMMITTEES 14
§1.8. THE ECONOMIC AND SOCIAL COMMITTEE 15
§1.9. THE COURT OF FIRST INSTANCE 15
§1.10. THE COURT OF JUSTICE 17
§1.11. THE COMPETITION AUTHORITIES OF THE MEMBER STATES 17
§1.12. NATIONAL COURTS 19
§1.13. TRANSPARENCY OF INFORMATION 20
ENFORCEMENT 22
§1.14. ENFORCEMENT POLICY AND PRIORITIES - FROM SINGLE MARKET
INTEGRATION TO CARTELS AND ABUSES OF DOMINANT POSITION 22
§1.15. ENFORCEMENT TECHNIQUE 23
§1.16. ENFORCEMENT PROCEDURE 24
§1.17. INTERNATIONAL COLLABORATION IN ENFORCEMENT 24
2. BASIC PRINCIPUES 27
ARTICLE 81: AGREEMENTS AND OTHER CONCERTED ACTIONS
THAT ARE RESTRICTIVE OF COMPETITION 27
§2.1. INTRODUCTION 27
§2.2. TEXT OF THE ARTICLE 27
COMPETITION LAW OF THE EUROPEAN COMMUNITY
ARTICLE 81(1): THE PROHIBITION OF AGREEMENTS AND
OTHER CONCERTED ACTION 28
§2.3. CONDITIONS OF PROHIBITION 28
§2.4. THE MEANING OF AN 'UNDERTAKING' 29
(1) THE ENTITY MUST BE ENGAGED IN AN ECONOMIC ACTIVITY 29
(2) THE LEGAL STATUS OF THE ENTITY DOES NOT MATTER 31
§2.5. AGREEMENT OR CONCERTED ACTION: REQUIREMENT OF MORE THAN ONE
INDEPENDENT UNDERTAKING 34
(1) UNILATERAL ACTION EXCLUDED 34
(2) EMPLOYEE RELATIONSHIPS 35
(3) AGENCY RELATIONSHIP 35
(4) RELATED COMPANIES: THE 'ECONOMIC ENTITY' 36
(5) COMPANIES RELATED BY SUCCESSION 38
§2.6. FORMS OF PROHIBITED CONDUCT 40
(1) AGREEMENT 40
(2) DECISIONS BY ASSOCIATIONS OF UNDERTAKINGS 49
(3) CONCERTED PRACTICES 50
§2.7. STATE COMPULSION 62
(1) STATE MEASURES REQUIRING ANTI-COMPETITIVE CONDUCT 62
(2) STATE MEASURES RESTRICTING COMPETITION 67
§2.8. RESTRICTION OF COMPETITION 68
(1) RESTRICTION BY OBJECT OR EFFECT 69
(2) APPRECIABLE RESTRICTION OF COMPETITION 73
(3) NATURE OF COMPETITION WHICH MAY BE RESTRICTED 77
(4) ANCILLARY RESTRAINTS FALLING OUTSIDE THE SCOPE OF ARTICLE 81(1) 79
(5) DOES A RULE OF REASON APPLY TO ARTICLE 81(1)? 80
ARTICLE 81(2): THE NULLITY SANCTION 82
ARTICLE 81(3): EXEMPTION FROM THE PROHIBITION 83
§2.9. INTRODUCTION 83
§2.10. GENERAL PRINCIPLES FOR THE APPLICATION OF ARTICLE 81(3) 84
(1) EXEMPTION ONLY APPLIES FOR AS LONG AS THE FOUR RELEVANT
CONDITIONS ARE FULFILLED 84
(2) HARDCORE RESTRICTIONS 85
(3) RELATIONSHIP BETWEEN ARTICLE 81(3) AND ARTICLE 82 85
§2.11. THE FOUR SUBSTANTIVE CONDITIONS UNDER ARTICLE 81(3) 87
§2.12. EFFICIENCY GAINS: THE CONTRIBUTION TO PRODUCTION OR DISTRIBUTION
OR TO TECHNICAL OR ECONOMIC PROGRESS (FIRST CONDITION UNDER
ARTICLE 81(3)) 87
(1) THE EFFICIENCIES MUST CREATE OBJECTIVE, COMPENSATORY BENEFITS .
87
(2) EVIDENTIARY BURDEN
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(3) DIFFERENT FORMS OF EFFICIENCY GAINS 89
§2.13. CONSUMER WELFARE: THE 'FAIR SHARE OF THE BENEFITS' CRITERION
(SECOND
CONDITION UNDER ARTICLE 81(3)) 90
(1) GENERAL PRINCIPLES APPLYING TO THE PASSING ON OF EFFICIENCIES 90
(2) ASSESSMENT OF PASS-ON OF COST EFFICIENCIES 92
(3) ASSESSMENT OF PASS-ON OF VALUE IN THE CASE OF NEW OR IMPROVED
PRODUCTS 95
§2.14. INDISPENSABILITY OF THE RESTRICTION TO ACHIEVE PRO-COMPETITIVE
EFFECTS
(THIRD CONDITION UNDER ARTICLE 81(3)) 95
(1) INDISPENSABILITY OF THE AGREEMENT 96
(2) INDISPENSABILITY OF INDIVIDUAL RESTRICTIONS 96
§2.15. PRESERVING EFFECTIVE COMPETITION: THE 'ELIMINATION OF
COMPETITION'
CONDITION (FOURTH CONDITION UNDER ARTICLE 81(3)) 97
(1) RESIDUAL COMPETITION ON THE MARKET 97
(2) ACTUAL MARKET CONDUCT 98
(3) PAST COMPETITIVE INTERACTION 98
(4) DIFFERENTIATED PRODUCTS 98
(5) POTENTIAL COMPETITION AND ENTRY BARRIERS 99
§2.16. BLOCK EXEMPTIONS 99
EFFECT ON TRADE BETWEEN MEMBER STATES 100
§2.17. INTRODUCTION 100
§2.18. THE CONCEPT OF 'TRADE' 101
§2.19. ESTABLISHING AN EFFECT ON TRADE 102
(1) PATTERN OF TRADE TEST 102
(2) STRUCTURAL TEST 105
§2.20. EFFECT ON TRADE MUST BE APPRECIABLE 106
(1) GENERAL PRINCIPLE 106
(2) THE 'NAAT' RULE 107
§2.21. APPLICATION OF THE APPRECIABILITY TEST TO COMMON TYPES OF
AGREEMENTS AND ABUSES 109
(1) AGREEMENTS AND ABUSES COVERING OR IMPLEMENTED IN SEVERAL
MEMBER STATES 109
(2) AGREEMENTS AND ABUSES COVERING A SINGLE MEMBER STATE OR ONLY
PART OF ONE U0
(3) AGREEMENTS AND ABUSES INVOLVING IMPORTS AND EXPORTS WITH
UNDERTAKINGS LOCATED IN THIRD COUNTRIES OR INVOLVING
UNDERTAKINGS LOCATED IN THIRD COUNTRIES 113
ARTICLE 82 AND THE CONCEPT OF DOMINANCE 115
§2.22. SCOPE OF ARTICLE 82
LL5
§2.23. DEFINITION OF A 'DOMINANT POSITION' 117
COMPETITION LAW OF THE EUROPEAN COMMUNITY
ARTICLE 81(1): THE PROHIBITION OF AGREEMENTS AND
OTHER CONCERTED ACTION 28
§2.3. CONDITIONS OF PROHIBITION 28
§2.4. THE MEANING OF AN 'UNDERTAKING' 29
(1) THE ENTITY MUST BE ENGAGED IN AN ECONOMIC ACTIVITY 29
(2) THE LEGAL STATUS OF THE ENTITY DOES NOT MATTER 31
§2.5. AGREEMENT OR CONCERTED ACTION: REQUIREMENT OF MORE THAN ONE
INDEPENDENT UNDERTAKING 34
(1) UNILATERAL ACTION EXCLUDED 34
(2) EMPLOYEE RELATIONSHIPS 35
(3) AGENCY RELATIONSHIP 35
(4) RELATED COMPANIES: THE 'ECONOMIC ENTITY' 36
(5) COMPANIES RELATED BY SUCCESSION 38
§2.6. FORMS OF PROHIBITED CONDUCT 40
(1) AGREEMENT 40
(2) DECISIONS BY ASSOCIATIONS OF UNDERTAKINGS 49
(3) CONCERTED PRACTICES 50
§2.7. STATE COMPULSION 62
(1) STATE MEASURES REQUIRING ANTI-COMPETITIVE CONDUCT 62
(2) STATE MEASURES RESTRICTING COMPETITION 67
§2.8. RESTRICTION OF COMPETITION 68
(1) RESTRICTION BY OBJECT OR EFFECT 69
(2) APPRECIABLE RESTRICTION OF COMPETITION 73
(3) NATURE OF COMPETITION WHICH MAY BE RESTRICTED 77
(4) ANCILLARY RESTRAINTS FALLING OUTSIDE THE SCOPE OF ARTICLE 81(1) 79
(5) DOES A RULE OF REASON APPLY TO ARTICLE 81(1)? 80
ARTICLE 81(2): THE NULLITY SANCTION 82
ARTICLE 81(3): EXEMPTION FROM THE PROHIBITION 83
§2.9. INTRODUCTION 83
§2.10. GENERAL PRINCIPLES FOR THE APPLICATION OF ARTICLE 81(3) 84
(1) EXEMPTION ONLY APPLIES FOR AS LONG AS THE FOUR RELEVANT
CONDITIONS ARE FULFILLED 84
(2) HARDCORE RESTRICTIONS 85
(3) RELATIONSHIP BETWEEN ARTICLE 81(3) AND ARTICLE 82 85
§2.11. THE FOUR SUBSTANTIVE CONDITIONS UNDER ARTICLE 81(3) 87
§2.12. EFFICIENCY GAINS: THE CONTRIBUTION TO PRODUCTION OR DISTRIBUTION
OR TO TECHNICAL OR ECONOMIC PROGRESS (FIRST CONDITION UNDER
ARTICLE 81(3)) 87
(1) THE EFFICIENCIES MUST CREATE OBJECTIVE, COMPENSATORY BENEFITS .
