Main objectives of the EU competition law and policy.

What is the purpose of competition laws? Competition law rests on the premise that markets produce their beneficial
effects only under conditions of effective competition. This is a famous motto of the economist Adam Smith in its
own Invisible hand. For benefits i mean the consumer welfare. So the aim of competition law is to increases economic
welfare, consumer welfar and european market integration and ensuring an efficient allocation of resources. Starting
from the assumpiton theat firs with market power are able to harm consumer welfare reducyng, for example output,
raising prices, degrading the quality of products on the market. In order to solce the problems, Competiton law
provides for a rules which are the main am to ensure the Competition. In fact Competition puts businesses under
constant pressure to offer the best possible range of goods at the best possible prices, because if they don't, consumers
have the choice to buy elsewhere.

In this direction, in order to preserve well-functioning product markets, authorities like the Commission must prevent or
correct anti-competitive behaviour, so the Commission monitors the following points, in according to the art. 101
TFEU:

 agreements between companies that restrict competition – cartels or other unfair arrangements in which
companies agree to avoid competing with each other and try to set their own rules;
 abuse of a dominant position – where a major player tries to squeeze competitorsout of the market

Delivering for consumers

Abuse of a dominant position

A company can restrict competition if it is in a position of strength on a given market. A dominant position is not in
itself anti-competitive, but if the company exploits this position to eliminate competition, it is considered to
have abused it.

Examples include:

 charging unreasonably high prices

 depriving smaller competitors of customers by selling at artificially low prices they can't compete with

 obstructing competitors in the market (or in another related market) by forcing consumers to buy a product which is
artificially related to a more popular, in-demand product

 refusing to deal with certain customers or offering special discounts to customers who buy all or most of their supplies
from the dominant company

 making the sale of one product conditional on the sale of another product.

 mergers (and other formal agreements whereby companies join forces permanently or temporarily) – legitimate
provided they expand markets and benefit consumers
 efforts to open markets up to competition (liberalisation) – in areas such as transport, energy, postal services
and telecommunications. Many of these sectors used to be controlled by state-run monopolies and it is
essential to ensure that liberalisation is done in a way that does not give an unfair advantage to these old
monopolies.
 financial support (state aid) for companies from EU governments – allowed provided it does not distort fair
and effective competition between companies in EU countries or harm the economy

 cooperation with national competition authorities in EU countries (who are also responsible for enforcing
aspects of EU competition law) – to ensure that EU competition law is applied in the same way across the EU

So, • Agreements, abuses and concentrations are said incompatible with the internal market rather than unlawful.
benefits of perfect competition are: lower prices, better products, wider choice, grater efficency than would be
obtained under condictions of monopoly.

What is competition law? Competition laws are not merely sets of substantive rules, but have procedural, institutional
and jurisdictional dimension .The enforcement of competition law in one country might also direct conflict with a
variety of laws, industry specific regulations and policies of other jurisdictions.

Obiettivi politicy

-Economic welfare, consumer welfare:

- European market integration

- ensuring an efficient allocation of resources