By A. E. Walsh, John Paxton (auth.)
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Additional info for Competition Policy: European and International Trends and Practices
6. 'Stahlishcd in the tcrntury oi thl' curnmon market. II. ~iou or cot~cerltd practice: 1. ; otherwise. (a) Is there only an outline agrecml'nt or outline (lcci~ion?
Article 86 of the Rome Treaty relates to the •abuse of a dominant position'. The conditions for the application of Article 86 are: The existence of a dominant position in the Common Market or a substantial part thereof, which is abused in a way likely to affect trade between member States. If these criteria exist in any agreement, the agreement is automatically prohibited. The prohibition can be enforced by fines under Article 87 (2) (a) of the Treaty. In contrast with both the UK and USA rules, the creation by proper means of a dominant position is not subject to restriction in the Community except to the extent that it is made between enterprises for the elimination of competition without countervailing advantages to the consumer.
Article 2. This Article defines the meaning of the word concentration for the purpose of the Regulation in terms which have proved their practical value over nearly twenty years in the Coal and Steel Community, during which time over 200 decisions on concentrations were taken. The definition centres on the question of how decision-making is achieved. Article 3 defines the powers of decision of the Commission in declaring that a proposed concentration is incompatible with the Common Market or orders the disbandment of any concentration that has already been effected.