87
(2) EVIDENTIARY BURDEN . . 88
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(3) DIFFERENT FORMS OF EFFICIENCY GAINS 89
§2.13. CONSUMER WELFARE: THE 'FAIR SHARE OF THE BENEFITS' CRITERION
(SECOND
CONDITION UNDER ARTICLE 81(3)) 90
(1) GENERAL PRINCIPLES APPLYING TO THE PASSING ON OF EFFICIENCIES 90
(2) ASSESSMENT OF PASS-ON OF COST EFFICIENCIES 92
(3) ASSESSMENT OF PASS-ON OF VALUE IN THE CASE OF NEW OR IMPROVED
PRODUCTS 95
§2.14. INDISPENSABILITY OF THE RESTRICTION TO ACHIEVE PRO-COMPETITIVE
EFFECTS
(THIRD CONDITION UNDER ARTICLE 81(3)) 95
(1) INDISPENSABILITY OF THE AGREEMENT 96
(2) INDISPENSABILITY OF INDIVIDUAL RESTRICTIONS 96
§2.15. PRESERVING EFFECTIVE COMPETITION: THE 'ELIMINATION OF
COMPETITION'
CONDITION (FOURTH CONDITION UNDER ARTICLE 81(3)) 97
(1) RESIDUAL COMPETITION ON THE MARKET 97
(2) ACTUAL MARKET CONDUCT 98
(3) PAST COMPETITIVE INTERACTION 98
(4) DIFFERENTIATED PRODUCTS 98
(5) POTENTIAL COMPETITION AND ENTRY BARRIERS 99
§2.16. BLOCK EXEMPTIONS 99
EFFECT ON TRADE BETWEEN MEMBER STATES 100
§2.17. INTRODUCTION 100
§2.18. THE CONCEPT OF 'TRADE' 101
§2.19. ESTABLISHING AN EFFECT ON TRADE 102
(1) PATTERN OF TRADE TEST 102
(2) STRUCTURAL TEST 105
§2.20. EFFECT ON TRADE MUST BE APPRECIABLE 106
(1) GENERAL PRINCIPLE 106
(2) THE 'NAAT' RULE 107
§2.21. APPLICATION OF THE APPRECIABILITY TEST TO COMMON TYPES OF
AGREEMENTS AND ABUSES 109
(1) AGREEMENTS AND ABUSES COVERING OR IMPLEMENTED IN SEVERAL
MEMBER STATES 109
(2) AGREEMENTS AND ABUSES COVERING A SINGLE MEMBER STATE OR ONLY
PART OF ONE 110
(3) AGREEMENTS AND ABUSES INVOLVING IMPORTS AND EXPORTS WITH
UNDERTAKINGS LOCATED IN THIRD COUNTRIES OR INVOLVING
UNDERTAKINGS LOCATED IN THIRD COUNTRIES 113
ARTICLE 82 AND THE CONCEPT OF DOMINANCE 115
§2.22. SCOPE OF ARTICLE 82 115
§2.23. DEFINITION OF A 'DOMINANT POSITION' 117
COMPETITION LAW OF THE EUROPEAN COMMUNITY
$2.24. SUPER-DOMINANCE 119
$2.25. COLLECTIVE DOMINANCE 119
(1) ECONOMIC LINKS OR CONNECTING FACTORS 121
(2) UNIFORM OR COORDINATED CONDUCT 121
$2.26. RELEVANT CRITERIA FOR EVALUATING DOMINANCE 123
(1) MARKET SHARE 123
(2) DEPENDENCE 126
(3) ADDITIONAL STRUCTURAL FACTORS 127
(4) ADDITIONAL BEHAVIOURAL FACTORS 130
MARKET DEFINITION 132
$2.27. INTRODUCTION: THE IMPORTANCE OF MARKET DEFINITION 132
$2.28. THE NOTICE ON MARKET DEFINITION 133
(1) RELEVANT PRODUCT MARKET 135
(2) RELEVANT GEOGRAPHIC MARKET 141
$2.29. PROCESS OF DEFINING THE RELEVANT MARKET 144
$2.30. APPLICATION TO SPECIFIC MARKETS 146
(1) PURCHASING MARKETS 146
(2) TECHNOLOGY MARKETS 147
(3) AFTER-MARKETS 148
THE INTERNATIONAL DIMENSION OF EC COMPETITION LAW . 149
$2.31. OUTLINE OF THIS SECTION 149
$2.32. EXTRATERRITORIAL APPLICATION OF EC COMPETITION LAW 150
(1) INTRODUCTION 150
(2) THE ECONOMIC ENTITY DOCTRINE 151
(3) THE EFFECTS DOCTRINE 152
(4) THE IMPLEMENTATION DOCTRINE 157
(5) CONSIDERATIONS OF COMITY 158
(6) CONCLUSION 159
$-*33. BILATERAL RELATIONS 160
(1) EU US COOPERATION 161
(2) EU/CANADA COOPERATION 180
(3) EU JAPAN COOPERATION 180
$2.34. MULTILATERAL AGREEMENTS 181
(1) INTERNATIONAL COMPETITION NETWORK 182
(2) ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT 183
(3) UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT 183
(4) WORLD TRADE ORGANIZATION 184
$-*35. THE WIDENING OF THE EU 185
(1) ENLARGEMENT OF 1 MAY 2004 186
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(2) AGREEMENTS WITH THE CANDIDATE COUNTRIES: BULGARIA, ROMANIA
AND TURKEY 189
(3) EUROPEAN ECONOMIC AREA 193
3. VERTICAL AGREEMENTS 203
INTRODUCTION 203
AGENCY AGREEMENTS 205
§3.1. INTRODUCTION 205
§3.2. CATEGORIZATION OF AGENCY AGREEMENTS 206
(1) RISKS RELATED TO CONTRACTS CONCLUDED BY THE AGENT 206
(2) RISKS RELATED TO MARKET-SPECIFIC INVESTMENTS 207
§3.3. EFFECT OF FREEDOM TO SET PRICING 208
§3.4. LEVEL OF RISK 209
§3.5. AGENT FORMS PART OF THE PRINCIPAL'S ACTIVITIES 209
§3.6. OBLIGATIONS IMPOSED ON GENUINE AGENTS 211
SUBCONTRACTING AGREEMENTS 211
§3.7. INTRODUCTION 211
§3.8. APPLICATION OF ARTICLE 81(1) TO EXCLUSIVITY PROVISIONS IN
SUBCONTRACTING AGREEMENTS 212
§3.9. THE SUBCONTRACTING NOTICE 213
§3.10. APPLICATION OF ARTICLE 81 OUTSIDE THE SUBCONTRACTING NOTICE 215
DE MINIMIS NOTICE 217
THE VERTICAL AGREEMENTS BLOCK EXEMPTION 217
§3.11. OVERVIEW 217
§3.12. THE SCOPE OF APPLICATION OF THE VERTICAL AGREEMENTS BLOCK
EXEMPTION 218
(1) DEFINITION OF VERTICAL AGREEMENTS 218
(2) PARTIAL EXCLUSION: AGREEMENTS BETWEEN COMPETING UNDERTAKINGS . . 219
(3) PROVISIONS RELATED TO INTELLECTUAL PROPERTY 220
(4) ASSOCIATIONS OF RETAILERS 222
(5) RELATIONSHIP WITH OTHER BLOCK EXEMPTION REGULATIONS 223
§3.13. MARKET SHARE TEST 224
§3.14. HARDCORE RESTRICTIONS 226
(1) RESALE PRICES (ARTICLE 4(A)) 226
(2) RESALE RESTRICTIONS ON THE BUYER (ARTICLE 4(B)) 230
(3) RESTRICTIONS ON THE SUPPLIER (ARTICLE 4(E)) 238
§3.15. NON-COMPETE OBLIGATIONS 239
(1) MAXIMUM DURATION 239
(2) POST-TERM RESTRICTIONS 240
(3) SELECTIVE DISTRIBUTION 241
§3.16. WITHDRAWAL OF THE VERTICAL AGREEMENTS BLOCK EXEMPTION 241
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(1) INDIVIDUAL AGREEMENTS 242
(2) ENTIRE MARKET 243
PARALLEL TRADE AND TERRITORIAL RESTRICTIONS 244
§3.17. INTRODUCTION 244
(1) INTRA-BRAND COMPETITION 245
(2) MARKET INTEGRATION 245
(3) PROTECTION OF THE PARALLEL TRADER 247
§3.18. FORMS OF TERRITORIAL RESTRICTION 247
(1) TREATMENT OF UNILATERAL CONDUCT 249
(2) INTERACTION OF EC COMPETITION LAW WITH INTELLECTUAL PROPERTY
RIGHTS 250
§3.19. DIRECT EXPORT RESTRICTIONS 251
(1) WITHIN THE COMMUNITY 252
(2) OUTSIDE THE COMMUNITY 254
§3.20. OTHER FORMS OF RESTRICTIONS 260
(1) REFUSALS TO SUPPLY AND LIMITATION OF SUPPLY 260
(2) REFERRAL POLICIES AND PASS-OVER PAYMENTS 261
(3) DIFFERENTIAL PRICING 262
(4) PRODUCT DIFFERENTIATION 266
(5) WARRANTY AND AFTER-SALES SERVICE 268
(6) MONITORING SYSTEMS 270
(7) OTHER SCHEMES 270
LIMITED DISTRIBUTION 271
§3.21. INTRODUCTION 271
§3.22. STRUCTURE OF ANALYSIS 272
§3.23. DE MINIMIS NOTICE 273
§3.24. VERTICAL AGREEMENTS BLOCK EXEMPTION 274
§3.25. THE APPLICATION OF ARTICLE 81(1) 274
(1) EXCLUSIVE DISTRIBUTION AGREEMENTS 275
(2) EXCLUSIVE CUSTOMER ALLOCATION AGREEMENTS 280
(3) EXCLUSIVE SUPPLY AGREEMENTS 280
§3.26. THE APPLICATION OF ARTICLE 81(3) 284
(1) EXCLUSIVE DISTRIBUTION AGREEMENTS 284
(2) EXCLUSIVE CUSTOMER ALLOCATION AGREEMENTS 287
(3) EXCLUSIVE SUPPLY AGREEMENTS 288
SELECTIVE DISTRIBUTION 289
§3.27. INTRODUCTION 289
§3.28. STRUCTURE OF ANALYSIS 290
§3.29. DE MINIMIS NOTICE 290
§3.30. THE VERTICAL AGREEMENTS BLOCK EXEMPTION 290
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§3.31. THE APPLICATION OF ARTICLE 81(1) - THE CASE LAW 291
(1) THE NATURE OF THE PRODUCT 292
(2) QUALITATIVE AND PROPORTIONATE CRITERIA 295
(3) QUANTITATIVE CRITERIA 298
(4) NON-DISCRIMINATION - ADMISSION PROCEDURE 299
(5) THE SELECTIVE DISTRIBUTION SYSTEM MUST ENHANCE COMPETITION . 301
(6) THE STRUCTURE OF THE MARKET: CUMULATIVE EFFECT 301
§3.32. THE APPLICATION OF ARTICLE 81(3) 302
(1) INDIVIDUAL EFFECT 303
(2) CUMULATIVE EFFECT 304
(3) FORECLOSURE OF COMPETITION 306
(4) EXCLUSIVITY AND TERRITORIAL RESTRICTIONS 306
FRANCHISING 307
§3.33. INTRODUCTION 307
§3.34. STRUCTURE OF ANALYSIS 308
§3.35. COMBINATION OF FRANCHISING WITH SPECIFIC FORMS OF DISTRIBUTION
309
(1) SELECTIVE DISTRIBUTION 309
(2) EXCLUSIVE DISTRIBUTION 310
§3.36. DE MINIMIS NOTICE 310
§3.37. THE VERTICAL AGREEMENTS BLOCK EXEMPTION 310
§3.38. CASE LAW AND ADMINISTRATIVE PRACTICE CONCERNING FRANCHISE
AGREEMENTS 312
(1) PRONUPTIA 312
(2) ADMINISTRATIVE PRACTICE OF THE COMMISSION 313
§3.39. TYPES OF RESTRICTIONS IN FRANCHISING AGREEMENTS 313
(1) RESTRICTIONS NECESSARY TO PROTECT THE FRANCHISOR'S KNOW-HOW . 313
(2) RESTRICTIONS PROTECTING THE IDENTITY AND REPUTATION OF THE FRANCHISE
314
(3) LOCATION CLAUSES AND INTRA-FRANCHISE MARKET SHARING 319
§3.40. APPLICATION OF ARTICLE 81(3) TO FRANCHISING AGREEMENTS 320
NON-COMPETE OBLIGATIONS, QUANTITY FORCING AND TYING 322
§3.41. INTRODUCTION 322
(1) NON-COMPETE OBLIGATIONS 322
(2) QUANTITY FORCING 324
(3) TYING 324
§3.42. STRUCTURE OF ANALYSIS 326
§3.43. DE MINIMIS NOTICE 326
§3.44. THE VERTICAL AGREEMENTS BLOCK EXEMPTION 326
§3.45. ANALYSIS OF NON-COMPETE OBLIGATIONS UNDER ARTICLE 81(1) 327
(1) OVERVIEW 327
(2) ESTABLISHING THE EXISTENCE OF MARKET-WIDE FORECLOSURE EFFECTS .
