Competition Law: Vertical Restraints and Vertical Mergers

College
Essay
Miscellaneous
Pages 13 (3263 words)
Download 0
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…

Introduction

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
Not exactly what you need?

Related papers

Antitrust and Regulation
The law is premised on the belief that free trade benefits the economy, businesses and the consumers by forbidding various restrains of trade and monopolization. It falls under four areas namely agreement between competitors, contractual arrangements between sellers and buyers the pursuit or maintenance of monopoly power and mergers (Wilberforce, 98).…
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…
Achieving strong vertical and horizontal alignment
Human resource management (HRM) practices are critical to the success of business organizations. The goal of organizations is to maintain a strong customer base and increase revenue, but how to achieve this is equally importantStrategic HRM approaches involve a spotlight on the alignment of HRM practices with each other, which is referred to as internal consistency or alignment; and the alignment…
Site Distance Equation for Crest Vertical Curves
The elevation of various points of the curve gives the relative difference in the level at different points on the curve. Also shown in the figure are length of the curve, start of the curve and also the end of the curve. To provide easy movement of vehicles and also to smooth out the vertical profile the vertical curves are introduced at the intersection of the grades. Usually two type of…
"The treatment of vertical agreements in EC competition law has changed significantly during the last ten years."
Article 81 regulates anti-competitive behaviour in a wide range of scenarios and has been applied with reference to what the EU is trying to achieve: a level playing field2 for competition within an internal market. The aim of achieving market integration between the Member States is apparent in many rulings of the Commission and European courts.…
A vertical integration strategy and a corporate diversification strategy
First, it can reduce opportunistic threats from the firm's buyers and suppliers by making transaction-specific value-adding investments, e.g., by capitalizing on economies of scale (opportunism-based). Second, the firm can exploit any of its valuable, rare, and costly-to-imitate resources and capabilities, e.g., as part of the processes used to make its end-products (capabilities-based). Third,…
Vertical Crest Equations
Current road network systems require proper and detailed construction to ensure they last long and also handle different vehicles using the road. There are different types of roads. These include stone paved roads, timber track ways, and brick paved roads, tarmac roads among other types of roads. Tarmac roads are most the most common types of roads in the modern world.…