European Union Law Vocab

Question 1

Abuse

Answer 1

Abuse (of a dominant position): this term is relevant to EU competition law. It relates to the abuse of a dominant position in the market. The term ‘abuse’ is not defined in the Treaty, but examples of abuse in the shape of exploitative behaviour are given. There is no need to show that the undertaking intended to cause harm.

Question 2

Advocate General

Answer 2

Advocate General: his task is to review a case and present his opinion to the judges hearing the case. The judges are not bound by his opinion and may accept or reject it.

Question 3

Agreement

Answer 3

Agreement: as used in EU competition law, it is meant to cover both formal and informal arrangements between undertakings.

Question 4

Anti-competitive abuses

Answer 4

Anti-competitive abuses: the TFEU does not define abuse as such but lists types of anti-competitive abuse. The following would fall under that heading:

• unfair prices: prices that have no reasonable relation to the value of a product, such as too high prices or predatory pricing, where the price of goods is set too low in order to drive out competitors. Discriminatory prices arise where different customers are charged different prices for the same product;
• exclusive dealing: where it is a condition of the sale that the buyer will deal only with that seller;
• fidelity rebates: a loyalty discount is a reduction in price granted on condition that a specific proportion of the buyer’s requirements are bought from the supplier;
• tying: where a condition of entering into a contract is that supplementary obligations are entered into as well. In order to buy one product (the tying product), the buyer must agree to buy a second product (the tied product) from the seller;
• refusal to supply: where a dominant undertaking refuses to supply another undertaking, intending to drive it out of business.

Question 5

Antitrust law

Answer 5

Antitrust law: the American term for competition law to encourage competition in the market place.

Question 6

Associations of undertakings

Answer 6

Associations of undertakings: these are usually trade associations sharing the same interests.

Question 7

Block exemption

Answer 7

Block exemption: certain categories of agreement will not infringe EU competition law.

Question 8

Cartel

Answer 8

Cartel: major suppliers of a product or service coordinate their behaviour, for example by agreeing to set prices or allocate geographical markets to each other, thereby influencing competition in the market.

Question 9

Cassis de Dijon principle

Answer 9

Cassis de Dijon principle: otherwise known as the rule of reason. Even where a measure does not discriminate against imports from other Member States, it may still be prohibited if it restricts trade. An exception is made if the measure was necessary to satisfy the mandatory requirements of that Member State with regard to fiscal supervision, protection of public health, the fairness of commercial transactions and the defence of the consumer.

Question 10

Charter of Fundamental Rights

Answer 10

Charter of Fundamental Rights: the EU Charter provides a range of civil, political, economic and social rights to EU citizens and residents. These rights are based on the fundamental rights recognised by the European Convention on Human Rights, the constitutional traditions of Member States and other international conventions.

Question 11

Civil Service Tribunal

Answer 11

Civil Service Tribunal: this is a specialised court. It determines disputes involving the EU civil service: disputes between employees of the EU institutions and the institutions themselves.

Question 12

Commissioners

Answer 12

Commissioners: those who have been nominated by the governments of the Member States to sit in the Commission.

Question 13

Common customs tariff

Answer 13

Common customs tariff: a common tariff on goods entering the EU from non-Member States. Once third countries have paid the customs duties, which should be the same in all EU countries, their goods will be in free circulation in the Member States.

Question 14

Common market

Answer 14

Common market (now referred to as the internal market or the single market): a form of economic integration established by the European Community. The aim was to integrate the national markets of the Member States into a single European market by removing barriers to trade between the Member States.

Question 15

Competition

Answer 15

Competition: the TFEU does not define competition, but it does prohibit certain practices that would restrain trade and obstruct fair competition.

Question 16

Concentration

Answer 16

Concentration: here, where a merger would create a large market share.

Question 17

Concerted practice

Answer 17

Concerted practice: practical co-operation between undertakings instead of the risks of competition. The term covers all forms of collusion that fall short of being classed as actual agreement.

Question 18

Council of the European Union

Answer 18

Council of the European Union: also known as the EU Council and sometimes still referred to as the Council of Ministers. It carries out policy-making and coordinating functions. It has a legislative function and adopts secondary legislation mainly together with the European Parliament. It also approves the EU’s budget together with the European Parliament.

Question 19

Court of Auditors

Answer 19

Court of Auditors: the Court is not a judicial court hearing cases, but a financial office which examines the revenue and expenditure of the EU.

Question 20

Court of Justice

Answer 20

Court of Justice: the European Court of Justice is the senior court of the Court of Justice of the European Union. It ensures that EU law is observed. It hears actions and provides preliminary rulings on preliminary references.

Question 21

Court of Justice of the European Union

Answer 21

Court of Justice of the European Union: this Court consists of the Court of Justice, the General Court and the Civil Service Tribunal.