329
(3) INDIVIDUAL CONTRIBUTION TO FORECLOSURE EFFECTS 335
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(4) INDIVIDUAL AGREEMENTS IN A NETWORK 336
(5) OBJECTIVE JUSTIFICATIONS FOR NON-COMPETE OBLIGATIONS 337
(6) USE OF PREMISES OR EQUIPMENT OWNED BY THE SUPPLIER 337
(7) THE PRACTICAL DIFFICULTIES OF MEASURING FORECLOSURE EFFECTS 338
§3.46. APPLICATION OF ARTICLE 81(1) TO TYING OBLIGATIONS 339
§3.47. APPLICATION OF ARTICLE 81(3) TO NON-COMPETE OBLIGATIONS 340
(1) NON-COMPETE OBLIGATIONS DESIGNED TO PREVENT HOLD-UP
PROBLEMS RELATING TO INVESTMENTS MADE BY THE SUPPLIER 342
(2) NON-COMPETE OBLIGATIONS DESIGNED TO PREVENT HOLD-UP
PROBLEMS RELATING TO THE TRANSFER OF KNOW-HOW BY THE SUPPLIER . . 344
(3) NON-COMPETE OBLIGATIONS DESIGNED TO PREVENT FREE RIDING 344
(4) NON-COMPETE OBLIGATIONS DESIGNED TO CORRECT CAPITAL MARKET
IMPERFECTIONS 345
(5) USE OF NON-COMPETE OBLIGATIONS TO OBTAIN OTHER LOGISTICAL
EFFICIENCIES 346
(6) NON-COMPETE OBLIGATIONS COMBINED WITH EXCLUSIVE DISTRIBUTION . . 347
(7) NON-COMPETE OBLIGATIONS COMBINED WITH SELECTIVE DISTRIBUTION . . 348
(8) USE OF NON-COMPETE OBLIGATIONS IN INDUSTRIAL SUPPLY AGREEMENTS . 348
§3.48. SPECIFIC ISSUES RELATED TO TYING UNDER ARTICLE 81(3) 348
THE MOTOR VEHICLE BLOCK EXEMPTION 350
§3.49. INTRODUCTION 350
§3.50. APPLICABILITY OF THE MOTOR VEHICLE BLOCK EXEMPTION 351
(1) VERTICAL AGREEMENTS IN THE MOTOR VEHICLE SECTOR 351
(2) MARKET SHARE THRESHOLD 352
(3) INTELLECTUAL PROPERTY RIGHTS 353
(4) AGREEMENTS BETWEEN COMPETITORS 354
(5) AGREEMENTS CONCLUDED BY ASSOCIATIONS 354
§3.51. STRUCTURE OF THE MOTOR VEHICLE BLOCK EXEMPTION 355
§3.52. DE MINIMIS EXCEPTION 356
§3.53. CHOICE OF DISTRIBUTION SYSTEM 356
(1) EXCLUSIVE DISTRIBUTION 356
(2) SELECTIVE DISTRIBUTION 357
(3) CO-EXISTENCE OF EXCLUSIVE AND SELECTIVE DISTRIBUTION 361
§3.54. NON-COMPETE OBLIGATIONS 361
(1) MULTIBRANDING 362
(2) CONFUSION BETWEEN BRANDS 363
(3) REPAIR ACTIVITIES 364
(4) POST TERM NON-COMPETE OBLIGATIONS 364
(5) LEASING ACTIVITIES 365
§3.55. SALES AND PURCHASE TARGETS 365
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(1) SALES TARGETS 355
(2) PURCHASE TARGETS 366
§3.56. RESALE PRICE MAINTENANCE 367
§3.57. MARKET INTEGRATION 367
(1) CORRESPONDING MOTOR VEHICLES 369
(2) OBLIGATION TO PROVIDE REPAIR AND WARRANTY WORK 370
(3) SALES TO INTERMEDIARIES 371
§3.58, SERVICING AND REPAIRS WITHIN A VEHICLE MANUFACTURER'S NETWORK 372
(1) BREAKING THE SALES-SERVICE LINK 372
(2) AUTHORIZED AFTER-SALES NETWORK 373
(3) SUBCONTRACTING OF SERVICE OBLIGATIONS 373
§3.59. THE SUPPLY OF SPARE PARTS 374
(1) PURCHASE RESTRICTIONS 375
(2) RIGHTS OF MANUFACTURERS OF ORIGINAL SPARE PARTS 376
(3) SPARE PARTS RESELLERS 377
§3.60. INDEPENDENT REPAIRERS 377
(1) TECHNICAL INFORMATION 377
(2) SUPPLY OF SPARE PARTS TO INDEPENDENT REPAIRERS 378
(3) ROUTINE MAINTENANCE 379
§3.61. GENERAL CONDITIONS ON CONTRACTUAL PROTECTION 379
(1) RIGHT OF ASSIGNMENT 379
(2) DURATION AND TERMINATION OF AGREEMENTS 380
(3) DISPUTE RESOLUTION 381
§3.62. WITHDRAWAL OF THE BENEFIT OF THE EXEMPTION 382
4. HORIZONTAL AGREEMENTS: CARTELS 385
INTRODUCTION 385
APPLICATION OF ARTICLE 81(1) TO CARTELS 386
RESTRICTION OF COMPETITION THROUGH CARTELS 388
§4.1. PRICING PRACTICES 388
(1) PRICE-FIXING AGREEMENTS 389
(2) PRICE DISCRIMINATION 399
(3) ANCILLARY AGREEMENTS 402
(4) PARALLEL PRICING BEHAVIOUR 404
(5) CARTELS AND ARTICLE 82 404
§4.2. MARKET-SHARING AGREEMENTS 406
(1) GEOGRAPHICAL MARKET-SHARING 407
(2) LIMITATION OF PRODUCTION OR SOURCES OF SUPPLY 413
(3) ALLOCATION OF CUSTOMERS AND/OR PRODUCTS 415
§4.3. COLLECTIVE BOYCOTTS
417
COMPETITION LAW OF THE EUROPEAN COMMUNITY
$4.4. EXCHANGE OF INFORMATION 420
(1) APPLICATION OF ARTICLE 81(1) 420
(2) MARKET STRUCTURE 422
(3) NATURE OF THE INFORMATION EXCHANGED 424
(4) EXCHANGE OF PRICE INFORMATION 428
(5) EXCHANGE OF INFORMATION ON PRODUCTION AND SALES 429
(6) EXCHANGE OF INFORMATION ON COSTS, INVESTMENTS AND CAPACITIES. . .
430
(7) EXCHANGE OF INFORMATION ON OR BETWEEN DISTRIBUTORS 431
(8) BUSINESS-TO-BUSINESS ELECTRONIC MARKETPLACES 431
(9) UK AGRICULTURAL TRACTOR REGISTRATION EXCHANGE 432
$4.5. TRADE ASSOCIATIONS, TRADE FAIRS AND EXHIBITIONS, EXCHANGES AND
AUCTIONS 434
(1) TRADE ASSOCIATIONS 434
(2) TRADE FAIRS AND EXHIBITIONS 443
(3) EXCHANGES 446
(4) AUCTIONS 448
STATE COMPULSION AS A DEFENCE FOR CARTEL ACTIVITY 449
EXEMPTION OF CARTELS IN CRISIS SITUATIONS 449
$4.6. INTRODUCTION 449
§4.7. ASSESSMENT OF CRISIS CARTELS 451
1I) SECTORAL RESTRUCTURING AGREEMENTS 454
(2) BILATERAL RESTRUCTURING AGREEMENTS 457
5. HORIZONTAL AGREEMENTS: COOPERATION AGREEMENTS . . 463
INTRODUCTION 463
§5.1. OVERVIEW 463
DEFINITION OF HORIZONTAL COOPERATION AGREEMENTS
AND THE SCOPE OF THIS CHAPTER 464
$5.2. SCOPE OF THE HORIZONTAL GUIDELINES 464
$5.3. DEFINITION OF "HORIZONTAL" COOPERATION AGREEMENTS 465
$5.4. THE STANDARD OF LEGALITY: ARTICLE 81 OR THE MERGER REGULATION 466
GENERAL OVERVIEW OF THE APPLICATION OF ARTICLE 81 AND
THE HORIZONTAL GUIDELINES TO HORIZONTAL COOPERATION
AGREEMENTS 466
$5.5. OVERVIEW 466
$5.6. APPLICATION OF ARTICLE 81(1) TO HORIZONTAL COOPERATION AGREEMENTS.
. . 467
(1) APPRECIABLE RESTRICTION OF COMPETITION 467
(2) LIKELY TO AFFECT TRADE BETWEEN THE MEMBER STATES 479
$5.7. EXEMPTION: APPLICATION OF ARTICLE 81(3) TO HORIZONTAL COOPERATION
AGREEMENTS 479
TABLE OF CONTENTS
(1) ECONOMIC BENEFITS 480
(2) FAIR SHARE FOR CONSUMERS 481
(3) INDISPENSABILITY 482
(4) NO ELIMINATION OF COMPETITION 483
INTRODUCTION TO THE REMAINDER OF THIS CHAPTER 484
§5.8. SCOPE 484
§5.9. LOCATING THE APPLICABLE SECTION OF THIS CHAPTER 485
§5.10. CENTRE OF GRAVITY TEST 485
§5.11. RULES APPLICABLE TO STRATEGIC ALLIANCES 486
RESEARCH AND DEVELOPMENT AGREEMENTS 487
§5.12. INTRODUCTION 487
§5.13. ARTICLE 81(1) 487
(1) AGREEMENTS THAT GENERALLY DO NOT CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 488
(2) AGREEMENTS THAT ALMOST ALWAYS CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 490
(3) FACTORS USED TO DETERMINE WHETHER R&D AGREEMENTS
CONSTITUTE A RESTRICTION OR DISTORTION OF COMPETITION UNDER
ARTICLE 81(1) 491
(4) CONCLUSION 494
§5.14. R&D AGREEMENTS BLOCK EXEMPTION 494
(1) PREREQUISITES FOR THE GRANT OF THE EXEMPTION 494
(2) THRESHOLD CONDITIONS FOR EXEMPTION 496
(3) MARKET SHARE THRESHOLD AND DURATION OF EXEMPTION 498
(4) HARDCORE RESTRICTIONS 501
(5) SCOPE OF THE EXEMPTION - ANCILLARY RESTRICTIONS COVERED 505
(6) WITHDRAWAL OF THE EXEMPTION 505
§5.15. ARTICLE 81(3) 506
(1) CREATION OF BENEFITS THAT ARE PASSED ON TO CONSUMERS 506
(2) INDISPENSABILITY 507
(3) NO ELIMINATION OF COMPETITION 508
(4) TIME OF THE ASSESSMENT AND DURATION OF THE INDIVIDUAL EXEMPTION 509
JOINT PRODUCTION/SPECIALIZATION AGREEMENTS 509
§5.16. INTRODUCTION
5
^
§5.17. APPLICABLE RULES FOR SUBCONTRACTING AGREEMENTS 510
§5.18. ARTICLE 81(1)
51
*
(1) AGREEMENTS THAT GENERALLY DO NOT CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 512
(2) AGREEMENTS THAT ALMOST ALWAYS CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 514
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(3) FACTORS USED TO DETERMINE WHETHER JOINT PRODUCTION
AGREEMENTS CONSTITUTE A RESTRICTION OR DISTORTION OF COMPETITION
UNDER ARTICLE 81(1) 514
(4) CONCLUSION 517
§5.19. SPECIALIZATION AGREEMENTS BLOCK EXEMPTION 517
(1) PREREQUISITES FOR THE GRANT OF THE EXEMPTION 518
(2) MARKET SHARE THRESHOLD AND DURATION OF EXEMPTION 519
(3) HARDCORE RESTRICTIONS 520
(4) SCOPE OF THE EXEMPTION - ANCILLARY RESTRICTIONS COVERED 521
(5) WITHDRAWAL OF THE EXEMPTION 521
§5.20. ARTICLE 81(3) 522
