European Union Competition Law Essay Example | Topics and Well Written Essays - 1750 words

European Union Competition uprightness - Essay ExampleIt is evidently clear from the discussion that the surgical operation has to be facilitated by EU vertical harmonys and guided by the Competition law between the local distributors and the producers seeking new markets. The efficient distribution come with with proper after and pre-sales support makes part of pro-competitive process which ends up benefiting consumers. However, the vertical agreements between distributors and producers may also lead to the continuation of market partitioning and doing as barriers to new entrants whose presence would have intensified the market competition and resulted in a declining pressure on prices. Thus the vertical agreements between distributors and producers arse therefore be used in a pro-competitive way so as to promote the markets efficient distribution and integration. The differences in prices among extremity States that still exists offer incentives for new companies to access markets and also form barriers against new competition. This trend is as a result of the vertical agreements and constraints being pro-competitive in more or less cases. Enforcement priorities, modernization and more focus being put on effects has led the Competition Law actions to shy away from such agreements and lean towards suppressive practices which it considers being more serious. Since the enactment of Regulation No. 1/2003 as well as the prior notification requirement abolition, the EU Competitive Law decisions regarding vertical agreements have been almost non-existing concerning the Court of Justice litigation on this issue. 3. Following this premises, and without including the developments of major case laws in the adaptation of the new vertical agreement framework, the Law had correctly assumed that the Regulation No. 2790/1999 had come up with a system that was working smoothly. Consequently, the Regulation No. 330/2010 gave a full franchise to particular vertical a greement categories included with new guidelines4. Vertical agreements that are normally concluded between limited market power companies and lack competition hardcore restrictions are normally alleged to be pro-competitive and hence are covered by generalized exemption. Cross agreements which do not qualify concord to exemptions do not face automatic prohibition but included as considering the vertical agreements beneficial effects, the undertakings and turnover should not undergo different treatment. Resale cost Maintenance (RPM) The EU Competition law has had remarkable clashs on vertical agreements including the way it affects the RPM5. Most lawyers and economist have argued that the Competition Law has had pro-competitive effects on RPM in relation to vertical agreements. The Supreme Court had a take in this during the Leegin case where it ruled to its favor but with a washed-out majority. The Competition Law has had both anticompetitive and pro-competitive affects on RPM b ut the situations leading to pro-competitive effects have proved to be of great significance to vertical agreements. In a situation where there the RPM is strict, free-riding problems can be easily overcome in situations where pre-sale services are offered to consumers by retailers and go ahead to impact such services on the price6. In a similar situation, an another(prenominal) retailer may resolve on doing away with the pre-sale services, hence ends up pushchair the additional costs but supplies goods at a price that is reduced by taking advantage of the other retailers move to provide pore-sale services. In other