EC Competition Policy
The European Community has rules to ensure free competition in the Single Market and the European Commission is responsible for applying these rules throughout the Community, working closely with national governments.
The EC competition rules are set out in Article 81 (formerly Article 85) and Article 82 (formerly Article 86) of the Treaty of Rome.
Article 81 prohibits anti-competitive agreements which may have an appreciable effect on trade between Member States and which prevent, restrict or distort competition in the Single Market. The Commission can grant individual or group exemptions from this prohibition if there are overriding countervailing benefits such as an improvement in efficiency or the promotion of research and development.
Article 82 prohibits the abuse of a dominant position insofar as it may affect trade between member states. There is no possibility of exemption.
The EC Merger Regulation (ECMR) provides that a merger which creates a dominant position as a result of which effective competition would be significantly impeded in the common market or in a substantial part of it shall be declared incompatible with the common market. The Regulation applies to all mergers with a "Community dimension", defined by reference to turnover criteria. The European Commission has exclusive competence over such mergers although there are provisions for Member States to take action in special circumstances.
In general, the Department for Business, Enterprise and Regulatory Reform (BERR) is the Commission's main contact on policy and block exemptions. The Office of Fair Trading deals with the Commission on individual cases. Neither BERR or the OFT can advise individuals on the merits of a specific case but the OFT can provide advice on procedures for approaching the European Commission.
The current regime is in the process of being reformed.