Competition Law under EU Law

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Competition means that businesses are under constant pressure to be better than their competitors, in order to win customers. Competition acts as a driver for innovation and technological progress, and this improves consumer welfare. Therefore, the interests of consumers are at the heart of competition policy. In a competitive market, each firm tries to be “optimal” and attract consumers through lower prices and improve the quality of its products or services. With the help of consumers, authorities such as the European Commission can take more effective action to prevent or prohibit anti-competitive practices sometimes observed on the market. Competition law in the theoretical model in a society sellers produce homogeneous products and all relevant consumers are fully informed before buying a product. Some objectives of competition law is

  1. Workable competition, No prevention, restriction or distortion of competition, Low prices, Good quality, Protection of consumers, Economic efficiency, Protection of competitors, Protection of SMEs, Economic development of all geographical areas, Employment, Freedom of contract, Competitiveness on other markets, Democratic values ,Protection of internal market. Also EU competition law is primarily concerned with the problems that may occur when an undertaking or two or more undertakings have or obtain substantial market power (+ internal market) and undertakings that have substantial market power enjoy some of the benefits available to a true monopolist (Market power enables undertakings to limit output and raise prices, harmful to economic, efficiency and consumer welfare.

In EU accession include the Utmost importance of competition law – harmonization ,Stabilization and association agreement, Importance of implementation, Practice, Administrative capacity, Application of European law before accession Art 74 Croatian Competition act. EU competition law are includes Arts 101-106. Article 101 (ex Article 81 TEC): In this article prohibits what follows as not compromised. Substantially prevent any movement or decision of undertakings which may affect, restrict and restrain trade between countries negatively. Article 102 TFEU provides: Any operation undertakings of a dominant position into the internal market or in one of the significant part of it must be forbidden as Non-compromised energy to the internal market in so far as it may influence commerce between States. Such abuse may, in especially, consist in:

  1. According to EU Competition Law “Directly or indirectly commanding unfair market or selling prices or other unfair trading conditions; (b) Limiting manufacture, markets or technical growth to the prejudice of consumers; (c) Applying disparate conditions to parity transactions with other trading parties, therefrom placing them at a competitive disadvantage”.[1]Some “new markets” economy has resulted in the network externalities.

Network effect: Microsoft (2007): EU Competition defines that “In industries exhibiting strong network effects, consumer demand depends critically on expectations about future purchases. If consumers expect a firm with a strong reputation in the current (product) generation to succeed in the next generation, this will tend to be self-fulfilling as the consumers direct their purchases to the product that they believe will yield the greatest networks gains”[2] Article 106 (ex Article 86 TEC): In the case “of public undertakings and undertakings to which Member States grant special or exclusive rights,

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