ENFORCEMENT OF EU COMPETITION LAW AGAINST CARTEL PARTICIPANTS

Abstract

To better understand the concepts of the EU competition law it is necessary for one to understand the basic terminology. 

Firstly , one must understand that „cartels‟ in lay man‟s terms are agreements made between various firms or companies in order to regulate or „fix‟ prices of commodities or services within the market. For example if two companies producing rugs have an agreement to sell the rugs at fixed prices within the market. The main aim of such an agreement is to maximize profits and maintain a monopoly through the market as well as deter competitors from entering the sphere. 

However it is crucial to note that recommending prices are not illegal however retailing them is. Art.81 of the EU competition law deals with the aspects of defining cartels and how such agreements are void ab initio. The European Commission has been granted wide powers under Regulation 1/2003 to maintain undistorted competition by ensuring compliance with Article 101 of Treaty on the Functioning of the European Union (hereinafter TFEU) on the prohibition of concerted practices. The Commission investigates only the most „hard-core‟ international cartels. Investigations can be started on the Commission‟s own initiative, on complaint or based on a leniency application under which the first participant of the cartel to „blow the whistle‟ to the Commission receives total immunity. The collected evidence and proposed remedy are presented to the accused in a „statement of objections‟. The accused can access the investigative file and had an opportunity to reply in writing and at an oral hearing. The decision is adopted by the College of Commissioners on the recommendation of the Competition Commissioner.