European Union has regulated certain law to manage and control the competitive activities between different trading units and businesses during their personalized growth plans. This law is called European Union Competition Law. It regulates anti competitive conduct between the companies in European Single Market ensuring that they would not create any disruptive atmosphere in the industry.
European competition law is based upon the context of articles 101 to 109, under TFEU(Treaty on the Functioning of European Union). It sets up particular competition rules to be followed by the companies during any corporate conduct. This law provides freedom to all organizations to put a complain against any illegal or abusive attempt by any other organization under any deals,mergers or assignments.
Four main policies of EU law are:
-Controlled conductive activities between different organizations by prohibition of Cartles and Collusion ie. Deceitful agreements between small business associations under Article 101.
-Mergers accomplishing goals of customer satisfaction and upgradation in market benefit are allowed as per European Union merger law. Mergers and acquisitions are specially controlled by EU competition law as there may develop overpowering or legal issues between the companies under a merger agreement.
-Controlled disbursement of State aids,direct or indirect aids given by Member States of the European Union. To ensure that state aid is not creating any deformation in healthy competition in industry, EU competition law gets direct assess to supervise all processing of state aids.
-Control of any abusive or dominant behaviour by any leading or superior organization under Article 102.
The main objective behind the implementation of this law is to bring developmental changes in market and to induce profit oriented conducts between different organizations. Any mergers that do not meet the regulations of EU Merger law ie. there combined revenues must not exceed specific revenue thresholds. From last 20 years, European Commission has approved over 3000 mergers and rejected over 10 mergers that were not upto the standards of merger laws.The companies undergoing mergers must seek permission for the same from European Union. This law works to regulate State aids for crisis situations like Covid-19 pandemic and helps the business to tackle the economic disturbances. It surpasses the use of term “undertaken” and emphasizes on conversion of powers between two units to yield mutual benefits.
European Commission holds the authority to apply European union competition laws. In some sectors like agriculture, state aids are regulated by Directorate Generals.
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