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Words: | Submitted: Mon Jun 19 2006
... of Rome. The 1957 Treaty of Rome was a major watershed for pan-European economics. With regards competition policy, the Treaty established the Commission as 'the authority in all matters of competition'3 and two articles were particularly relevant to competition. Article 85 was concerned with Anti-Competitive practices. This provision was concerned with any potential for firms to diminish, distort, restrict, or reduce trade or competition in the EU. Thus it covers price fixing, price discrimination, the pre-determination of market shares, and any controls on production, investment or technological development. Thus, it is often used against cartels. Agreements that infringe the Article are void and unenforceable. Article 86, was the provision of the treaty that prohibits abuses of a dominant position by businesses in the EU. It would, therefore, cover unfair pricing, restrictions on supply or technical development, tying clauses, or refusal to license intellectual property rights. These two Articles are highly significant. Article 85 ruled ...
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