Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription. Article 102 of the treaty on the functioning of the european union formerly article 82 of the treaty establishing the european community is aimed at preventing undertakings who hold a dominant position in a market from abusing that position. This follows from the fact that article 106 tfeu is addressed to the member states, but is an empty norm that only gets substance when it is read in conjunction with another treaty provision. The following shall be seen as incompatible with the internal market. This paper explores how the court of justice of the eu cjeu and the commission conduct this multilevel balancing of interests in the context of article 106 2 tfeu. The european law blog aims to highlight, and comment on, current developments in eu case law. However, this is a limited exception and is strictly construed.
Team 20112012 article 10 an article 101 violation, as in tmobile, is one that satisfies the elements of article 1011. The first criterion concerns the liberalisation of postal services, which requires mss to remove special or exclusive rights in the postal services sector. Article 2634 tfeu and the case of the mystery measures april 3, 2011. Article of the tfeu modified form of articles 1071 and 108 3 conditions on modified articles 1071 and 108 3 article 1071 any aid granted by the state or through state resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between the united kingdom and. This chapter examines how competition law applies to the actions of the state when it intervenes in the market through undertakings that it controls or owns or which it places in a privileged position. For instance, they have continued to apply the margin squeeze theory to cases where inputs controlled by dominant firms are essential for downstream competition or must. Article 106 2 provides that other treaty rules may be disapplied in order to sustain a service of general economic interest sgei. The merger regulation council regulation ec no 92004 and its implementing rules commission regulation ec no 8022004 articles 37, 106 and 345 tfeu for public undertakings and articles 14, 59, 93. Indeed an agreement may be regarded as having a restrictive object even if it does not have the restriction of competition as its sole aim but also pursues other legitimate objectives. The unions action on the international scene, pursuant to this part, shall be guided by the principles, pursue the objectives and be conducted in accordance with the general provisions laid down in chapter 1 of title v of the treaty on european union. The council, on a proposal from the commission and after consulting the european parliament, may make any appropriate regulations for the application of articles 107 and 108 and may in particular determine the conditions in which article 108 3 shall apply and the categories of aid exempted from this procedure. Article 1012 declares that any agreement or decision prohibited by art. Nevertheless, member states are obliged to ensure the full effectiveness of the treaty provisions, in accordance with the duty of sincere cooperation, as enshrined in article 4 3 teu. This chapter discusses how the balancing in article 106 tfeu is similar to that under articles 101 and 102 tfeu, in that the necessity of the restriction of competition is assessed.
This rather general principle has often been used by the european court of justice ecj to ensure close cooperation between the eu and. Having regard to the treaty on the functioning of the european. Free competition is a vital part of the functioning of the internal market which is why it is imperative that provisions are in place to prohibit any restrictions that. Commission regulation ec no 8002008 of 6 august 2008 declaring certain categories of aid compatible with the common market in application of articles 87 and 88 of the treaty general block exemption regulation, oj l 214, 9. Rules applying to undertakings article 106 ex article 86 tec. Exclusive or special rights under article 106 tfeu. Iv, issue 8 november 2016 6949 enjoyed by the consumer. Later on, on march 22, 1999 the council published regulation no 6591999 2 which intended to lay down detailed rules for the application of former art. Commission communication 2012 22 commission notice 23 ibid. Links to articles of the tfeu can be made easily with the celex template. Without prejudice to article 4 of the treaty on european union or to articles 93, 106 and 107 of this treaty, and.
Article 102 of the treaty on the functioning of the european. This turns on the question whether actual abuse by the public undertaking must be shown in article 106 tfeu cases. See ramona ianus and massimo orzan, aid subject to a discretionary assessment under article 1073 tfeu in h hoffman and c micheau eds, state aid law of the european union oxford university press 2016 304. Finally, article 106 3 tfeu is a peculiar legal basis, allowing the commission to adopt directives and decisions in order to implement the rules set out in the precedent paragraphs. New article 42d tfeu has a bearing on legislative work in the sphere of agriculture in that the european institutions apply the subsidiarity principle fact sheet 1. Rules applying to undertakings article 101 ex article 81 tec 1. Article 101 of the treaty on the functioning of the european union prohibits cartels and other agreements that could disrupt free competition in the european economic areas internal market. An overview of eu and national case law, 23 march 2016, ecompetitions exclusive rights art. Competition rules applying to undertakings treaty on the functioning of the european union article 101. The judgment in greek lignite case t16908 4 october 2012 by hans vedder. Not all measures constituting state aid are prohibited.
Without prejudice to article 4 of the treaty on european union or to articles 93, 106 and 107 of. During the period covered, the european commission and courts have followed their traditional approach in the application of article 102 tfeu abuse of dominant position. Article 108 3 of the treaty as it can be deemed compatible with article 106 2 of the treaty. Member states shall respect their independence and shall not seek to influence them in the performance of their tasks. Article 14 tfeu ex article 16 tec without prejudice to article 4 of the treaty on european union or to articles 93, 106 and 107 of this treaty, and given the place occupied by services of general economic interest in the shared values of the union as well as their role in promoting social and territorial cohesion. Prohibition of aid chapter 11 article 108 tfeu procedure before the commission.
In fact, there are three subsections in article 101. Its core role is the regulation of monopolies, which restrict competition in private industry and. Article 101 tfeu is one of the most prominent treaty provisions on competition. The union shall have exclusive competence in the following areas. Article 101 3 tfeu, this was seen as highly unlikely. Consolidated version of the treaty on the functioning of. Article 106 tfeu published on 28 nov 2014 by edward elgar publishing. Article 245 ex article 2 tec the members of the commission shall refrain from any action incompatible with their duties.
