Topic > Competition Law - 1157

Competition LawCompetition law generally focuses on the prohibition, respectively, of agreements between companies or concerted practices that may limit competition within the market. It prohibits all practices that constitute an abuse of a dominant market position by a company whose practice could potentially affect trade between its members. The provisions of the law establish the basic framework, ensuring the maintenance of effective competition in the market. Competition law based on Articles 85 and 86 of the Treaty of Rome provides for the control of commercial practices within our market. The following are prohibited as incompatible with the common market: all agreements between companies, decisions by associations of companies and concentrated practices which may affect trade between Member States and which have as their object or effect the prevention, restriction or distortion of trade. competition within the common market" Therefore any agreement, decision and practice covered by Article 5, paragraph 1, the following conditions must exist1. There must be some form of collusion between companies2. Trade must be affected3. There must be some negative effect on competition. This section deals with agreements, decisions and practices that:a. Directly or indirectly fix the purchasing or selling price or other trading conditionsb. Restrict or control production, markets, technical development or investments. Sharing markets or sources of supply. Applying dissimilar conditions to equivalent transactions by other parties unrelated to such an agreement, thus placing them at a competitive disadvantage. Subordinate the conclusion of the dispute to the acceptance by the other parties of the further obligations, which by their nature or due to commercial uses, have no connection, with which they form the subject of such contracts. The Competition Law analyzes various aspects in order to foster a healthy business environment. It provides a clear picture of your market positioning. Clearly, the narrower the definition of the relevant market, the greater the importance of a company's share in that market. Once the relevant market has been defined, it is necessary to determine whether the undertaking in question has a dominant position in that market. In general, a company has a dominant position if it can act on the market independently of its competitors. Therefore, if a seller can ask any price for a product, even if its competitors sell a similar product at a much lower price, the seller in question is likely to have a dominant position.