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Competition Law Notes

LPC Law Notes > Commercial and IP Notes

Updates Available  

A more recent version of these Competition Law notes – written by Cambridge And Oxilp And College Of Law students – is available here.

The following is a more accessble plain text extract of the PDF sample above, taken from our Commercial and IP Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Commercial Law Competition Law Why is competition law important?
o Agreements can be void / unenforceable if found to be anti-competitive o Substantial fines [e.g. 10% turnover]
o Creates bad publicity o Waste of management time What does competition law try to achieve?
o Single market throughout EU o Free movement of goods o Enforcement at both EU and MS level Distribution EU

Agency UK

1. o o o o

Art 101 Appreciable effect NAAT NOAMI Block Exemptions

1. Chapter I

2. Block exemption

2. Art 102 Enforced by Competition commission and the UK Office of Fair Trade

3. Chapter II

Enforced by OFT

Agency agreements will generally fall outside the scope of Art.101 [Para 12-21 Commission Notice May 2010 - confirms this]
Indications that the Agency Agreement is outside Art.101 scope:

Consider what the financial /
commercial risk borne by the agent is? If the agent does not have ownership of the goods then this is a strong indication that Art.101 will not apply.

Agent does not create / operate aftersales / repair / warranty services

Agent does not maintain at its own cost or risk stocks of the contract.

Article 101 Treaty of the Functioning of the European Union [TFEU]
Art 101 Criteria to satisfy =

1. Anti-competitive agreements
? Prohibits... "agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between MS and which have as their object or effect t prevention, restriction or distortion of competition within the internal market". Definition 1

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