(1) CREATION OF BENEFITS THAT ARE PASSED ON TO CONSUMERS 522
(2) INDISPENSABILITY 523
(3) NO ELIMINATION OF COMPETITION 524
PURCHASING AGREEMENTS 524
§5.21. INTRODUCTION 524
(1) DEFINITION AND SCOPE 524
(2) RELEVANT MARKETS 525
§5.22. ARTICLE 81(1) 525
(1) ASSESSMENT UNDER THE HORIZONTAL GUIDELINES 525
(2) ASSESSMENT UNDER THE DE MINIMIS NOTICE 532
§5.23. ARTICLE 81(3) 532
(1) CREATION OF BENEFITS THAT ARE PASSED ON TO CONSUMERS 533
(2) INDISPENSABILITY 533
(3) NO ELIMINATION OF COMPETITION 535
COMMERCIALIZATION AGREEMENTS 536
§5.24. INTRODUCTION AND SCOPE 536
(1) RELATIONSHIP BETWEEN THE HORIZONTAL GUIDELINES AND THE
VERTICAL AGREEMENTS BLOCK EXEMPTION AND VERTICAL
GUIDELINES 536
(2) "CENTRE OF GRAVITY' TEST 537
(3) RELEVANT MARKETS TO BE ASSESSED 537
§5.25. ARTICLE 81(1) 538
(1) ASSESSMENT UNDER THE HORIZONTAL GUIDELINES 538
(2) ASSESSMENT UNDER THE DE MINIMIS NOTICE 543
§5.26. ARTICLE 81(3) 544
(1) CREATION OF BENEFITS THAT ARE PASSED ON TO CONSUMERS 544
(2) INDISPENSABILITY 546
(3) NO ELIMINATION OF COMPETITION 546
§5.27. SPECIFIC TYPES OF COMMERCIALIZATION AGREEMENTS 546
TABLE OF CONTENTS
(1) AGREEMENTS INVOLVING THE APPOINTMENT OF COMPETITORS AS
DISTRIBUTORS 545
(2) AGREEMENTS INVOLVING THE CREATION OF A JOINT DISTRIBUTION
COMPANY WITHOUT INVOLVING THE JOINT FIXING OF PRICES 549
(3) AGREEMENTS INVOLVING THE JOINT FIXING OF PRICES 551
(4) AGREEMENTS INVOLVING COMMON BRANDING AND/OR JOINT
ADVERTISING 553
STANDARDIZATION AGREEMENTS 554
§5.28. INTRODUCTION 554
(1) DEFINITION 554
(2) RELEVANT MARKETS 556
§5.29. ARTICLE 81(1) 556
(1) AGREEMENTS THAT GENERALLY DO NOT CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 557
(2) AGREEMENTS THAT ALMOST ALWAYS CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 558
(3) AGREEMENTS THAT MAY CONSTITUTE A RESTRICTION OR DISTORTION OF
COMPETITION UNDER ARTICLE 81(1) 559
§5.30. ARTICLE 81(3) 561
(1) CREATION OF BENEFITS THAT ARE PASSED ON TO CONSUMERS 562
(2) INDISPENSABILITY 564
(3) NO ELIMINATION OF COMPETITION 565
ENVIRONMENTAL AGREEMENTS 566
§5.31. INTRODUCTION 566
(1) DEFINITION 566
(2) RELEVANT MARKETS 567
§5.32. ARTICLE 81(1) 568
(1) AGREEMENTS THAT GENERALLY DO NOT CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 569
(2) AGREEMENTS THAT ALMOST ALWAYS CONSTITUTE A RESTRICTION OR
DISTORTION OF COMPETITION UNDER ARTICLE 81(1) 574
(3) AGREEMENTS THAT MAY CONSTITUTE A RESTRICTION OR DISTORTION OF
COMPETITION UNDER ARTICLE 81(1) 577
§5.33. ARTICLE 81(3)
578
(1) CREATION OF BENEFITS THAT ARE PASSED ON TO CONSUMERS 579
(2) INDISPENSABILITY
58
(3) NO ELIMINATION OF COMPETITION 581
6. INTELLECTUAL PROPERTY 583
INTRODUCTION
583
COMPETITION LAW OF THE EUROPEAN COMMUNITY
RESTRICTIONS ON ENFORCEMENT OF INDUSTRIAL AND
COMMERCIAL PROPERTY RIGHTS 585
§6.1. INTRODUCTION 585
§6.2. ARTICLES 81 AND 82 AS A DEFENCE AGAINST THE ENFORCEMENT OF
INDUSTRIAL AND INTELLECTUAL PROPERTY RIGHTS 585
§6.3. THE EXHAUSTION PRINCIPLE 589
§6.4. TRADE WITHIN THE EUROPEAN ECONOMIC AREA 590
(1) GENERAL PRINCIPLES 591
(2) COPYRIGHT: MECHANICAL RIGHTS 592
(3) COPYRIGHT: PERFORMING RIGHTS 593
(4) COPYRIGHT: RENTAL RIGHTS 594
(5) COPYRIGHT: SUPPLEMENTARY ROYALTIES 595
(6) COPYRIGHT: COMPUTER PROGRAMMES 595
(7) TRADE MARKS: EXHAUSTION AND THE TRADEMARK DIRECTIVE 596
(8) TRADE MARKS: REPACKAGING AND PARALLEL TRADE OF TRADE MARKED
GOODS 598
(9) TRADE MARKS: REMOVING LABELS FROM TRADE MARKED GOODS 601
(10) TRADE MARKS: THE 'COMMON OWNERSHIP' DOCTRINE AND
ASSIGNMENT OF RIGHTS 602
(11) PATENTS: EXHAUSTION BY LICENCE 605
(12) PATENTS: EXHAUSTION DESPITE LACK OF PROTECTION IN MEMBER
STATE OF EXPORT 605
(13) PATENTS: COMPULSORY LICENCE IN MEMBER STATE OF EXPORT 607
(14) GEOGRAPHIC SCOPE OF THE EXHAUSTION PRINCIPLE 607
(15) NATIONAL LEGISLATION CONTRARY TO ARTICLE 30 609
§6.5. IMPORTS OF PHARMACEUTICAL PRODUCTS FROM COUNTRIES THAT ACCEDED TO
THE EU ON 1 MAY 2004 611
(1) EXCEPTION TO THE EXHAUSTION RULE FOR CERTAIN PHARMACEUTICAL
PRODUCTS IMPORTED FROM ACCEDING COUNTRIES: THE 'SPECIFIC
MECHANISM' 611
(2) ONE-MONTH NOTICE REQUIREMENT FOR PARALLEL IMPORTERS 611
§6.6. IMPORTS FROM NON-EEA COUNTRIES 612
(1) TRADE MARKED GOODS: NO INTERNATIONAL EXHAUSTION OF RIGHTS 612
(2) OTHER FORMS OF INTELLECTUAL PROPERTY: RULE ON INTERNATIONAL
EXHAUSTION DEPENDS ON WHETHER THE COMMUNITY HAS ADOPTED
HARMONIZING MEASURES 619
TECHNOLOGY TRANSFER 619
§6.7. REGULATION OF PATENT, KNOW-HOW, AND SOFTWARE COPYRIGHT LICENCES .
. . 619
§6.8. CATEGORIES OF LICENSING AGREEMENTS 621
TABLE OF CONTENTS
(1) AGREEMENTS FALLING OUTSIDE ARTICLE 81(1), INCLUDING DE MINIMIS
AGREEMENTS 5?2
(2) AGREEMENTS BENEFITING FROM THE TRANSITIONAL PERIOD UNTIL
31 MARCH 2006 623
(3) AGREEMENTS EXEMPTED BY THE CURRENT TECHNOLOGY TRANSFER
BLOCK EXEMPTION 623
(4) AGREEMENTS ELIGIBLE FOR AN INDIVIDUAL EXEMPTION UNDER
ARTICLE 81(3) 623
(5) AGREEMENTS FALLING WITHIN ARTICLE 81(1) THAT DO NOT QUALIFY
FOR AN EXEMPTION 624
§6.9. APPLICATION OF ARTICLE 82 624
§6.10. RELATIONSHIP BETWEEN THE TECHNOLOGY TRANSFER BLOCK EXEMPTION
AND OTHER BLOCK EXEMPTIONS 625
(1) THE TECHNOLOGY TRANSFER BLOCK EXEMPTION AND THE VERTICAL
AGREEMENTS BLOCK EXEMPTION 625
(2) THE TECHNOLOGY TRANSFER BLOCK EEXEMPTION AND THE
SPECIALIZATION AND R&D AGREEMENTS BLOCK EXEMPTIONS 626
§6.11. SCOPE OF THE FORMER TECHNOLOGY TRANSFER BLOCK EXEMPTION:
TYPES OF AGREEMENTS COVERED 627
(1) THRESHOLD REQUIREMENTS 627
(2) AGREEMENTS SPECIFICALLY EXCLUDED FROM THE FORMER TECHNOLOGY
TRANSFER BLOCK EXEMPTION 628
§6.12. TREATMENT UNDER THE FORMER TECHNOLOGY TRANSFER BLOCK EXEMPTION
OF TYPICAL RESTRICTIONS FOUND IN PATENT AND KNOW-HOW LICENCES 629
§6.13. EXCLUSIVITY 630
§6.14. RESTRICTIONS ON LICENSEES' ACTIVITIES OUTSIDE THE LICENSED
TERRITORY 631
(1) OBLIGATION ON LICENSEE NOT TO EXPLOIT THE TECHNOLOGY IN
LICENSOR'S TERRITORY 631
(2) OBLIGATION NOT TO USE OR MAKE THE LICENSED PRODUCT IN OTHER
LICENSEES' TERRITORIES 631
(3) BANS ON ACTIVE SALES BY LICENSEES IN OTHER LICENSEES' TERRITORIES
. 632
(4) RESTRICTIONS LIMITING PASSIVE SALES BY LICENSEES IN OTHER
LICENSEES' TERRITORIES AND LIMITING PARALLEL IMPORTS 633
§6.15. USE OF TRADE MARK AND GET-UP 633
§6.16. TYING AND MINIMUM QUALITY OBLIGATIONS 634
§6.17. FIELD OF USE RESTRICTIONS 635
(1) FIELD OF USE RESTRICTIONS UNDER THE OLD TECHNOLOGY TRANSFER
BLOCK EXEMPTION 635
(2) THE MEANING OF 'TECHNICAL FIELD OF APPLICATION' 636
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(3) NO EXEMPTION FOR MARKET SHARING ARRANGEMENTS BETWEEN
COMPETITORS 637
$6.18. NO-CHALLENGE CLAUSES AND RESERVATIONS TO TERMINATE 638
(1) NO-CHALLENGE CLAUSES 638
(2) RESERVATIONS TO TERMINATE 639
§6.19. GRANTBACKS AND ASSIGNMENTS OF IMPROVEMENTS 640
(1) GRANTBACKS 640
(2) ASSIGNMENTS OF IMPROVEMENTS 641
§6.20. NON-COMPETE OBLIGATIONS 641
(1) STANDARD NON-COMPETE OBLIGATIONS 641
(2) BEST ENDEAVOURS CLAUSES 641
(3) RESERVATIONS TO TERMINATE IN CASE OF COMPETITION 642
(4) MINIMUM ROYALTIES OR OUTPUT AS A FORM OF NON-COMPETE 642
§6.21. PROHIBITIONS AGAINST SUB-LICENSING 643
§6.22. PRICE RESTRICTIONS 643
§6.23. CUSTOMER RESTRICTIONS 644
§6.24. MINIMUM AND MAXIMUM OUTPUT RESTRICTIONS 645
(1) MINIMUM OUTPUT RESTRICTIONS 645
(2) MAXIMUM OUTPUT RESTRICTIONS 645
§6.25. ROYALTY OBLIGATIONS 646
(1) MINIMUM ROYALTIES 646
(2) ROYALTIES ON PRODUCTS NOT COVERED BY THE LICENSED TECHNOLOGY
AND ROYALTIES ON COMPLEX PRODUCTS INCORPORATING THE LICENSED
TECHNOLOGY AS AN INPUT 646
(3) ROYALTIES PAID AFTER THE LICENSED TECHNOLOGY FALLS INTO THE PUBLIC
DOMAIN 647
§6.26. POST-TERM USE RESTRICTIONS 648
§6.27. OBLIGATIONS TO PRESERVE THE SECRECY OF THE KNOW-HOW 648
