1. 1 COMPETITION LAW ENFORCEMENT Professor José Luís da Cruz Vilaça Catholic University, Lisbon LL.M – Advanced Master of Laws 22/23 & 29/30 January 2009

2. 2 GENERAL OUTLINE OF THE COURSE I.PUBLIC ENFORCEMENT OF ARTICLES 81 AND 82 From Regulation 17 to Regulation 1/2003 The “Modernisation Regulation” – an overview The Commission’s enforcement powers – dawn raids The role of the NCA’s; articulation with the Commission - the ECN Judicial review II.PRIVATE ENFORCEMENT Damages actions Euro-defence Arbitration Proposals for reform

3. 3 EU Legislation Council Regulation (EC) No 1/2003 of 16 December 2002, on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty (Modernisation Regulation)– OJ L 1, 4.1.2003, p. 1 Commission Regulation (EC) No 773/2004 of 7 April 2004, relating to the conduct of proceedings by the Commission pursuant to Articles 81 and 82 of the EC Treaty (Implementing Regulation) – OJ L 123, 27.4.2004, p. 18 Commission Regulation (EC) No 622/2008 of 30 June 2008, amending Reg. 773/2004, as regards the conduct of settlement procedures in cartel cases – OJ L 171, 1.7.2008, p. 3 Council Regulation No 17 of 6 February 1962, First Regulation implementing Articles 85 and 86 of the Treaty – OJ 13, 21.2.1962, p. 204. Regulation Commission Regulation No 99/63/EEC of 25 July 1963, on the hearings provided for in Article 19(1) and (2) of Council Regulation No 17.

4. 4 Portuguese legislation  Law No 18/2003 of 11.6, as amended by Decree-law 219/2006 of 2.11.2, Decree-law 18/2008 of 29.1 and Law 52/2008 of 28.8 (Portuguese Competition Act)  Decree-law 10/2003 of 11.6 (Statutes of the PCA)  Decree-law 30/2004 of 6.2, on the PCA’s revenues  Law 39/2006 of 25.8, on leniency  Regulation 9/2005 of 3.2 of the PCA, on the procedure of notification for assessment of agreements under Article 5(2) of the Competition Act

5. 5 Commission Notices and Communications Public enforcement Notice on cooperation within the network of competition authorities – OJ C 101/03, 27.4.2004, p. 43 On the cooperation bewtween the Commission and the courts of the EU Member States in the Application of Articles 81 and 82 – OJ C 101/04, 27.4.2004, p. 54 On the handling of complaints by the Commission under Articles 81 and 82 – C 101/05, 27.4.2004, p. 65 On informal guidance relating to novel questions concerning Articles 81 and 82 that arise in individual cases (Guidance letters) – OJ C 101/06, 27.4.2004, p. 78 On the rules for access to the Commission file in cases pursuant to Articles 81 and 82, Articles 53, 54 and 57 of the EEA Agreement and Council Regulation (EC) No 139/2004 – OJ C 325/07, 22.12.2005, p. 7 Guidelines on the effect on trade – OJ C 101/07, 27.4.2004, p. 81 On the application of Article 81(3) – OJ C 101/08, 27.4.2004, p. 97 On the method of setting fines – OJ C 210/02, 1.9.2006, p. 2 Notice on Immunity from fines and reduction of fines in cartel cases – OJ C 298/11, 8.12.2006, p. 17 Guidance on the application of Article 82 to abusive exclusionary conduct by dominant undertakings – COM(2008), 3.12.2008 (under linguistic revision) Notice on the conduct of settlement procedures – OJ C 167, 2.7.2008, p. 1

6. 6 Public enforcement A. From Regulation 17 to Regulation 1/2003 Regulation 17/1962 – A system of control centralised in the Commission A general principle of prohibition of anti-competitive agreements without prejudice to an exemption based upon a mandatory notification to the Commission The need for a consistent practice and a common competition culture in Europe Drawbacks and shortcomings of the old system

