European Competition law

European Competition Law (ECL)

• Two main family laws:  

1. Civil Law (based on codes, written law, principles)
2. Common Law (jurisprudency, based on judges)

There is a mix between systems due to more complex societies

European legal framework:

• Specific law- it concerns all things EUROPEAN like citizens , member states , companies etc. but European law impacts beyond European borders:

1. Foreign states. Bilateral conventions or multilateral like custom agreements
2. Foreign companies. Business and contract

• Special law- it is above member state’s national law, European laws are stronger than national regulations.

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• Statute law- European legal framework is consolidated in different written sources. Institutional law: coming from treaties, conventions and Derivatives: coming from regulations and directives, compulsory.

Competition law:

Regulations to make sure that there is fair competition between companies , eu companies and public operators referred to eu competition law. Due to the globalization process it is needed in today’s world.

Competition deals with 4 main areas:

1.Market dominance

2.Cartels

3.Mergers

4.State aids

Economic competition:

Companies and markets are the 2 conditions needed.

Companies- voluntary association formed and organized to carry on a business, its objective is to sell at best conditions gg and ss

Market- theoretical place where gg and ss are exchanged, ruled by forces of demand and supply with the interaction of agents. Complex notion

ECL objectives

-Protecting economic competition                              FIND A BALANCE[pic 2]

-Mitigating competition

The good is in the middle

EUROPEAN UNION

Copy history

Characteristics:

• Regional area

The European union covers more than 4 million square km, embraces 28 countries.

• Regional Trade agreement

To facilitate trade between European members but the EU has economic and trading links with most developed countries of the world. The euro avoids exchange rate risk

• Economic zone

Largest economic block and the largest exporter and importer.

The EU’s trade is 20% of global exports and imports, 2/3 of our trade is done with other EU members. No custom duties- free movement of gg.

-Harmonized laws

Main treaties of the EU:

1. The Paris Treaty 1951:  established the ECSC (European coal and steel community) It is a free trade area with common policies for coal and steel to reconstruct industries and cities  after the war
2. The Rome Treaty 1957-58: established the EEC (European economic community) and the EURATOM (European atomic energy community) this treaty is the bedrock of much of the institutional system, legislation and policies.  Led to the European Economic Community- free movement of gg, ss, capital and labor, custom union, common market etc
3. The Brussels Treaty (Merger Treaty) 1965: it combined the executive bodies of the ECSC, the EUROTAM and the EEC into a single institution
4. The Single European Act 1987 (SEA): amendments to the Treaty of Rome, completion of the single European market, basis for regional environmental R&D policies.
5. The Treaty of European Union- Maastricht Treat 1992: Birth of the UE with amendments to the treaty of Rome. Commitment to establish economic and monetary union (EMU) with a single currency and European central bank (ECB) European Parliament: Great powers. Maastricht criteria( price stability , budget deficit , debt , interest rates, exchange rate stability)
6. The Amsterdam Treaty 1997: Amendments to the treaty of European union, co-decision procedure is expanded, commission is more accountable to the European parliament (EP)
7. The Nice Treaty 2000: Amendments to the treaty of European union. Enlargement of  the EU up to 27 members, the use of qualified majority at the council of ministers is expanded
8. The Lisbon Treat 2007:  It amends the Rome and the Maastricht treaty. The treaty of Rome was renamed to the TREATY ON THE FUNCTIONING OF THE EUROPEAN UNION (TFEU) where the key of European competition law provisions are found. The Constitution Project was abandoned and had difficulties to get ratification from member states.

Main Institutions of the European union and their role

Member states have agreed through successive treaties to pool their sovereignty for specific matters that have been progressively widened