§6.28. DURATION AND AUTOMATIC PROLONGATION 649
§6.29. OTHER CLAUSES 649
(1) PROSECUTING CLAIMS (OR ASSISTING THE LICENSOR IN PROSECUTING
CLAIMS) OF MISAPPROPRIATION OR INFRINGEMENT 649
(2) MINIMUM QUALITY SPECIFICATIONS 650
(3) MOST FAVOURED LICENSEE CLAUSES 651
§6.30. CLAUSES WHICH MAY REQUIRE INDIVIDUAL EXEMPTION UNDER ARTICLE
81(3) . 651
(1) AGREEMENTS BETWEEN MEMBERS OF A TECHNOLOGY POOL 651
(2) AGREEMENTS BETWEEN COMPETING UNDERTAKINGS HOLDING
INTERESTS IN A JOINT VENTURE OR BETWEEN ONE OF THEM AND THE
JOINT VENTURE 654
(3) AGREEMENTS INVOLVING CROSS-LICENCES 656
TABLE OF CONTENTS
(4) AGREEMENTS CONTAINING ANCILLARY PROVISIONS RELATING TO
INTELLECTUAL PROPERTY RIGHTS OTHER THAN PATENTS 657
(5) AGREEMENTS ENTERED INTO SOLELY FOR THE PURPOSE OF SALE 659
§6.31. THE TECHNOLOGY TRANSFER BLOCK EXEMPTION: THE CURRENT TECHNOLOGY
TRANSFER REGIME 559
(1) TRANSITIONAL PERIODS: AGREEMENTS THAT WERE COVERED UNDER THE
FORMER TECHNOLOGY TRANSFER BLOCK EXEMPTION AND AGREEMENTS
REQUIRING AN EXEMPTION BY REASON OF THE ENLARGEMENT OF THE EU . 660
(2) UNDERLYING ASSUMPTIONS AND PRINCIPAL FEATURES OF THE
TECHNOLOGY TRANSFER BLOCK EXEMPTION 661
(3) SCOPE OF THE BLOCK EXEMPTION 662
(4) THE NEW MARKET SHARE THRESHOLDS 666
(5) DYNAMIC MARKETS WHERE MARKET SHARES ARE NOT GOOD
INDICATORS OF MARKET POWER 669
(6) HARDCORE RESTRICTIONS 669
(7) EXCLUDED RESTRICTIONS 675
(8) WITHDRAWAL AND NON-APPLICATION OF THE BLOCK EXEMPTION 677
§6.32. TREATMENT OF SPECIFIC LICENSING PROVISIONS UNDER THE TECHNOLOGY
TRANSFER GUIDELINES 678
(1) ROYALTY OBLIGATIONS 678
(2) EXCLUSIVE AND SOLE LICENSING 681
(3) TERRITORIAL AND CUSTOMER RESTRICTIONS 683
(4) OUTPUT RESTRICTIONS 685
(5) FIELD OF USE RESTRICTIONS 687
(6) CAPTIVE USE RESTRICTIONS 691
(7) TYING OBLIGATIONS 692
(8) NON-COMPETE OBLIGATIONS 694
(9) EXCLUSIVE GRANTBACKS OF SEVERABLE IMPROVEMENTS AND NEW
APPLICATIONS 696
§6.33. SETTLEMENT AND NON-ASSERTION AGREEMENTS 696
(1) GENERAL PRINCIPLES 696
(2) APPLICATION OF THE TECHNOLOGY TRANSFER BLOCK EXEMPTION TO
SETTLEMENT AND NON-ASSERTION AGREEMENTS 697
(3) COMPETITIVE ANALYSIS OF SETTLEMENT AND NON-ASSERTION
/-GO
AGREEMENTS
(4) AGREEMENTS CONCERNING FUTURE DEVELOPMENTS 698
(5) NO-CHALLENGE OBLIGATIONS IN SETTLEMENT AND NON-ASSERTION
699
AGREEMENTS
§6.34. TECHNOLOGY POOLS
6
"
(1) GENERAL PRINCIPLES
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(2) COMPLEMENTARY VERSUS SUBSTITUTE TECHNOLOGIES COMPRISED IN
THE POOL 700
(3) ESSENTIAL VERSUS NON-ESSENTIAL TECHNOLOGIES COMPRISED IN THE POOL
701
(4) ASSESSMENT OF INDIVIDUAL RESTRAINTS RELATED TO THE POOL 703
(5) POOL MANAGEMENT AND INSTITUTIONAL ARRANGEMENTS 704
LICENCES OF INDUSTRIAL OR COMMERCIAL PROPERTY RIGHTS
OTHER THAN PATENTS, KNOW-HOW, AND ANCILLARY
LICENCES 705
§6.35. INTRODUCTION 705
§6.36. TRADE MARK LICENCES 705
(1) GENERAL REMARKS REGARDING TERRITORIAL RESTRAINTS 706
(2) THE CAMPARI CASE 707
(3) THE MOOSEHEAD-WHITBREAD CASE 708
(4) TRADE MARKS UNDER THE TECHNOLOGY TRANSFER BLOCK EXEMPTION. . 709
(5) COUNCIL DIRECTIVE 89/104 ON THE APPROXIMATION OF THE LAWS
OF THE MEMBER STATES RELATING TO TRADE MARKS 709
(6) COUNCIL REGULATION 40/94 ON THE COMMUNITY TRADE MARK 710
§6.37. COPYRIGHT LICENCES 710
(1) EXCLUSIVE COPYRIGHT LICENCES 711
(2) FIELD OF USE RESTRICTIONS IN COPYRIGHT LICENCES 712
(3) OTHER TYPICAL RESTRICTIVE CLAUSES IN COPYRIGHT LICENSING AGREEMENTS
714
(4) COPYRIGHT COLLECTING SOCIETIES 717
(5) ONE-STOP, MULTI-TERRITORIAL COPYRIGHT LICENCES FOR SIMULCASTING
OVER THE INTERNET 718
(6) COUNCIL DIRECTIVE 91/250 ON THE LEGAL PROTECTION OF COMPUTER
PROGRAMS 719
§6.38. SOFTWARE LICENSING 719
§6.39. LICENCES OF PLANT BREEDERS' RIGHTS 721
TRADE MARK DELIMITATION AGREEMENTS 723
§6.40. INTRODUCTION 723
§6.41. AGREEMENTS NOT TO USE TRADE MARKS IN CERTAIN MEMBER STATES 724
§6.42. UNHAMPERED MOVEMENT OF GOODS BEARING THE TRADE MARK 726
7. CONTROL OF MERGERS, ACQUISITIONS AND CERTAIN
JOINT VENTURES 729
INTRODUCTION 729
§7.1. OVERVIEW 729
(1) THE GENESIS OF THE EC MERGER REGULATION 730
(2) THE 1997 AMENDMENTS 732
(3) THE 2002 2003 MERGER REVIEW 732
TABLE OF CONTENTS
§7.2. THE 2004 MERGER REGULATION 733
(1) A NEW SUBSTANTIVE TEST 733
(2) ALLOCATING JURISDICTION 735
(3) MORE FLEXIBILITY IN THE TIMING OF NOTIFICATIONS 736
(4) STOPPING THE CLOCK 736
(5) THE COMMISSION'S FACT-FINDING AND FINING POWERS 737
§7.3. NON-LEGISLATIVE MEASURES INTENDED TO IMPROVE COMMISSION PRACTICE.
. 738
(1) PEER REVIEW PANEL 738
(2) EARLIER ACCESS TO THE FILE 738
(3) OPPORTUNITIES TO MEET WITH 'COMPLAINING' THIRD PARTIES 739
(4) 'STATE OF PLAY' MEETINGS 739
(5) ADDITION OF NEW PERSONNEL 739
§7.4. NEW GUIDELINES ON HORIZONTAL MERGERS 740
(1) RELIANCE ON MARKET SHARES AND CONCENTRATION LEVELS 740
(2) CLARIFICATION OF 'COORDINATED EFFECTS' 742
(3) INTRODUCTION OF 'UNILATERAL EFFECTS' 743
(4) EFFICIENCIES AND OTHER COUNTERVAILING FACTORS 745
JURISDICTION OF THE COMMISSION TO REVIEW MERGERS 746
§7.5. OVERVIEW: CONCENTRATIONS WITH COMMUNITY DIMENSION 746
(1) THE CONCEPT OF A CONCENTRATION 746
(2) COMMUNITY DIMENSION 752
(3) STATISTICS 755
§7.6. CONCENTRATIONS FALLING OUTSIDE THE THRESHOLDS 755
§7.7. EXCEPTIONS TO THE ONE-STOP SHOP PRINCIPLE 756
(1) PROTECTION OF LEGITIMATE INTERESTS 756
(2) REFERRALS FROM THE COMMISSION TO ONE OR MORE MEMBER STATES . 756
(3) REFERRALS FROM THREE OR MORE MEMBER STATES TO THE COMMISSION 758
(4) REFERRALS BY A MEMBER STATE TO THE COMMISSION 758
§7.8. IDENTIFYING THE ENTITIES WHOSE TURNOVER MUST BE CONSIDERED IN
ASSESSING 'COMMUNITY DIMENSION' 759
(1) IDENTIFYING THE 'UNDERTAKINGS CONCERNED' - OVERVIEW 760
(2) UNDERTAKINGS CONCERNED IN THE CASE OF MERGERS 761
(3) UNDERTAKINGS CONCERNED IN THE CASE OF ACQUISITIONS OF SOLE
CONTROL
761
(4) UNDERTAKINGS CONCERNED IN THE CASE OF ACQUISITIONS OF JOINT
CONTROL
762
(5) UNDERTAKINGS CONCERNED IN THE CASE OF ACQUISITIONS OF CONTROL BY
A JOINT VENTURE
(6) UNDERTAKINGS CONCERNED IN THE CASE OF CHANGES FROM JOINT TO
SOLE CONTROL
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(7) UNDERTAKINGS CONCERNED IN THE CASE OF DE-MERGERS (BREAK
UP OF COMPANIES) 764
(8) UNDERTAKINGS CONCERNED IN THE CASE OF EXCHANGE OF ASSETS ("ASSET
SWAPS') AND IN THE CONTEXT OF OUTSOURCING AGREEMENTS 764
§7.9. THE DEFINITION OF 'TURNOVER' 765
(1) BASICS OF CALCULATING TURNOVER 765
(2) NET TURNOVER 766
(3) GROUP TURNOVER 766
(4) DEDUCTION OF INTERNAL' TURNOVER 769
§7.10. GEOGRAPHICAL ALLOCATION OF TURNOVER 769
§7.11. SPECIAL RULES FOR FINANCIAL INSTITUTIONS AND INSURANCE
UNDERTAKINGS . . . 772
(1) CREDIT AND OTHER FINANCIAL INSTITUTIONS 772
(2) INSURANCE UNDERTAKINGS 773
(3) MIXED GROUPS 774
§7.12. CALCULATING TURNOVER IN THE CASE OF ACQUISITION OF ASSETS WITHOUT
SALES 774
§7.13. EXTRATERRITORIAL APPLICATION OF THE MERGER REGULATION 775
(1) THE RULE 775
(2) CASE LAW 775
SUBSTANTIVE REVIEW BY THE COMMISSION 777
§7.14. SECTOR-SPECIFIC ORGANIZATION OF MERGER CONTROL 778
§7.15. INVESTIGATIVE POWERS 779
§7.16. DEFINING THE RELEVANT MARKETS 779
(1) RELEVANT MARKET DEFINITION 780
(2) DEFINING RELEVANT MARKETS IN PRACTICE 795
§7.17. TEST OF COMPATIBILITY WITH THE COMMON MARKET: SIGNIFICANT
IMPEDIMENT OF EFFECTIVE COMPETITION, IN PARTICULAR AS A RESULT OF THE
CREATION OR STRENGTHENING OF A DOMINANT POSITION 795
(1) CREATION OR STRENGTHENING OF A DOMINANT POSITION 797
(2) FACTORS CONSIDERED IN ASSESSING DOMINANCE IN HORIZONTAL MERGERS 797
§7.18. VERTICAL MERGERS 813
(1) INTRODUCTION 813
(2) ENTRY BARRIERS AND FORECLOSURE 813
(3) OTHER EXAMPLES 815
§7 19. CONGLOMERATE MERGERS AND PORTFOLIO POWER 818
§7 20. COLLECTIVE DOMINANCE/COORDINATED EFFECTS 819