7. 7 Public enforcement B. Overview of the “Modernisation Regulation Basic principles of the Regulation: direct effect of Article 81(3); a system of “legal exception”; self assessment and the issue of legal security; decentralised application – Article 1 Burden of proof – Article 2 Relation with national law Powers of Commission, NCAs, national courts – Articles 4. 5 and 6 The legal basis for the Regulation Supporting measures: Regulation No 773/2004; Commission Notices

8. 8 Public enforcement C. The Modernisation Regulation – Commission Decisions Finding and termination of infringements – Article 7 Obligation to act? - Automec Remedies – behavioural (Article 82 - Commercial Solvents, Microsoft; Article 81 - Automec, Atlantic Container Line) and structural Past infringements Complainants Interim measures (Article 8) – Camera Care, Ford Werke, Ecosystem, Sealink/Holyhead, IMS Health Commitments (Article 9) – substantive rules & procedure Finding of inapplicability – Article 10 Informal guidance relating to novel questions Leniency and settlements for cartel cases

9. 9 Commission Notices and Communications Private enforcement Notice on the cooperation bewtween the Commission and the courts of the EU Member States in the Application of Articles 81 and 82 – OJ C 101/04, 27.4.2004, p. 54 White Paper on Damages actions for breach of the EC antitrust rules – COM 2008 165 final, 2.4.2008

10. 10 EU CASE-LAW Relationship between EC law – in particular Articles 81 & 82 – and national law  Van Gend en Loos, 26/62, 5.3.1963 (Direct effect)  Costa v. ENEL, 6/64, 15.7.1964 (Primacy)  Simmenthal, 106/77, 9.3.1978 (Primacy)  Walt Wilhem, 14/68, 13.2.1969 (EU & national competition laws)  Masterfoods, C-344/98, 14.12.2000 (Legal effect of Commission’s decisions) Cooperation between the Commission and national courts  Delimitis, C-234/89, 28.2.1991 Commission’s Enforcement Powers and Duties  Automec, T-24/90, 18.9.1992 (Priorities in examining complaints; Community interest)  Commercial Solvents, 6 & 7/73, 6.3.1974 (Behavioural remedies)  Microsoft, T-201/04, 17.9.2007 (Behavioural & structural remedies)  Commitments: Coca-Cola, 22.6.2005 (COMP/39.116/B-2); Repsol, 12.4.2006 (COMP/B-1/38348); Distrigaz, (COMP/B-1/37966)  Camera Care, 792/79 R, 17.1980 (Interim measures)  La Cinq, T-44/90, 24.1.1992 (Interim measures)

11. 11 EU CASE-LAW Commission’s Powers of Inspection  National Panasonic, 136/79, 26.6.1980 (No need for prior voluntary inspection)  SGL Carbon, C-301/04 P, 29.6.2006 (Production of documents in a Commission investigation) Rights of defence  Orkem, 374/87, & Solvay, 27/88, 18.10.1989 (Privilege against self- incrimination)  AM&S, 155/79, 18.5.1982 (Professional legal privilege)  Hilti, T-30/89, 12.12.1991 (Professional legal privilege)  Akzo Nobel, T-125/03 & T-253/03 (Professional legal privilege)

12. 12 EU CASE-LAW Private Enforcement  Courage v Crehan, C-453/99, 20.9.2001  Manfredi, C-295/04 to C-298/04, 13.7.2006

13. 13 TEXTBOOKS & ARTICLES Richard Whish, Competition Law, 6th ed., Oxford University Press, 2009, Ch. 7 & 8 C.S. Kerse & N. Khan, EC Antitrust Procedure, 5th ed. Sweet & Maxwell, 2005 J. L. da Cruz Vilaça & M. Gorjão-Henriques, Código da Concorrência, Almedina, 2004 J. L. da Cruz Vilaça, Direito Comunitário e Direito Interno: Decisão da Comissão baseada no artigo 21.º do Regulamento Concentrações - o caso Champallimaud, in Cadernos de Justiça Administrativa, 29 – Set.º/Out.º 2001