Question 22

Customs duty

Answer 22

Customs duty: a charge levied on goods because they have crossed the frontier

Question 23

Dassonville formula

Answer 23

Dassonville formula: all trading rules that hinder trade within the EU are considered as measures having an effect equivalent to quantitative restrictions unless they fall within the ‘rule of reason’.

Question 24

Decisions

Answer 24

Decisions: binding on those to whom they are addressed.

Question 25

Dependent right

Answer 25

Dependent right: this is granted to the family of a person with an independent right of residence. They may lose a dependent right to reside if the one who has the independent right gives up that right or the relationship ends.

Question 26

Derogation

Answer 26

Derogation: partial release from a law.

Question 27

Direct applicability

Answer 27

Direct applicability: a provision becomes operative in a Member State immediately without the need for the national legislature to pass implementing legislation to incorporate it into national law.

Question 28

Direct effect

Answer 28

Direct effect: the EU legal order differs from international law in that it can create rights for citizens that are enforceable before national courts. Where there is vertical direct effect, there is an obligation on an organ of state, with a corresponding right of individuals. Horizontal direct effect means that an individual may call upon an obligation owed by another individual.

Question 29

Directives

Answer 29

Directives: binding as to the result to be achieved. National authorities are responsible for transposing them into national law.

Question 30

Distinctly applicable

Answer 30

Distinctly applicable: measures applicable only to imports.

Question 31

Dominant position

Answer 31

Dominant position: the power to exclude effective competition. The greater the market share an undertaking has in the relevant market, the greater the likelihood of dominance. A dominant position is not in itself illegal, only the abuse of that position.

Question 32

Economic and monetary union

Answer 32

Economic and monetary union: the adoption of an economic policy is based on coordination between the economic policies of the Member States, on the internal market and on common objectives. The activities of the economic and monetary union include a single currency (the euro), to ensure the free movement of capital within the union and controls on national deficits.

Question 33

Enlargement

Answer 33

Enlargement: term used to describe the growth of the EU through the accession of new Member States.

Question 34

European Central Bank

Answer 34

European Central Bank: is one of the institutions of the economic and monetary union. Together with national central banks, it forms part of the organisation known as the European System of Central Banks. It is responsible for issuing euros and has the power to make certain regulations. It can make the decisions necessary for carrying out the tasks of the European System of Central Banks and it can instruct national central banks.

Question 35

European Commission

Answer 35

European Commission: the European Commission initiates policy and proposals for legislation to be adopted by the Council of the European Union and the European Parliament. It implements agreed policies and acts as the guardian of the Treaties.

Question 36

European Community

Answer 36

European Community: in the 1950s, treaties between a number of European states established a community for coal and steel, a community for atomic energy and a European Economic Community. After the Merger Treaty all three communities shared the same institutions and the framework became known as the European Community (EC). The EC remained as one of the three pillars within the European Union after the Treaty of Maastricht. However, with the ratification of the Treaty of Lisbon, which saw the end of the three-pillar structure, the term European Community has disappeared and has been replaced by European Union.

Question 37

European Constitution

Answer 37

European Constitution: the Constitution was signed by the Member governments in June 2004. However, it was not ratified by all the Member States: it was rejected in referendums held by several of the Member States. The Constitution as such was then abandoned, but certain elements of the Constitution, perhaps most importantly the provision for legal personality for the EU, would be ratified by the Treaty of Lisbon.

Question 38

European Council

Answer 38

European Council: a meeting of the heads of government of the Member States to help define the general political direction of the EU. Since the Treaty of Lisbon, it has become a formal institution of the EU.

Question 39

European Parliament

Answer 39

European Parliament: this Parliament is directly elected and participates in the legislative process. It also has several supervisory functions: the Commission is accountable to Parliament and, together with the Council of the European Union, it exercises budgetary supervision.

Question 40

European Union

Answer 40

European Union: the EU, as set up under the Treaty of Maastricht, comprised not only the European Community, but also two other pillars. These other pillars were foreign and security policy, and co-operation in judicial and criminal matters. These three pillars were intended to form a unitary institutional framework. Under the Treaty of Lisbon, however, the three-pillar system was dismantled. The European Union, as one united entity, assumed legal personality.

Question 41

Family

Answer 41

Family (of an EU worker): this includes spouse, children plus descendants if under twenty-one years, parents, grandparents and other ascendants if dependent on the worker.

Question 42

Force majeure

Answer 42

Force majeure: an event outside the control of the parties to an agreement

Question 43

Free circulation

Answer 43

Free circulation: see common customs tariff Common customs tariff: a common tariff on goods entering the EU from non-Member States. Once third countries have paid the customs duties, which should be the same in all EU countries, their goods will be in free circulation in the Member States.

