2. GREETINGS TO CHARTERED ACCOUNTANTS FOR ICAIS POST QUALIFICATION COURSE VIDEO CONFERENCE FROM HYDERABAD 26 AUGUST 2005

3. Copyright - Dr. S. Chakravarthy2 COMPETITION REGIME IN THE EUROPEAN UNION PRESENTATION BY Dr.S.CHAKRAVARTHY (Profession : Civil Servant) Member, High Level Committee on Competition Policy and Law And Member of Committee for Drafting the Law. PRESENTLY, ADVISER/CONSULTANT ON COMPETITION POLICY AND LAW HYDERABAD, INDIA

4. Copyright - Dr. S. Chakravarthy3 EUROPEAN COMMUNITY – COMMON OBJECTIVES | | EUROPEAN COMMUNITY OPERATES COMPETITION LAWS OF MEMBER STATES WITH THE FOLLOWING COMMON OBJECTIVES: 1. OPTIMAL ALLOCATION OF ECONOMIC RESOURCES 2. CONSUMER WELFARE 3. EFFICIENT PROVISION OF SERVICES OF GENERAL ECONOMIC INTEREST TO THE PUBLIC | IN ADDITION EC SEEKS TO PROMOTE INTEGRATION OF MARKETS INTO ONE SINGLE MARKET

5. Copyright - Dr. S. Chakravarthy4 EC COMPETITION LAWS ROOT PEG TREATY OF ROME, 1957 IN PARTICULAR, ARTICLE 81 (OLD ARTICLE 85) DEALING WITH UNLAWFUL AGREEMENTS AND ARTICLE 82 (OLD ARTICLE 86) DEALING WITH PROHIBITIONS AND ABUSE OF DOMINANCE.

6. Copyright - Dr. S. Chakravarthy5 ARTICLE 81 OF THE TREATY ARTICLE 81 ESSENTIALLY OUTLAWS UNLAWFUL AGREEMENTS GENERAL PROHIBITION OF AGREEMENTS INCOMPATIBLE WITH THE COMMON MARKET GENERAL PROHIBITION OF CONCERTED PRACTICES THAT AFFECT, PREVENT, RESTRICT OR DISTORT COMPETITION WITHIN THE COMMON MARKET (Eg. PRICE FIXING, LIMITING PRODUCTION, LIMITING TECHNICAL DEVELOPMENT ETC.) GENERAL EXEMPTIONS FOR AGREEMENTS (INDIVIDUAL AND CATEGORIES) WHICH CONTRIBUTE TO IMPROVING PRODUCTION AND DISTRIBUTION, PROMOTING ECONOMIC PROGRESS ETC)

7. Copyright - Dr. S. Chakravarthy6 ARTICLE 82 OF THE TREATY ARTICLE 82 CONTAINS A GENERAL PROVISION AND GOVERNS ANY ABUSE OF DOMINANCE WITHIN THE COMMON MARKET SUCH ABUSES INCLUDE: ã IMPOSING UNFAIR PURCHASE OR SALE PRICES ã LIMITING PRODUCTION ã LIMITING TECHNICAL DEVELOPMENT ã LIMITING MARKETS ã IMPOSING DISCRIMINATORY CONDITIONS ã TIE - IN PURCHASE OR SALE

8. Copyright - Dr. S. Chakravarthy7 EU MERGERS A MERGER WITH A COMMUNITY DIMENSION MUST BE NOTIFIED TO THE EUROPEAN COMMISSION WITHIN A WEEK AFTER THE CONCLUSION OF THE AGREEMENT PROVIDED THE TURNOVER OF THE COMPANIES EXCEEDS CERTAIN THRESHOLDS IF THE MERGER CREATES OR STRENGTHENS A DOMINANT POSITION AND SIGNIFICANTLY IMPEDES EFFECTIVE COMPETITION IN THE COMMON MARKET IT WILL NOT BE ALLOWED