(1) NESTLE: PERRIER 819
(2) KALI UND SAL: 821
(3) GENCOR-LONRHO 822
(4) ENSO STORA 823
XXVILL
TABLE OF CONTENTS
(5) AIRTOURS
(6) UPM-KYMMENEJMORGAN ADHESIVES . 825
(7) ANALYSIS - KEY FACTORS CONSIDERED BY THE COMMISSION IN
ASSESSING THE RISK OF COLLECTIVE DOMINANCE 826
§7.21. ARTICLE 2(4) AND 2(5): COORDINATIVE EFFECTS OF FULL-FUNCTION
JOINT
VENTURES ^3 J
(1) OVERVIEW G3L
(2) CASES WHERE ARTICLE 2(4) AND 2(5) APPLY . 832
(3) SUBSTANTIVE ASSESSMENT UNDER ARTICLE 2(4) AND 2(5) 833
§7.22. ANCILLARY RESTRAINTS 837
(1) INTRODUCTION 837
(2) REQUIREMENTS FOR RESTRICTIONS TO BE CONSIDERED ANCILLARY 838
(3) COMMON TYPES OF ANCILLARY RESTRAINTS AS ADDRESSED IN THE 2001
NOTICE ON ANCILLARY RESTRAINTS 841
THE PROCESS OF NOTIFYING A CONCENTRATION TO THE
COMMISSION 849
§7.23. FORMALITIES 849
§7.24. TIMING 850
§7.25. COMPLETING FORM CO 851
(1) OVERVIEW 851
(2) INFORMATION THAT MUST BE PROVIDED IN FORM CO 851
(3) COPIES THAT MUST BE PROVIDED 853
(4) CORRECT AND COMPLETE INFORMATION 853
§7.26. SIMPLIFIED PROCEDURE 853
§7.27. PRE-NOTIFICATION CONSULTATIONS 855
§7.28. SUSPENSION REQUIREMENT 855
(1) SUSPENSION PERIOD 855
(2) WAIVER OF SUSPENSION REQUIREMENT 856
(3) CONSEQUENCES OF CONTRAVENING THE SUSPENSION REQUIREMENT 856
(4) CONSEQUENCES OF FAILING TO NOTIFY AND PROVIDING INCORRECT/
MISLEADING INFORMATION 857
PROCEDURE FOR REVIEW OF CONCENTRATIONS AND
APPLICABLE DEADLINES 857
§7.29. FIRST PHASE TIMETABLE 857
(1) TYPES OF FIRST PHASE DECISIONS 857
(2) PUBLICATION OF NOTICE OF PRIOR NOTIFICATION 858
(3) COMMUNICATION WITH MEMBER STATES IN THE FIRST PHASE 859
(4) NO LONGER A POSSIBILITY OF CONVERSION OF NOTIFICATION . . *
859
(5) VERIFICATION, REQUESTS FOR INFORMATION AND INVESTIGATION IN
THE FIRST PHASE
860
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(6) RIGHT TO BE HEARD IN THE FIRST PHASE 863
(7) INTER-SERVICE MEETINGS IN THE FIRST PHASE 863
(8) MODIFICATION OF THE OPERATION, CONDITIONS AND OBLIGATIONS IN
THE FIRST PHASE 864
(9) DEADLINE FOR REFERRAL TO MEMBER STATES 865
(10) PUBLICATION OF PHASE I DECISIONS 865
(11) REVOCATION OF PHASE I DECISIONS 865
§7.30. SECOND PHASE TIMETABLE 866
(1) REQUESTS FOR INFORMATION AND INVESTIGATIONS 866
(2) SUSPENSION OF 90-DAY TIME LIMIT 867
(3) STATEMENT OF OBJECTIONS 867
(4) ACCESS TO FILE 868
(5) RIGHT OF REPLY TO STATEMENT OF OBJECTIONS 870
(6) ORAL HEARING 871
(7) COMMITMENTS AND UNDERTAKINGS 873
(8) DRAFT DECISION 873
(9) CONSULTATION WITH ADVISORY COMMITTEE 874
(10) DECISIONS ENDING A PHASE II INVESTIGATION 874
(11) PUBLICATION OF PHASE II DECISIONS 875
(12) REVOCATION OF PHASE II DECISIONS 876
§7.31. REFERRALS BETWEEN THE COMMISSION AND THE MEMBER STATES 876
§7.32. COOPERATION BETWEEN THE COMMISSION AND THE MEMBER STATES 876
(1) REQUIREMENT OF COOPERATION UNDER THE MERGER REGULATION 876
(2) REQUESTS FOR INFORMATION AND INVESTIGATIONS 877
(3) ADVISORY COMMITTEE ON CONCENTRATIONS 877
(4) IMPORTANCE OF COOPERATION 878
§7.33. INTERNATIONAL COOPERATION 878
(1) GENERAL INTRODUCTION 878
(2) EU-US COOPERATION 879
(3) EU COOPERATION WITH OTHER COUNTRIES 882
§7.34. REMEDIES 884
(1) STRUCTURAL V. BEHAVIOURAL COMMITMENTS 885
(2) TIMETABLE FOR COMMITMENTS 890
(3) ENFORCEABILITY OF COMMITMENTS 891
JUDICIAL REVIEW OF MERGER DECISIONS 892
§7.35. INTERIM RELIEF 893
(1) PRIMA FACIE CASE
(2) URGENCY
(3) BALANCE OF INTERESTS 895
§7.36. ACTS SUBJECT TO REVIEW 896
TABLE OF CONTENTS
§7.37. STANDING OF MERGING PARTIES 898
§7.38. STANDING OF THIRD PARTIES 898
(1) DIRECT CONCERN 899
(2) INDIVIDUAL CONCERN 900
§7.39. GROUNDS FOR REVIEW 901
§7.40. THE COURT'S ACCELERATED PROCEDURE 901
8. ABUSE OF A DOMINANT POSITION 903
INTRODUCTION 903
THE CONCEPT OF 'ABUSE' 903
§8.1. EXPLOITATIVE ABUSES AND EXCLUSIONARY ABUSES 904
§8.2. THE OBJECT OR EFFECT OF THE BEHAVIOUR AT ISSUE 905
§8.3. THE 'SPECIAL RESPONSIBILITY' OF DOMINANT FIRMS 905
§8.4. THE REQUIRED DEGREE OF LINKAGE BETWEEN THE DOMINATED MARKET
AND THE MARKET ON WHICH THE ABUSE OCCURS 906
§8.5. THE REQUIRED DEGREE OF LINKAGE BETWEEN THE DOMINANT UNDERTAKING
AND THE UNDERTAKING WHICH COMMITS THE ABUSE 906
§8.6. OBJECTIVE JUSTIFICATION 907
ABUSIVE PRACTICES 908
§8.7. PRICING PRACTICES 909
(1) CHARGING EXCESSIVE PRICES 909
(2) EXTRACTING EXCESSIVELY LOW PURCHASE PRICES 914
(3) PRICE DISCRIMINATION 914
(4) REBATE SCHEMES 922
(5) PREDATORY PRICING 934
§8.8. REFUSALS TO DEAL 940
(1) INTRODUCTION 940
(2) REFUSAL TO SUPPLY A COMPETITOR 941
(3) REFUSAL TO SUPPLY A NON-COMPETING CUSTOMER: UNITED BRANDS. . . . 947
(4) REFUSAL TO LICENSE 947
(5) ESSENTIAL FACILITIES 954
(6) JUSTIFICATIONS FOR REFUSALS TO DEAL 956
(7) REFUSAL TO PURCHASE 958
§8.9. DISCRIMINATION 959
(1) DISCRIMINATING BETWEEN NATIONALS OR RESIDENTS OF DIFFERENT
MEMBER STATES 959
(2) OTHER FORMS OF DISCRIMINATION 960
§8.10. TYING 962
(1) TYING MACHINES AND CONSUMABLES 963
(2) BUNDLING DIFFERENT PRODUCTS AND/OR SERVICES 967
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(3) OTHER METHODS OF TYING 968
S'N.L 1. UNFAIR TERMS AND CONDITIONS 969
(1) TETRA PAK 11 969
(2) COPYRIGHT MANAGEMENT SOCIETIES REQUIRING ASSIGNMENT OF
COPYRIGHT 970
(3) UNILATERAL PRICE-SETTING AND LEASE EXTENSIONS 971
(4) UNFAIR PRICING 971
$'N. 12. MISCELLANEOUS ABUSES 972
(1) EXCLUSIVE DEALING OBLIGATIONS 972
(2) ABUSIVE REGISTRATION OF TRADE MARKS 973
(3) RESTRICTIONS ON RESALES 974
(4) ABUSIVE LICENSING PRACTICES 974
(5) LIMITING MARKETS AND TECHNICAL DEVELOPMENT 976
(6) MARKET-SHARING AGREEMENTS 977
L
. SPATE INVOLVEMENT IN COMPETITION 979
INTRODUCTION '.'.'.'.'. 979
STATE MEASURES THAT MAY RENDER INEFFECTIVE
COMPETITION LAW APPLICABLE TO ENTERPRISES 980
$
9
-L- RELEVANT TREATY PROVISIONS: ARTICLES 10, 3(L)(G), 81 AND 82 980
$9.2. THE I 'AN EYCKE CASE LAW . 981
(1) INNO ' ' 981
(2) I 'AN EYCKE ' ' ' . 982
(3) OTHER CASES APPLYING THE INNO AND VAN EYCKE PRINCIPLES 983
(41 SUMMARY OF THE VAN EYCKE PRINCIPLES OF STATE LIABILITY 987
(?) THE LIMITS OF A MEMBER STATE'S OBLIGATION 987
U ) DIRECT EFFECT 990
^*ATI! MEASURES IN RELATION TO PUBLIC UNDERTAKINGS
* 11 H SPECIAL OR EXCLUSIVE RIGHTS (ARTICLE 86(1)) 991
*
V
INTRODUCTION 99]
$
L) 4
SCOPE OF ARTICLE 86(1) 99I
I) UNDERTAKINGS WITH SPECIAL OR EXCLUSIVE RIGHTS 991
* -) PUBLIC UNDERTAKINGS 993
*
X
MEASURES CONTRARY TO THE TREATY RULES 996
' I) GRANT OI~ RIGHT DISTINGUISHED FROM ITS EXERCISE 996
?) GRANT OF RIGHT IMPERMISSIBLE IN SOME CIRCUMSTANCES .998
*)
(
' EXEMPTIONS FROM THE APPLICATION OF ARTICLE 86(1) 1002
1 ROCEDURAL PROVISIONS ENABLING THE COMMISSION TO ENFORCE
ARTICLE 86( 1) (ARTICLE 86(3))
1002
TABLE OF CONTENTS
STATE MEASURES IN RELATION TO STATE MONOPOLIES
OF A COMMERCIAL CHARACTER 1004
§9.7. INTRODUCTION 1004
§9.8. ARTICLE 31 1004
(1) ARTICLE 31(1) 1004
(2) ARTICLE 31(2) 1008
(3) ARTICLE 31(3) 1008
UNDERTAKINGS ENTRUSTED WITH THE OPERATION OF
SERVICES OF GENERAL ECONOMIC INTEREST
(ARTICLE 86(2)) 1008
§9.9. INTRODUCTION 1008
§9.10. SCOPE OF ARTICLE 86(2) 1009
(1) ENTRUSTED UNDERTAKINGS 1010
(2) SERVICES OF GENERAL ECONOMIC INTEREST 1011
(3) REVENUE-PRODUCING MONOPOLIES 1013
§9.11. JUSTIFICATION FOR THE NON-APPLICATION OF THE COMPETITION RULES
1014
(1) OBSTRUCTION OF AN ENTRUSTED UNDERTAKING'S TASK TO PROVIDE
SERVICES OF GENERAL ECONOMIC INTEREST 1014
(2) APPLICATION OF EXEMPTION MUST NOT AFFECT TRADE TO AN EXTENT
CONTRARY TO THE COMMUNITY INTEREST 1018
10. PROCEDURE 1021
INTRODUCTION 1021
§10.1. RULES OF PROCEDURE GENERALLY 1021
§10.2. DRASTIC REFORM OF THE PROCEDURAL RULES 1022
(1) ABOLITION OF THE NOTIFICATION AND EXEMPTION SYSTEM 1024
(2) DECENTRALIZED APPLICATION OF ARTICLES 81 AND 82 1025
