Eu Law on Agreements
The European Union (EU) has established a comprehensive legal framework to regulate agreements between companies operating within the EU and their counterparts outside of the EU. These regulations are designed to ensure that businesses are compliant with the EU`s competition laws and that fair competition is promoted across all markets.
One of the primary laws governing agreements within the EU is the Treaty on the Functioning of the European Union (TFEU). Article 101 of the TFEU prohibits agreements that prevent, restrict, or distort competition within the EU. This includes agreements that directly or indirectly fix prices, limit production, allocate markets or customers, or engage in similar anti-competitive practices.
Furthermore, Article 102 of the TFEU prohibits abuse of a dominant position by one or more companies within a market. This includes practices such as predatory pricing, the refusal to supply, and exclusive dealing, which are designed to unfairly exclude competitors from a market.
To enforce these laws, the EU has established several bodies responsible for investigating and prosecuting anti-competitive behavior. The EU Commission is the primary enforcement agency and has the power to impose fines and other penalties on companies found to be in violation of EU competition laws.
In addition to the TFEU, the EU has also established several specific regulations to govern agreements within certain sectors. For example, the Vertical Block Exemption Regulation governs agreements between companies in the supply chain, while the Technology Transfer Block Exemption Regulation covers agreements relating to intellectual property rights.
The EU also has a number of guidelines and best practices intended to help businesses comply with these regulations. These guidelines provide practical advice on how to structure agreements to ensure compliance with EU competition laws.
In summary, the EU has established a comprehensive legal framework to regulate agreements between companies operating within the EU and their counterparts outside of the EU. These regulations are designed to ensure fair competition and prevent anti-competitive behavior. Businesses operating within the EU should be familiar with these regulations to ensure that they comply with EU competition laws.