3 The Regulatory and Institutional Framework of EU Cartel Law

Abstract

This chapter deals with the institutional and regulatory framework that applies to cartels in the European Union (EU), going over both the substantive and procedural rules. The key legal basis for the prosecution of cartels resides under Article 101(1) of the Treaty on the Functioning of the European Union (TFEU), as interpreted by the case law of the EU courts. Article 101 TFEU is a three-pronged provision. First, the chapter shows how Article 101(1) TFEU establishes a prohibition rule providing that any agreement between undertakings which may affect trade between Member States and which restricts competition is to be deemed incompatible with the internal market. Next, the chapter takes a look at how Article 101(2) TFEU declares that agreements deemed incompatible pursuant to Article 101(1) TFEU are null and void. The ways in which Article 101(3) TFEU embodies an exception to the default prohibition rule, which defuses the application of Article 101(1) for agreements that bring a positive net contribution to consumer welfare, is also discussed.