European Union Law (2)

Question 1

Free movement of goods: Article 34 TFEU

Answer 1

Article 34: QUANTITATIVE RESTRICTION on IMPORTS and all measures having equivalent effect shall be PROHIBITED by the Member States.

Question 2

Free movement of goods: Article 36 TFEU

Answer 2

Article 36: unless the (quantitative) restrictions can be justified on the grounds laid down in this article.

Question 3

Distinctly applicable

Answer 3

• Measures applicable only to imports.

* Normally not allowed as in breach of Article 34 of the TFEU.

Question 4

Indistinctly applicable

Answer 4

• Measures applicable to domestic and imported products alike.
• But: If it has a restrictive effect, these may also be contrary to Article 34.

Question 5

Quantitative restrictions are prohibited

Answer 5

Any charge, whatever it is called or however it is applied, on a product imported from a Member State that would have the same effect as a customs duty. For example, a national measure like a quota.

Question 6

Dassonville formula

Answer 6

DEFINES quantitative restrictions as all trading rules that might HINDER the trade in an INTERNAL MARKET

Question 7

Three conditions to be considered a ‘worker’

Answer 7

1. There must be an EMPLOYMENT RELATIONSHIP of subordination, under which the worker performs his job under the control and the directions of another person
2. A worker must be ENGAGED in GENUINE AND EFFECTIVE economic activity
3. The economic activity must NOT be on such a small scale as to be purely marginal and ancillary

Question 8

Description of a worker

Answer 8

• A worker is an employed person. A worker from one EU country has the right to work as an employee in another EU Country.
• A worker in effective employment has the right to a residence permit (as do the members of his/her family).

Question 9

Freedom of establishment

Answer 9

Right of a natural or legal person to set up a permanent base for business in a Member State other than their own.

Question 10

Freedom to provide services

Answer 10

To provide services in a different Member State on a temporary basis.

Question 11

EU Competition Law; to whom does it apply?

Answer 11

Applies even to non-EU companies if they trade in the EU and that trade could distort the internal market.

• At the EU level, enforcement is by the European Commission.
• It first investigates, then informs the parties and, after a hearing, issues a Decision.
• Each member state also has a national competition authority.

Question 12

EU Competition law: Articles 101, 102 TFEU and Merger Regulation

Three rules to protect competition:

Answer 12

1. prevent restrictive practices by prohibiting ANTI-COMPETITIVE AGREEMENTS: Article 101 TFEU
2. prevent powerful businesses from ABUSING their dominant market position: Article 102 TFEU
3. prohibiting MERGERS that may harm competition (Merger Regulation 2004).

Question 13

Article 101 prohibits:

Answer 13

• AGREEMENTS between UNDERTAKING
• Decisions by associations of undertakings
• CONCERTED PRACTICES that prevent, restrict or distort competition in the internal market of the EU.

All such agreements are prohibited where the object or effect is the distortion of competition in the internal market.

Question 14

Article 101 is against…

Answer 14

Cartel forming: where the major suppliers of a product, operating on a mixture of agreements and concerted practices, coordinate their behaviour. This prevents competitors entering the market and, where it affects trade within the internal market of the EU, it falls under EU jurisdiction.

Cartel members can be heavily fined by the European Commission.

Question 15

Article 102 prohibits:

Answer 15

Abuse by one or more undertakings of a dominant position in the internal market.

Question 16

Dominant position is not defined in the treaty. Dominant position requires:

Answer 16

• defining relevant market and

* whether the undertaking has the power to prevent or exclude competition

Question 17

Abuse is not defined in the treaty. Only a non-exhaustive list of examples is given:

Answer 17

• Unfair purchase or selling prices
• Limiting production
• Applying different conditions to equivalent transactions or refusing to supply
• Tying: imposing supplementary obligations not connected to the main purpose of the contract.

Question 18

Competition law:

Merger

Answer 18

Where a company (or more than one) becomes a part of or merges with another company.

Question 19

Competition law: Merger Regulation

EU test:

Answer 19

If the merger would significantly impede competition within the internal market as a result of the creation or strengthening of a dominant position.

The European Commission may stop a merger if the test predicts impeded competition.