Cartel Legal Framework

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Cartel Legal Framework

Cartel Legal Framework

The cartel’s rights are created by primary treaty law rules that are:
• Council and Commission Regulation;
• Decisions of the European Court of Justice;
• Commission decisions;
• Other mechanisms, such as Tips and Recommendations published by the Commission.

This provision implies the creation of a competitive market economy. Also, the Treaty regulates and stipulates that limiting existing barriers requires mechanisms that are in the role of precautionary measures.

The Treaty guarantees economic expansion, trade turnover, and competitiveness. Article 101 of the Treaty brings to our attention the types of agreements considered to be prohibitions that affect free competition. This provision, which is also in point 2, points out the transactions or decisions that are forbidden; that is, they do not bring any legal consequences. Whereas Article 102 TL states that any abuse by one or more undertakings of a dominant position within the internal market is prohibited. These two provisions are directly applicable. Violation of the right to the cartel is followed by sanctions from the European Commission that impose hefty fines or revocation of licenses for companies that violate the cartel.

For a cartel to be considered a breach, four stages must be fulfilled:

1. Presence of the most crucial product suppliers;
2. Agreement on how they will organize their movements, e.g., in the case of how they will set prices, etc.;
3. Lowering costs below that of the “fraud” cartel;
4. High barriers that prevent other competitors from being part of the market by reducing cartel profits.

Ordinance Nr. Council of Europe Regulation (EC) No 139/2004 of 20 January 2014 provides for competition control provisions so that competition is fair. In provision no. 5 of this Directive, it is provided that the Commission has the ability to include regulations, which may impede effective competition in the stock market or a substantial part thereof.

The Commission was initially the main body for the implementation of cartel law. It served as a bridge between commercial enterprises, permitting them to enter into agreements under Article 101/3 of the Lisbon Treaty. Order no. 17/62 stipulated that the Commission had a duty to grant undertakings if the purposes of the agreements were attributable to market improvement. But as the Commission was the only institution to deal with this cause, it led to a great deal of understanding. The Commission then set up a new system that served to ensure that companies no longer had to notify the Commission in cases where they were incorporated, but they had to carry out such self-control that did not include a breach of competition.

The Directive, No. 1 of 2003, issued by the Commission together with the ECJ and under the support of national competition authorities, provided that Article 101 No.3 of the Treaty of Lisbon has direct application and provides for a legal exception, in which all agreements that meet the conditions of this Article and are without prejudice to Article 101, paragraph 1, shall be excluded.

Legal protection of consumers and the right to security

The Single European Act reaffirmed that to fulfill the so-called “major needs,” under former Article 100A of the Treaty on European Economic Community, Member States must prove that their national legislation is non-discriminatory non-discriminatory contain restrictive provisions regarding free trade. “Big needs” included issues such as health, safety, the environment, and consumer protection. At first of the 1990s, the Commission stated: “The promotion and security of European consumers’ interests must be ensured.

For example, the Member States whose purpose or effect is to prevent, restrict, or distort competition in the domestic market, in particular, those of the external market, which are:

Directly or indirectly fix the purchase and sale prices or any other conditions of the story;?
Restrict or control production, markets, technical developments, or investments;?

Different markets or sources of supply;?

Implement terms similar to transactions with other trading parties, thereby placing them at a competitive disadvantage in protecting consumer protection rights. Make the termination of contracts conditional upon acceptance by other parties of additional obligations which, by their nature or by commercial customs, have no relation to the subject of those contracts. Deal any agreement or decision prohibited under this section shall be automatically void?

However, the first paragraph’s provisions may be declared unenforceable in cases of any contract or category of agreement between undertakings?

The Treaty of Amsterdam reaffirms the Commission’s competences in consumer protection to ensure a higher security level by taking into account social change and scientific facts. By the Council Resolution, the Commission will develop schemes to increase consumer confidence by providing complete, systematic, and useful information, increasing market transparency, and improving product safety and security at the end of November. services, everyday market objects.”

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