9. Copyright - Dr. S. Chakravarthy8 STATE AID IN EU ARTICLES 87 TO 89 OF THE TREATY DEAL WITH STATE AID EUROPEAN COMMISSION MUST BE NOTIFIED BY THE EU MEMBER STATES IF THEY INTEND TO GRANT STATE AID EC HAS THE POWER TO GRANT CLEARANCE FOR STATE AID IF IT DOES NOT INFRINGE THE TREATY RULES. LIKEWISE, IT CAN REFUSE CLEARANCE IF TREATY RULES ARE INFRINGED

10. Copyright - Dr. S. Chakravarthy9 EUROPEAN COMMISSION IN THE EU, THE EUROPEAN COMMISSION IS THE PRIMARY COMPETITION ENFORCEMENT AGENCY. WITHIN THE EC, THE RESPONSIBILITY FOR COMPETITION POLICY RESTS WITH THE COMMISSIONER FOR COMPETITION. EACH MEMBER STATE APPOINTS A COMMISSIONER TO THE COLLEGE OF COMMISSIONERS HE IS ASSISTED BY THE DIRECTOR GENERAL FOR COMPETITION. ALL ECS DECISIONS ARE SUBJECT TO JUDICIAL REVIEW BY THE EUS LEGAL SYSTEM.

11. Copyright - Dr. S. Chakravarthy10 CONSTITUTION OF COMMISSIONERS MEMBERS OF THE COLLEGE OF COMMISSIONERS ARE APPOINTED FOR 5 YEARS RENEWAL OF APPOINTMENT OF A MEMBER IS PERMISSIBLE THE COMMISSIONER RESPONSIBLE FOR COMPETITION MATTERS IS THE ONLY POLITICAL APPOINTMENT (NOMINATED BY THE PRESIDENT OF THE COMMISSION AND APPOINTED BY EU COUNCIL)

12. Copyright - Dr. S. Chakravarthy11 DIRECTORATE GENERAL OF COMPETITION DG COMP ASSISTS THE COMMISSIONER FOR COMPETITION ON ALL COMPETITION MATTERS. THE DIRECTORATE IS ORGANISED INTO 8 ADMINISTRATIVE DIRECTORATES, EACH HEADED BY A DIRECTOR. THE DIRECTORATES ARE RESPONSIBLE FOR GENERAL POLICY, MERGERS, PROHIBITION OF ANTI-COMPETITIVE AGREEMENTS, ABUSE OF DOMINANCE, STATE AID RULES ETC

13. Copyright - Dr. S. Chakravarthy12 POWERS OF THE COMMISSION THE COMMISSION HAS THE POWER TO: «INVESTIGATE APPLICATIONS AND MAKE DECISIONS GRANTING CLEARANCE OR EXEMPTIONS OF INDIVIDUAL AGREEMENTS AND CLEARANCE OF CONDUCT «GRANT BLOCK EXEMPTIONS FROM THE PROHIBITION ON ANTI-COMPETITIVE AGREEMENTS, IF BENEFITS OUTWEIGH THEIR ANTI-COMPETITIVE EFFECTS. «CONDUCT INVESTIGATIONS INTO INFRINGEMENTS OF ARTICLES 81 & 82 «COMMENCE PROCEEDINGS AGAINST PARTIES INFRINGING THE RULES «ISSUE INTERIM ORDERS – TEMPORARY INJUNCTIONS «ISSUE FINAL DECISIONS FOR TERMINATION OF INFRINGEMENTS AND IMPOSITION OF FINES

14. Copyright - Dr. S. Chakravarthy13 INDEPENDENCE AND REVIEW PROVISIONS O THE DECISIONS OF THE COMMISSION ARE NOT SUBJECT TO REVIEW OF ANY BODY OTHER THAN EU COURTS O APPEALS AGAINST ECS DECISIONS LIE TO THE COURT OF FIRST INSTANCE (CFI) O APPEALS AGAINST DECISIONS OF CFI ON POINTS OF LAW ONLY, LIE TO THE EUROPEAN COURT OF JUSTICE

15. Copyright - Dr. S. Chakravarthy14 SECTORAL REGULATORS INDUSTRY – SPECIFIC REGULATORS DO NOT HAVE COMPETITION POWERS

16. THANK YOU FOR YOUR KIND ATTENTION Copyright Dr. S. Chakravarthy