(3) CONCURRENT APPLICATION OF ARTICLES 81 AND 82 AND NATIONAL
COMPETITION LAW 1032
(4) TRANSITIONAL PROVISIONS 1033
(5) CHALLENGES AHEAD 1034
§10.3. NATURE OF COMMISSION PROCEEDINGS 1035
INVESTIGATIONS CONDUCTED AND INDIVIDUAL
MEASURES ADOPTED BY THE COMMISSION 1037
§10.4. DECISION-MAKING POWER OF THE COMMISSION 1037
§10.5. INFRINGEMENT PROCEEDINGS: OVERVIEW 1037
§10.6. OPENING OF INVESTIGATION 1038
(1) COMPLAINT 1038
(2) THREE-STAGE PROCEDURE FOR ASSESSING COMPLAINTS 1046
(3) PROCEDURAL RIGHTS OF COMPLAINANTS 1049
COMPETITION LAW OF THE EUROPEAN COMMUNITY
(4) OTHER EVENTS TRIGGERING AN INVESTIGATION 1050
§10.7. DISCOVERY PROCEDURE 1050
§10.8. DISCOVERY: REQUESTS FOR INFORMATION 1051
(1) PROCEDURE 1051
(2) 'NECESSARY' INFORMATION 1052
(3) ACTIVE COOPERATION 1053
(4) INCORRECT INFORMATION 1054
(5) TERRITORIAL REACH 1055
§10.9. DISCOVERY: SECTORAL INQUIRIES 1056
§10.10. DISCOVERY: ON-THE-SPOT INVESTIGATIONS 1056
(1) COMMISSION'S MEMORANDUM 1057
(2) SUBJECT MATTER OF THE INQUIRY 1059
(3) RIGHT OF ENTRY 1061
(4) RIGHT TO SEARCH 1062
(5) DUTY TO ASSIST 1064
(6) ORAL EXPLANATIONS 1065
(7) COMPANY REPRESENTATIVE 1065
(8) INTERVIEWS 1067
(9) PREPARATION 1068
(10) DISCOVERY: LIMITATIONS 1069
§10.11. DISCOVERY: COOPERATION 1078
§10.12. DISCOVERY: ACCESS TO THE FILE 1079
(1) DEFENDANTS 1079
(2) COMPLAINANTS AND THIRD PARTIES 1086
§10.13. INITIATION OF PROCEDURE 1086
§10.14. STATEMENT OF OBJECTIONS 1087
§10.15. HEARING 1089
(1) THE REGULATION ON PROCEDURE 1089
(2) LEGAL REPRESENTATION 1091
(3) HEARING OFFICER 1091
(4) TYPICAL HEARING 1095
(5) RECORD !096
§10.16. ADVISORY COMMITTEE 1096
§10.17. INTERIM MEASURES 1097
(1) CONDITIONS 1098
(2) PROCEDURE 1099
§10.18. RECOMMENDATIONS 1100
§10.19. FINAL DECISION 1100
(1) POSSIBLE RELIEF 1100
(2) FORMAL REQUIREMENTS . . 1102
TABLE OF CONTENTS
§10.20. FINES AND PERIODIC PENALTY PAYMENTS 1105
(1) FINES FOR PROCEDURAL INFRINGEMENTS 1105
(2) FINES PENALIZING COMPANIES FOR SUBSTANTIVE BREACHES OF THE
COMPETITION RULES 1106
§10.21. LIMITATION PERIODS 1127
(1) IMPOSITION OF PENALTIES 1128
(2) ENFORCEMENT OF SANCTIONS 1128
§10.22. SUCCESSION 1129
§10.23. DECISIONS GRANTING NEGATIVE CLEARANCE OR EXEMPTION 1130
§10.24. THE NOTIFICATION PROCESS 1131
§10.25. SUBSEQUENT PROCEDURE 1131
§10.26. PROVISIONAL DECISION 1131
§10.27. FORMAL DECISION 1132
(1) NEGATIVE CLEARANCE 1132
(2) EXEMPTION 1132
(3) REVOCATION 1133
§10.28. COMFORT LETTER 1133
§10.29. GUIDANCE LETTER 1134
§10.30. SETTLEMENTS 1136
(1) COMMISSION PRACTICE 1136
(2) LEGAL VALUE 1138
(3) COMMITMENTS 1138
COMPLIANCE POLICY 1139
§10.31. PURPOSE OF HAVING AN ACTIVE COMPLIANCE POLICY 1139
§10.32. BENEFITS OF HAVING AN ACTIVE COMPLIANCE POLICY 1139
§10.33. THE COMPLIANCE AUDIT 1140
§10.34. THE COMPLIANCE PROGRAMME 1141
(1) GENERAL STATEMENT 1142
(2) SPECIFIC GUIDELINES 1143
GENERAL MEASURES ADOPTED BY THE COMMISSION 1144
§10.35. EXAMPLES OF GENERAL MEASURES 1144
§10.36. BLOCK EXEMPTIONS 1144
§10.37. NOTICES AND GUIDELINES 1146
JUDICIAL REVIEW 1149
§10.38. JURISDICTION 1149
§10.39. DIRECT ACTIONS 1150
§10.40. REVIEWABLE ACTS 1150
§10.41. LOCUS STANDI 1151
§10.42. GROUNDS FOR APPEAL 1153
§10.43. OUTCOME OF APPEAL 1153
COMPETITION LAW OF THE EUROPEAN COMMUNITY
§10.44. ACTION FOR FAILURE TO ACT 1154
§10.45. TIME LIMITS 1155
(1) ACTIONS FOR ANNULMENT 1155
(2) ACTIONS FOR FAILURE TO ACT 1156
§10.46. INTERIM MEASURES 1157
§10.47. THIRD PARTY INTERVENTION 1160
§10.48. STANDARD OF PROOF 1161
§10.49. COSTS 1164
§10.50. LENGTH OF PROCEEDINGS 1165
§10.51. PRELIMINARY RULINGS 1165
§10.52. APPEALS TO THE COURT OF JUSTICE 1166
11. PRIVATE ENFORCEMENT 1167
NATIONAL COURTS 1167
§11.1. INTRODUCTION 1167
§11.2. DECENTRALIZATION PROCESS 1168
§11.3. ADVANTAGES AND DISADVANTAGES OF PROCEDURES BEFORE NATIONAL COURTS
1171
§11.4. APPLICATION OF EC COMPETITION LAW BY NATIONAL COURTS 1172
(1) POWERS OF NATIONAL COURTS 1172
(2) PARALLEL OR CONSECUTIVE APPLICATION OF THE EC COMPETITION RULES
BY THE COMMISSION AND BY NATIONAL COURTS 1174
(3) RIGHT TO DAMAGES BEFORE NATIONAL COURTS 1180
(4) PROCEDURAL ASPECTS OF ENFORCEMENT OF EC COMPETITION LAW
BEFORE NATIONAL COURTS 1185
§11.5. COOPERATION BETWEEN NATIONAL COURTS AND THE COMMISSION 1189
(1) ASSISTANCE OF NATIONAL COURTS BY THE COMMISSION 1189
(2) ASSISTANCE OF THE COMMISSION BY NATIONAL COURTS 1192
§11.6. CONCLUSION 1193
ARBITRATION 1194
§11.7. INTRODUCTION 1194
§11.8. EC COMPETITION LAW AND ARBITRATION: GENERAL PRINCIPLES 1195
§11.9. IMPACT OF THE REGULATION ON PROCEDURE ON ARBITRATION 1197
12. SPECIAL SECTORS 1199
TELECOMMUNICATIONS 1199
§12.1. INTRODUCTION 1199
§12.2. COMPETITION ISSUES ARISING IN THE ELECTRONIC COMMUNICATIONS
SECTOR . 1200
(1) ARTICLE 81 1200
(2) APPLICATION OF THE MERGER REGULATION IN THE ELECTRONIC
COMMUNICATIONS SECTOR . 1224
TABLE OF CONTENTS
(3) ARTICLE 82 1234
(4) SECTOR INQUIRIES 1245
§12.3. REGULATORY FRAMEWORK APPLYING TO THE ELECTRONIC COMMUNICATIONS
SECTOR 1250
(1) THE "OLD' REGULATORY FRAMEWORK 1251
(2) THE NEW REGULATORY FRAMEWORK 1256
(3) THIRD GENERATION (3G) MOBILE COMMUNICATIONS 1271
THE INTERNET 1274
§12.4. INTRODUCTION 1274
§12.5. ACCESS TO THE INTERNET 1275
(1) ACCESS TO THE LOCAL LOOP 1276
§12.6. FORECLOSURE AND INTERNET CONNECTIVITY AMONG ISPS 1278
(1) STRUCTURE OF THE INTERNET 1278
(2) MERGER ACTIVITY CONCERNING INTERNET CONNECTIVITY 1279
§12.7. CONCENTRATIONS TO CREATE INTERNET CONTENT PROVIDERS 1281
(1) PROBLEMS OF MARKET DEFINITION 1281
(2) ENSURING COMPETITION IN EMERGING CONTENT MARKETS 1282
§12.8. ISSUES ARISING IN THE COURSE OF ELECTRONIC COMMERCE RELATIONSHIPS
. . . 1284
(1) ELECTRONIC EXCHANGES 1285
TRANSPORT 1294
§12.9. INTRODUCTION 1294
§12.10. AIR TRANSPORT 1294
(1) INTRODUCTION 1294
(2) MARKET LIBERALIZATION 1295
(2) PROCEDURAL FRAMEWORK FOR ENFORCEMENT OF COMPETITION LAW
IN THE AIR TRANSPORT SECTOR: OVERVIEW 1301
(3) COMPETITION PRIORITIES IN THE AIR TRANSPORT SECTOR 1307
§12.11. MARITIME TRANSPORT 1325
(1) INTRODUCTION 1325
(2) THE IMPLEMENTATION OF ARTICLES 81 AND 82 OF THE EC TREATY
IN THE MARITIME SECTOR 1329
(3) THE MARITIME TRANSPORT REGULATION: APPLICATION OF ARTICLE
81 OF THE EC TREATY TO TECHNICAL AGREEMENTS 1330
(4) THE MARITIME TRANSPORT REGULATION: BLOCK EXEMPTION
FOR LINER CONFERENCES 1332
(5) THE CONSORTIA BLOCK EXEMPTION 1340
§12.12. TRANSPORT BY RAIL, ROAD AND INLAND WATERWAY 1344
(1) INTRODUCTION 1344
(2) REGULATION 1017/68 1345
(3) LIBERALIZATION IN THE RAILWAY SECTOR 1348
COMPETITION LAW OF THE EUROPEAN COMMUNITY
POSTAL SERVICES
1351
§12.13. INTRODUCTION
13
51
§12.14. LEGISLATIVE DEVELOPMENTS IN THE POSTAL SECTOR 1352
(1) THE POSTAL DIRECTIVE 1353
(2) THE POSTAL NOTICE 1354
(3) THE NEW POSTAL DIRECTIVE 1355
§12.15. CASES AND DECISIONS 1356
(1) SCOPE OF EXISTING MONOPOLY RIGHTS 1357
(2) IMPROPER IMPLEMENTATION OF THE POSTAL DIRECTIVE 1359
(3) ABUSE OF A DOMINANT POSITION 1360
(4) PRICE-FIXING AGREEMENTS 1365
ELECTRICITY AND GAS 1368
§12.16. INTRODUCTION 1368
(1) BACKGROUND 1368
(2) HISTORY 1370
(3) THE 'OLD' REGULATORY FRAMEWORK: THE FIRST GAS AND ELECTRICITY
DIRECTIVES 1370
(4) THE INSTITUTIONAL FRAMEWORK COMMON TO THE ELECTRICITY AND GAS
MARKETS 1371
§12.17. THE NEW REGULATORY FRAMEWORK FOR ELECTRICITY 1372
(1) PROGRESSIVE QUANTITATIVE LIBERALIZATION 1372
(2) IMPROVED QUALITATIVE LIBERALIZATION 1372
(3) SECURITY OF ELECTRICITY SUPPLY 1375
(4) PUBLIC SERVICE OBJECTIVES 1376
§12.18. REGULATION ON CROSS-BORDER EXCHANGES OF ELECTRICITY 1377
(1) TSO COMPENSATION 1378
(2) ACCESS CHARGES 1378
(3) PROVISION OF INFORMATION REGARDING INTERCONNECTION CAPACITIES . .
