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Brussels, |
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EU Competition Policy
Antitrust & Cartels
The EU's antitrust rules aim to safeguard fair competition by prohibiting restrictive agreements and preventing the abuse of market dominance. These rules are grounded in the Treaty on the Functioning of the European Union (TFEU) and enforced by the European Commission.
Antitrust rules are essential for maintaining a level playing field in EU markets. By enforcing Articles 101 and 102, the EU combats anti-competitive practices, ensures market fairness, and protects consumer interests. The leniency and settlement mechanisms play a vital role in facilitating efficient investigations and promoting compliance.
Key Provisions
Enforcement and Investigative Powers
The European Commission is responsible for applying these rules, with powers to:
The procedural framework for enforcement is detailed in Council Regulation (EC) 1/2003.
Leniency Programme
To uncover secretive cartel activities, the Commission operates a leniency programme: The Commission also carries out its own investigations to detect cartels.
Whistleblower Tool
Individuals can report cartel-related knowledge or suspicions anonymously through the Commission's "whistleblower" tool, contributing to detection and enforcement efforts.
Settlement Procedure
Cartel participants can settle their cases by acknowledging their involvement, leading to:
Antitrust rules are essential for maintaining a level playing field in EU markets. By enforcing Articles 101 and 102, the EU combats anti-competitive practices, ensures market fairness, and protects consumer interests. The leniency and settlement mechanisms play a vital role in facilitating efficient investigations and promoting compliance.
Key Provisions
- Article 101 TFEU: Prohibits agreements between two or more independent market operators that restrict competition.
- Examples of violations:
- Cartels engaging in price-fixing or market sharing.
- Agreements that limit consumer choice or stifle competition.
- Cartels: As the most blatant infringements, cartels are highly secretive. They are a key target for enforcement due to their detrimental impact on markets and consumers.
- Examples of violations:
- Article 102 TFEU: Prohibits firms holding a dominant market position from abusing that dominance.
- Examples of abuse:
- Charging unfair prices.
- Limiting production or distribution.
- Refusing to innovate, to the detriment of consumers.
- Examples of abuse:
Enforcement and Investigative Powers
The European Commission is responsible for applying these rules, with powers to:
- Conduct inspections at business and non-business premises.
- Issue written requests for information.
- Impose fines on companies violating antitrust rules.
The procedural framework for enforcement is detailed in Council Regulation (EC) 1/2003.
Leniency Programme
To uncover secretive cartel activities, the Commission operates a leniency programme: The Commission also carries out its own investigations to detect cartels.
- Companies providing insider evidence of cartel operations may receive full immunity or substantial fine reductions.
- The first participant to offer sufficient information for launching an investigation is eligible for full immunity.
Whistleblower Tool
Individuals can report cartel-related knowledge or suspicions anonymously through the Commission's "whistleblower" tool, contributing to detection and enforcement efforts.
Settlement Procedure
Cartel participants can settle their cases by acknowledging their involvement, leading to:
- A 10% reduction in fines.
- Reduced investigation time and expedited final decisions.
- Streamlined procedures benefiting both the Commission and the involved parties.
