Exploring the Intricacies of Horizontal Agreements and Cartels in EU Competition Law

Competition law in the European Union (EU) plays a crucial role in ensuring a level playing field for businesses to thrive and consumers to benefit from a competitive market. One of the key aspects of EU competition law is the regulation of horizontal agreements and cartels, which can restrict competition and harm the economy.

Understanding Horizontal Agreements

Horizontal agreements refer to agreements made between competing businesses that operate at the same level of the supply chain. These agreements can take various forms, such as price-fixing, market sharing, bid-rigging, and customer allocation. The purpose of such agreements is usually to eliminate competition and maximize profits for the involved parties.

Under EU competition law, horizontal agreements that significantly restrict competition are considered illegal. The main legislation that governs this area is Article 101 of the Treaty on the Functioning of the European Union (TFEU). This article prohibits agreements that have the object or effect of preventing, restricting, or distorting competition within the EU's internal market.

Horizontal Agreements and Cartels in EU Competition Law

by Alex Monaco (1st Edition, Kindle Edition)

5 out of 5

Language	:	English
File size	:	2554 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	512 pages
Lending	:	Enabled

FREE

The Impact of Cartels on Competition

Cartels, a specific type of horizontal agreement, have a profound impact on competition within the EU. Cartels involve collusion between competing companies to fix prices, limit production, share markets, or rig bids. These practices harm consumers by reducing choices, leading to higher prices and lower quality products or services.

The European Commission, the EU's competition watchdog, actively investigates and prosecutes cartels to safeguard consumer welfare. Cartels are strictly prohibited under Article 101 of the TFEU, and companies involved in cartel activities can face severe fines amounting to a significant portion of their annual turnover.

Leniency Program

To encourage companies to come forward and disclose their involvement in cartels, the European Commission offers a leniency program. This program provides immunity or a reduction in fine to the first company that provides information regarding the cartel's operation. Subsequent companies that cooperate may also benefit from reduced fines.

Enforcement and Penalties

The enforcement of EU competition law is carried out by the European Commission in collaboration with national competition authorities. Companies found guilty of breaching the rules can face significant financial penalties. In some cases, individuals involved in cartel activities may also face imprisonment.

The penalty for participating in a cartel can be up to 10% of the company's worldwide turnover. These fines are designed to deter companies from engaging in anti-competitive practices and protect the interests of the EU's internal market.

Recent Cases and Developments

Over the years, the European Commission has been actively pursuing cases related to horizontal agreements and cartels. Some notable cases include the investigation into collusion among major truck manufacturers and the fining of several banks for manipulating benchmark interest rates.

Recent developments have seen the European Commission adopting a more proactive approach in targeting anti-competitive behavior. The of digital market regulations and increased scrutiny over mergers and acquisitions reflect the EU's commitment to maintaining fair competition in the digital age.

Horizontal agreements and cartels pose a significant threat to competition within the EU. By actively enforcing its competition law, the EU aims to create a fair and competitive market for businesses and consumers alike. It is essential for companies to understand the regulations and consequences associated with anti-competitive behavior to avoid costly fines and penalties.

Ensuring a level playing field is not only beneficial for consumers but also fosters innovation, economic growth, and prosperity. By curbing the harmful effects of horizontal agreements and cartels, the EU continues to drive towards a more competitive and vibrant marketplace.

Horizontal Agreements and Cartels in EU Competition Law

by Alex Monaco (1st Edition, Kindle Edition)

5 out of 5

Language	:	English
File size	:	2554 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	512 pages
Lending	:	Enabled

FREE

Investigating, dissolving, and punishing cartels is increasingly a top priority for the European Commission and for national competition authourities. This work offers the most up-to-date and comprehensive examination of the substantive law and procedure of EU competition law as it applies to cartels as well as to other horizontal agreements.

This unique work supplies the views of both private practitioners and public enforcers. The private practitioners discuss their day-to-day experience and share the insights which they believe their fellow-practitioners should be aware of. The public enforcers act in tandem with the private practitioners and add in their contribution the specific points of attention which they recommend practitioners should take into account. The work sets out the ways in which a cartel is defined and organised,
how a cartel may be detected and investigated, the issue of liability for cartels (including parental and successor liability), the various sanctions available to investigating authorities, and the prospects for private enforcement and damages actions brought by victims of cartels. It addresses the
procedure before the European Commission and the European Courts. Finally, the book deals with information exchanges (including an economic perspective), joint R&D agreements, specialisation agreements and other common types of horizontal agreements like joint purchasing, joint selling and standardisation.

Containing practical advice for practitioners, overviews of the various stages of cartel enforcement, procedural checklists, analysis of the most recent legislation including the new EU damages directive, and written by authors with extensive experience in advising the Commission's legal service in relation to competition law, this is the most comprehensive text available on cartels in EU competition law.