Question 44

Freedom of establishment

Answer 44

Freedom of establishment: this freedom allows both natural persons and companies to set up a business in a Member State other than their own.

Question 45

Freedom to provide services

Answer 45

Freedom to provide services: services may be provided in a Member State by nationals of a different Member State. This freedom is more geared up to the self-employed rather than ‘workers’.

Question 46

Free movement of capital and payments

Answer 46

Free movement of capital and payments: the basic principle is that there must be full freedom of capital movements and payments between Member States and between Member States and third countries.

Question 47

Free movement of goods

Answer 47

Free movement of goods: the European Community established a common market, which could only be achieved by taking down any internal barriers to trade within the EC.

Question 48

Free movement of workers

Answer 48

Free movement of workers: a worker in one Member State generally has the right to accept work in another Member State.

Question 49

General Court

Answer 49

General Court: this court, which was first known as the Court of First Instance, was created to assist the European Court of Justice. Its competence has increased, as it now may hear all direct actions brought by private parties, but it does not have the competence to give preliminary rulings.

Question 50

General principles of EU law

Answer 50

General principles of EU law: general principles of law, originating inter alia from international law and the national systems of various Member States, are applied uniformly throughout the EU. Examples of such principles are proportionality, legal certainty, procedural rights, and the principle of equality.

Question 51

Genuine tax

Answer 51

Genuine tax: internal duties are applied to a certain category of products, regardless of the origin of the products.

Question 52

Goods

Answer 52

Goods: ECJ case law has defined a good as being something of monetary value that can constitute the object of commercial transactions.

Question 53

Harmonisation

Answer 53

Harmonisation (or approximation): to bring the laws of the various Member States into line.

Question 54

Horizontal agreements

Answer 54

Horizontal agreements: agreements between producers.

Question 55

Independent right

Answer 55

Independent right: an independent right of residence in the country in which an EU worker has accepted employment.

Question 56

Indistinctly applicable

Answer 56

Indistinctly applicable: measures applicable to domestic and imported products alike.

Question 57

Internal market

Answer 57

Internal market: the TFEU, which came into force in 2009 as part of the Treaty of Lisbon, refers to the internal market, rather than to the common market.

Question 58

Judge rapporteur

Answer 58

Judge rapporteur: is asked to produce a preliminary report on a case. It is this preliminary report together with the views of the Advocate General that help the court to determine which issues have to be addressed.

Question 59

Legal certainty

Answer 59

Legal certainty: a general principle of EU law. Certainty is achieved by non-retro-activity: legislation is not expected to be applicable in the period before it became law. Law should also not frustrate the legitimate expectations of its citizens.

Question 60

Merger

Answer 60

Merger: means that a company (or more than one) becomes a part of or merges with another company. The former company ceases to exist and the latter acquires all of the assets, liabilities, franchises and power of that company. The European ommission may stop a merger if it would significantly impede competition within the EU.

Question 61

Mutual recognition principle

Answer 61

Mutual recognition principle: it is presumed that goods that have been lawfully marketed in one Member State will already comply with the mandatory requirements of other Member States.

Question 62

Opinions

Answer 62

Opinions: are non-binding guidelines issued by the EU.

Question 63

Ordinary legislative procedure

Answer 63

Ordinary legislative procedure: this is the main legislative procedure of the EU legislative system. It was first introduced under the Treaty of Maastricht and called co-decision. Since the Treaty of Lisbon, it is called the ordinary legislative procedure. Legislation can only be adopted if it has been agreed upon by both the Council of the European Union and the European Parliament.

Question 64

Override

Answer 64

Override: with respect to the EU, the principle of supremacy means that EU law takes precedence over the national law of the Member States in areas covered by EU competence.

Question 65

Pillar

Answer 65

Pillar: in the context of the European Union, this term was used to denote the elements that made up the Union. The three pillars of the EU were: the EC, foreign and security policy, and co-operation in justice and criminal matters. The pillar system was dismantled by the Treaty of Lisbon.

Question 66

Preliminary reference

Answer 66

Preliminary reference: is a request by a national court of a Member State to the European Court of Justice to give a ruling on a question of interpretation and validity of EU law.

Question 67

Preliminary ruling

Answer 67

Preliminary ruling: is the answer given by the European Court of Justice concerning a question on the validity or interpretation of EU law.

Question 68

Primary sources of EU law

Answer 68

Primary sources of EU law: consist of the founding treaties and their amendments.

Question 69

Principle of conferral

Answer 69

Principle of conferral: the limits of EU authority are governed by the principle of conferral. This doctrine of conferred powers means that the EU shall act only within the competences conferred upon it by the Member States in the Treaties in order to obtain the objects set down in the Treaties. Under the Treaty of Lisbon, the fields of activity in which the EU has competence were set down. Competences that have not been conferred upon the EU by the Treaties remain within the authority of the Member States.

