EU Competition Law

Meaning of competition

Securing of competition in the singe market is one of basic values of European Union, also stated in the European Community treaty, article 3(1)g.[1] Therefore regulation of competition is one of the broadest in the EU law, basically concentrated in Chapter 1, Part 6 of the European Community treaty “Competition rules”[2], but also in the rest of the treaty indirectly questions of competition, procedures and involved institutions are reviewed. The term “competition” in the EC Treaty is not explained, and the very term in the legal science has come from economy. In the economy the term “competition” is explained as rivalry between two or more market participants, none of which has market power – none of market participants can influence prices, quality and turnover of goods. The competition in the market guarantees continuous activity of market participants, with the aim to survive to exist and to develop. The fear to vanish from the market makes its participants to search new solutions in offering their products, to make consumers choose exactly them. Competition can also be explained as a game, where the prize is ability to control the market, dictating rules both for other market participants and for consumers. The task of competition law is not to permit acquire of market control.

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1. EC Foundation Treaty as of 1957. Consolidated version. OJ 321 29.12.2006.
2. Ibid.