1379
(4) CONGESTION MANAGEMENT 1379
§12.19. SAFEGUARDING SECURITY OF ELECTRICITY SUPPLY AND PROMOTING
INFRASTRUCTURE INVESTMENT 1380
(1) ROLES AND RESPONSIBILITIES OF TSOS AND ELECTRICITY SUPPLIERS .
1380
(2) NETWORK SECURITY 1381
(3) BALANCING SUPPLY AND DEMAND 1381
(4) NETWORK INVESTMENT 1382
(5) INTERCONNECTOR CONSTRUCTION 1382
§12.20. THE NEW REGULATORY FRAMEWORK FOR GAS 1383
(1) PROGRESSIVE QUANTITATIVE LIBERALIZATION 1383
(2) IMPROVED QUALITATIVE LIBERALIZATION 1383
(2) SECURITY OF GAS SUPPLY 1386
TABLE OF CONTENTS
(3) PUBLIC SERVICE OBJECTIVES 1386
§12.21. CONDITIONS OF ACCESS TO THE GAS TRANSMISSION NETWORKS 1387
(1) ACCESS CHARGES 1387
(2) CAPACITY ALLOCATION AND CONGESTION MANAGEMENT PROCEDURES . . . 1387
(3) BALANCING AND IMBALANCE CHARGES 1388
(4) SECONDARY MARKETS 1388
§12.22. SAFEGUARDING SECURITY OF GAS SUPPLY 1388
(1) DEFINING NATIONAL SECURITY OF GAS SUPPLY POLICY 1389
(2) MINIMUM SECURITY OF GAS SUPPLY STANDARDS 1390
(3) MINIMUM SHARE OF NEW GAS SUPPLY FROM NON-EU COUNTRIES . 1390
(4) AUTHORIZATION PROCEDURES FOR BUILDING STORAGE AND LNG
FACILITIES 1391
(5) COMMISSION INTERVENTION IN EXTRAORDINARY SUPPLY SITUATIONS . 1391
§12.23. CASE LAW: FREE MOVEMENT AND COMPETITION RULES IN THE ENERGY
FIELD 1391
(1) ARTICLES 28 AND 30: CAMPUS OIL 1391
(2) ARTICLE 86(2): ALMELO 1393
(3) ARTICLE 86(2): THE GAS AND ELECTRICITY CASES 1394
(4) COMMISSION PRACTICE 1396
THE INSURANCE SECTOR 1402
§12.24. THE APPLICABILITY OF THE COMPETITION RULES TO THE INSURANCE
INDUSTRY 1402
§12.25. INSURANCE BLOCK EXEMPTION 1403
(1) JOINT CALCULATIONS, TABLES AND STUDIES OF RISKS 1405
(2) STANDARD POLICY CONDITIONS AND MODELS 1407
(3) COMMON COVERAGE OF CERTAIN TYPES OF RISKS 1409
(4) SECURITY DEVICES 1412
§12.26. INSURANCE INTERMEDIARIES 1413
BANKING 1414
§12.27. INTRODUCTION 1414
(1) APPLICATION OF COMPETITION LAW TO BANKING SERVICES 1414
(2) MERGER CONTROL 1415
(3) EFFECT ON TRADE BETWEEN MEMBER STATES 1415
§12.28. APPLICATION OF ARTICLE 81(1) TO PRICE AGREEMENTS 1417
(1) PRICE AGREEMENTS CONCERNING SERVICES PROVIDED BY BANKS
TO THEIR CUSTOMERS 1417
(2) PRICE AGREEMENTS CONCERNING SERVICES PROVIDED BETWEEN BANKS. . 1421
§12.29. AGREEMENTS NOT RESTRICTING COMPETITION 1425
§12.30. ARTICLE 82 1427
COMPETITION POLICY AND SPORTS 1428
COMPETITION LAW OF THE EUROPEAN COMMUNITY
§12.31. INTRODUCTION 1428
§12.32. SPECIFIC CHARACTERISTICS OF SPORT AND THEIR IMPLICATIONS FOR
COMPETITION LAW 1429
§12.33. ORGANIZATION OF SPORT 1430
(1) PRINCIPLE OF TERRITORIALLY 1431
(2) MONOPOLY OF THE FEDERATIONS 1432
(3) RULES AIMED AT THE PRESERVATION OF TRUE AND FAIR COMPETITION . 1433
§12.34. BROADCASTING RIGHTS 1434
(1) PARTICULARITIES OF SPORT BROADCASTING 1435
(2) RELEVANT MARKET 1436
(3) EXCLUSIVITY 1437
(4) JOINT SELLING AND PURCHASING 1441
(5) ORGANIZATIONAL RULES IN THE AREA OF BROADCASTING 1444
§12.35. OTHER SOURCES OF REVENUES FOR ASSOCIATIONS AND CLUBS 1445
(1) TICKETING 1446
(2) SPONSORSHIP AGREEMENTS 1447
§12.36. RULES RELATING TO PLAYERS 1448
(1) MOVEMENT OF PLAYERS/TRANSFER RIGHTS 1448
(2) RULES ON PLAYERS' AGENTS 1451
(3) DOPING 1452
NUCLEAR. AGRICULTURE AND DEFENCE 1453
§12.37. OUTLINE OF THIS SECTION 1453
§12.38. NUCLEAR ENERGY 1453
§12.39. AGRICULTURE 1455
(1) APPLICATION OF THE COMPETITION RULES TO AGRICULTURE 1455
(2) EXCEPTIONS UNDER THE REGULATION ON COMPETITION IN
AGRICULTURAL PRODUCTS 1456
(3) PROCEDURE 1459
§12.40. DEFENCE 1460
ANNEX I. BASIC COMPETITION PROVISIONS OF THE EC TREATY 1463
ANNEX II. TABLE OF CASES 1465
ANNEX III. FINES FOR SUBSTANTIVE INFRINGEMENTS 1521
ANNEX IV. COUNCIL REGULATION (EC) NO 1/2003 1585
ANNEX V. COUNCIL REGULATION (EC) NO 139/2004 1621
CORRELATION TABLE 1659
INDEX 1663
XL |
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| building | Verbundindex |
| bvnumber | BV021457982 |
| callnumber-first | K - Law |
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| callnumber-sort | KJE 46456 |
| classification_rvk | PS 3360 |
| classification_tum | JUR 925f |
| ctrlnum | (OCoLC)56922410 (DE-599)BVBBV021457982 |
| dewey-full | 343.24/0721 |
| dewey-hundreds | 300 - Social sciences |
| dewey-ones | 343 - Military, tax, trade & industrial law |
| dewey-raw | 343.24/0721 |
| dewey-search | 343.24/0721 |
| dewey-sort | 3343.24 3721 |
| dewey-tens | 340 - Law |
| discipline | Rechtswissenschaft |
| discipline_str_mv | Rechtswissenschaft |
| edition | 4. ed. |
| format | Book |
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| geographic_facet | Europäische Gemeinschaften. Mitgliedsstaaten Europäische Union. Mitgliedsstaaten |
| id | DE-604.BV021457982 |
| illustrated | Not Illustrated |
| index_date | 2024-07-02T14:06:47Z |
| indexdate | 2024-07-09T20:36:25Z |
| institution | BVB |
| institution_GND | (DE-588)5103937-0 |
| isbn | 9041123091 |
| language | English |
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| physical | XL, 1682 S. |
| publishDate | 2005 |
| publishDateSearch | 2005 |
| publishDateSort | 2005 |
| publisher | Kluwer Law International |
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| spelling | Competition law of the European Community Van Bael & Bellis 4. ed. The Hague [u.a.] Kluwer Law International 2005 XL, 1682 S. txt rdacontent n rdamedia nc rdacarrier Europäische Gemeinschaften (DE-588)35439-9 gnd rswk-swf Europäische Union (DE-588)5098525-5 gnd rswk-swf Europees recht gtt Mededingingsrecht gtt Europarecht Antitrust law European Economic Community countries Cartels European Union countries Exclusive contracts European Union countries Restraint of trade European Union countries Wettbewerbsrecht (DE-588)4121924-7 gnd rswk-swf Europäische Gemeinschaften. Mitgliedsstaaten Europäische Union. Mitgliedsstaaten Europäische Union (DE-588)5098525-5 b Wettbewerbsrecht (DE-588)4121924-7 s DE-604 Europäische Gemeinschaften (DE-588)35439-9 b 1\p DE-604 Van Bael & Bellis (Brüssel) Sonstige (DE-588)5103937-0 oth SWB Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=014678066&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis 1\p cgwrk 20201028 DE-101 https://d-nb.info/provenance/plan#cgwrk |
| spellingShingle | Competition law of the European Community Europäische Gemeinschaften (DE-588)35439-9 gnd Europäische Union (DE-588)5098525-5 gnd Europees recht gtt Mededingingsrecht gtt Europarecht Antitrust law European Economic Community countries Cartels European Union countries Exclusive contracts European Union countries Restraint of trade European Union countries Wettbewerbsrecht (DE-588)4121924-7 gnd |
| subject_GND | (DE-588)35439-9 (DE-588)5098525-5 (DE-588)4121924-7 |
| title | Competition law of the European Community |
| title_auth | Competition law of the European Community |
| title_exact_search | Competition law of the European Community |
| title_exact_search_txtP | Competition law of the European Community |
| title_full | Competition law of the European Community Van Bael & Bellis |
| title_fullStr | Competition law of the European Community Van Bael & Bellis |
| title_full_unstemmed | Competition law of the European Community Van Bael & Bellis |
| title_short | Competition law of the European Community |
| title_sort | competition law of the european community |
| topic | Europäische Gemeinschaften (DE-588)35439-9 gnd Europäische Union (DE-588)5098525-5 gnd Europees recht gtt Mededingingsrecht gtt Europarecht Antitrust law European Economic Community countries Cartels European Union countries Exclusive contracts European Union countries Restraint of trade European Union countries Wettbewerbsrecht (DE-588)4121924-7 gnd |
| topic_facet | Europäische Gemeinschaften Europäische Union Europees recht Mededingingsrecht Europarecht Antitrust law European Economic Community countries Cartels European Union countries Exclusive contracts European Union countries Restraint of trade European Union countries Wettbewerbsrecht Europäische Gemeinschaften. Mitgliedsstaaten Europäische Union. Mitgliedsstaaten |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=014678066&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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