Question 70

Principle of equality

Answer 70

Principle of equality: general principle of EU law that makes various types of discrimination illegal, for example, sexual discrimination.

Question 71

Principle of proportionality

Answer 71

Principle of proportionality: a general principle of EU law stating that a public authority may not impose obligations on a citizen except to the extent to which they are strictly necessary or proportionate to the aim to be achieved. Furthermore, under this principle the content and form of EU action should not exceed what is necessary to achieve the objectives of the Treaties.

Question 72

Principle of subsidiarity

Answer 72

Principle of subsidiarity: the EU has only the right to deal with those matters that fall within the exclusive EU competence. Matters that are not covered by the EU competence remain the prerogative of the individual Member States. The EU will only act in areas which do not fall within its exclusive competence if the proposed action cannot be achieved by the Member States individually and, therefore, it can better be achieved by the EU.

Question 73

Principle of supremacy

Answer 73

Principle of supremacy: where there is EU competence, EU law cannot be overridden by national legal provisions, regardless of whether these provisions were drawn up earlier or later than the EU law.

Question 74

Procedural rights

Answer 74

Procedural rights: principle of EU law. These rights cover the principles of the right to be heard and of due process.

Question 75

Protection of human rights

Answer 75

Protection of human rights: principle of EU law in accordance with the European Convention on Human Rights. See also the EU Charter of Fundamental Rights.

Question 76

Qualified majority

Answer 76

Qualified majority: a weighted voting procedure where the vote of each Member State reflects the size of the population.

Question 77

Quantitative restrictions

Answer 77

Quantitative restrictions: a national measure that places a physical/non-pecuniary restriction on the amount of goods that may enter or leave a state, for example, a quota.

Question 78

Real work

Answer 78

Real work: in the context of the free movement of workers, it means that the work must be effective work and not work created to rehabilitate someone.

Question 79

Recommendations

Answer 79

Recommendations: like opinions, recommendations are not binding but are only persuasive guidelines.

Question 80

Regulations

Answer 80

Regulations: laws that are binding in their entirety and directly applicable in all Member States.

Question 81

Residence permit

Answer 81

Residence permit: gives a person the legal right to live in a country other than the country of which he is a citizen.

Question 82

Restrictive practices

Answer 82

Restrictive practices: those that prevent fair competition. Such practices would include any agreements that would prevent or distort competition within the internal market.

Question 83

Revoke

Answer 83

Revoke: to annul, for example, to repeal a piece of legislation so that it is no longer in force.

Question 84

Secondary sources of law

Answer 84

Secondary sources of law: the major EC Treaties delegated the power to legislate to certain institutions. The law made by these institutions is classed as secondary legislation.

Question 85

Severable contract

Answer 85

Severable contract: where a contract is treated as having several independent agreements. The failure of one of those agreements, for example, because the clause is void, does not render the entire agreement inoperative.

Question 86

Special legislative procedure

Answer 86

Special legislative procedure: certain legislative proposals require a consultation procedure or a consent procedure. The consultation procedure, used in a limited number of legislative areas, such as internal market exemptions and competition law, requires the Council of the European Union to ask the European Parliament’s opinion on proposed legislation before it can be adopted. The consent procedure gives the European Parliament the right of veto. It was formerly known as the assent procedure.

Question 87

Subsidiary institutions

Answer 87

Subsidiary institutions: in addition to the major EU institutions, there are a number of other important organisations, for example, the European ombudsman, the Committee of Permanent Representatives and the Economic and Social Committee.

Question 88

Subsidies

Answer 88

Subsidies: here, a subsidy is a payment by a Member State to producers or distributors. It is intended to reduce the prices paid by consumers in order to stimulate domestic production. This is usually prohibited.

Question 89

Treaty of Lisbon

Answer 89

Treaty of Lisbon: this treaty, which came into force in 2009, was a response to the failure to secure ratification for the Constitutional Treaty. It replaces the previous framework. It consists of two treaties: the Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU). The TFEU replaces the EC Treaty. Articles from previous treaties that have been incorporated in these two treaties may have assumed a different number, for example, Article 81 EC Treaty is now Article 101 TFEU.

Question 90

Undertaking

Answer 90

Undertaking: this is a natural or legal person carrying on commercial or economic activity. It includes a company, partnership, sole trader and association.

Question 91

Vertical agreements

Answer 91

Vertical agreements: agreements between a producer and distributors.

Question 92

Worker

Answer 92

Worker: a person, who is a citizen of a Member State, in genuine and effective employment and performing services for an employer under his direction and control in return for remuneration.