Business competition (EU)๐Ÿ‡ช๐Ÿ‡บ๐Ÿ‡จ๐Ÿ‡ณ

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Competition between businesses

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Unfair practices such as Illegal contacts and agreements, price fixing and market sharing are prohibited under EU competition rules. Read about what you can and cannot do to ensure you operate your business fairly, including rules on mergers and state aid.

You can report business practices that you think might restrict competition and make a claim for compensation if you can prove that your business has overpaid, suffered a loss of revenue due to actions by a cartel, or abuse of a dominant position in the market.

https://europa.eu/youreurope/business/selling-in-eu/competition-between-businesses/index_en.htm

Competition rules in the EU

The EU has strict rules protecting free competition. Under these rules, certain practices are prohibited.

If you infringe the EU’s competition rules, you could end up being fined as much as 10% of your annual worldwide turnover. In some EU countries individual managers of offending firms may face serious penalties, including prison.

EU competition rules apply directly in all EU countries – the courts in your country will uphold them. These rules apply not only to businesses but to all organisations engaged in economic activity (such as trade associations, industry groupings, etc).

You can read about some examples of EU competition cases on the DG Competition’s portal.

Illegal contacts and agreements

These agreements are known as cartels. They are forbidden because they restrict competition. They can take many forms, and need not be officially approved by the companies involved. The most common examples of these practices are:

  • Price fixing
  • Market sharing
  • Agreement on customer allocation
  • Agreement on production limitation
  • Distribution agreements between suppliers and re-sellers where, for example, the price charged to customers is imposed by the supplier

All agreements and exchanges of information between you and your competitors that reduce your strategic uncertainty in the market (around your production costs, turnover, capacity, marketing plans, etc.) can be seen as anti-competitive.

https://europa.eu/youreurope/business/selling-in-eu/competition-between-businesses/competition-rules-eu/index_en.htm

How to report anti-competitive behaviour?

If you come across business practices that might restrict competition, you can report them. If the situation is specific and limited to the country or area where you live, or involves no more than 3 other EU countries, start by contacting your national competition authority.

If you are unsure about the problem, you can contact the European Commission at: [email protected] or write to:

European Commission, Directorate General for Competition
Antitrust Registry
B-1049 Brussels, Belgium

If you think your company is involved in a cartel or other activity restricting competition, you should know that the first company to submit evidence of a cartel may receive total immunity from fines! (see the leniency programme).

Initial contact with the European Commission should be made by fax to +32 2 2994585 or by telephone to +32 2  2984190 or +32 2 2984191.

https://europa.eu/youreurope/business/selling-in-eu/competition-between-businesses/anti-competitive-behaviour/index_en.htm

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