Competition Law: Vertical Restraints and Vertical Mergers - Essay Example

Only on StudentShare

Extract of sample
Competition Law: Vertical Restraints and Vertical Mergers

Abusive practices by such businesses may have a large impact on cross-border trade. Vertical Restraints and Vertical Mergers are two ways in which corporations may seek to increase their influence in the market. Although Vertical Restraints and Vertical Mergers are not per se anti-competitive or pro-competitive, but in this paper we examine the anti-competitive risks of each. The hypothesis is that since the anti-competitive risks of both are same, so they should be subject to the same principles.
The EC Community Competition Policy is targeted towards three kinds of anti-competitive activity. The laws applicable to each are also different. First, Restrictive Trading agreements between otherwise independent business undertakings which may affect trade between Member States and which distort competition within the common market (Art 81 EC Treaty) Second, Abusive, anti-competitive practices of large undertakings that dominate markets for goods or services which affect trade between Member States. (Art 82 EC Treaty), and lastly, major mergers of undertakings resulting in positions of market dominance in the Community. (EC Merger Regulation 139/2004, which replaced Regulation 4064/89)
In 2004, the laws relating to both restraints and mergers were changed profoundly. ...
Download paper

Summary

Competition stimulates firms to become more efficient and to offer a wider choice of products and services at lower prices and aid in growth and development. In its First Report on Competition Policy European Commission emphasised the value of effective competition in the community…
Author : tkoss

Related Essays

Antitrust and Regulation
5 pages (1255 words) Term Paper
Achieving strong vertical and horizontal alignment
5 pages (1255 words) Article
"The treatment of vertical agreements in EC competition law has changed significantly during the last ten years."
15 pages (3765 words) Essay
A vertical integration strategy and a corporate diversification strategy
2 pages (502 words) Essay
Vertical Crest Equations
11 pages (2761 words) Thesis
Mergers, acquisitions and strategic alliance
23 pages (5773 words) Essay
Vertical Road
3 pages (753 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!