Article 106 2 tfeu which precludes the application of article 101 tfeu where compliance with article 101 tfeu would otherwise obstruct undertakings from performing tasks assigned to them by member states. Clarification of the law or jumpstarting article 106 tfeu. Competition law webinar article 101 linkedin slideshare. Chapter 9 article 106 tfeu public undertakings chapter 10 article 107 tfeu general rule. Without prejudice to article 4 of the treaty on european union or to articles 93, 106 and 107 of this treaty, and given the place occupied by services. Aims of article 101 tfeu the main aim of article 101 is to provide redress to those affected by any restrictions that are placed on free competition within the internal market. Article 102 of the treaty on the functioning of the. Article 106 2 tfeu is traditionally seen as a derogation to the treaty provisions and has an awkward role in the treaty chapter on competition. Critically discuss how eu law as applied under article 101. The following shall be prohibited as incompatible with the internal market. Article 14 ex article 16 tec without prejudice to article 4 of the treaty on european union or to articles 93, 106 and 107 of this treaty, and given the place occupied by services of general economic interest in the shared values of the union as well as their role in promoting social and territorial cohesion, the union and the. This is provided that they can fulfil certain conditions under commission regulation nos 27901999 and 14002002.
Mar 23, 2016 jose luis buendia sierra, exclusive or special rights under article 106 tfeu. How does article 10 tfeu case law relate to ec guidelines. We use cookies to enhance your experience on our website. As a general rule, the commission negotiates agreements with third countries on behalf of the eu, but article 218 3 leaves it open for the council to nominate a different union. A case commentary explains eu competition law by presenting the relevant legal provisions together with carefully selected case extracts pertaining to those provisions.
This follows from the fact that article 106 tfeu is addressed to the member states, but is an empty norm that only gets substance when it. In the case of public undertakings and undertakings to which member states grant special or exclusive rights, member states shall neither enact nor maintain in force any measure contrary to the rules contained in the treaties, in particular to those rules provided for in article 18 and articles 101 to 109. The selection is based on the interpretative value of the extracts and is limited to the essentials in order to clearly demonstrate how competition. Article 106 2 tfeu is traditionally seen as a derogation to the treaty provisions and has an awkward role. Sep 09, 2014 this turns on the question whether actual abuse by the public undertaking must be shown in article 106 tfeu cases.
Declaration by ireland on article 3 of the protocol on the position of the united kingdom and ireland in respect of the area of freedom, security and justice. Article 10 provides a basis to make article 1011 inapplicable to certain. Damages actions for breach of articles 101 and 102 tfeu. In its notice on the application of the article 81 3 ec 2004, now article 101 3 tfeu, the commission includes the statement that.
Competition rules applying to undertakings treaty on the. Article 106 2 tfeu in case law austrian law journal uni graz. Article 101 of the treaty on the functioning of the. It concerns hard core restrictions of competition like cartels as much as efficiency enhancing agreements. In this case the commission considered, whether extension of 1 karayigit, 2009, p. Article 3 of the treaty of the european union teu articles 3, 4, 5 and 6 of the tfeu. Critically discuss how eu law as applied under article. Article 106 tfeu only provides for the second form of integration, balancing. This chapter examines how competition law applies to the actions of the state when it intervenes in the market through undertakings which it controls or owns or which it places in a privileged position.
Rather, according to article 108 tfeu, all new state aid measures according to the five criteria set out in article 107 tfeu have to be notified to the european commission. Article 14 ex article 16 tec without prejudice to article 4 of the treaty on european union or to articles 93, 106 and 107 of this treaty, and given the place occupied by services of general economic interest in the shared values of the union as well as their role in promoting social. However, research indicates that this usually involves reference only to article 1062 tfeu. Commission decision of 20 december 2011 on the application of. Changes following the entry into force of the treaty of lisbon. The rhetorical presentation of article 106 2 is as a strict exception. The chapter also considers article 106 3 and the question of the direct effect of article 106 1 and 2. This chapter raises the question of the purpose of article 106 tfeu ex article 86 ec. Oct, 2014 finally, article 106 3 tfeu is a peculiar legal basis, allowing the commission to adopt directives and decisions in order to implement the rules set out in the precedent paragraphs. According to article 218 3 tfeu, the european commission would make recommendations to the council to open negotiations with the withdrawing state. General provisions on the unions external action article 205. Particular restrictions that fall within the impugned category are therefore automatically seen as having the object of restricting competition under article 1011 tfeu. To provide a full picture, this balancing is assessed by looking into both the requirements for the derogation and its scope of application.
The duty of sincere cooperation laid down in article 4 3 teu includes a mutual legal obligation for the eu and the member states to assist each other in carrying out the tasks which flow from the treaties. The discussion includes the principle of union loyalty in article 4 3 teu. Consolidated version of the treaty on the functioning of the. It highlights the different function of article 106 tfeu but shows that preventative integration is also not possible via article 106 2 tfeu.
Competition law and the social market economy goal of the. Eu competition law rules applicable to antitrust enforcement. Union tfeu and of the treaty on european union teu b. Oct 24, 2016 since not all anticompetitive conduct between undertakings will be considered illegal. Government failure in public service provision offers a sceptical perspective on how eu law applies to public services. Dei is important for the first limb of article 106 when applied in combination with article 102 tfeu. Agreements that restrict competition by object under. The fact that article 106 tfeu may have a broader scope than competition law for example in combination with free movement provisions does not alter the authors position that complainants under article 106 tfeu in combination with article 101 or 102 tfeu should not be treated differently from under article 101 or 102 tfeu alone since in.