Abstract

 
 
 This article points out the aim and purpose of the competition law in the European Union. Competition law is one of the most crucial and essential part of law that has to be implemented properly to support and ensure smooth functioning of the economy in the state. At the same time, brief explanation of the most anticompetitive agreements such as called “Cartel Agreements” are being described in the article. It is worth to point out the most important and restrictive types of agreements in details that can be seen on the market and within the European Union, that definitely needs special attention by the relevant competition authorities of the Member States.
 
 
Highlights
Competition is a one of the most important and fundamental mechanisms of the economy, which is considered to be an essential factor for economic growth and prosperity
It helps consumers get a good price and encourages firms to innovate by reducing slack; putting downward pressure on costs, it is a central driver for a productivity growth in the economy
Article 101 (81EC) of the treaty on the functioning of the European Union prohibits cartels and other agreements that could disrupt free competition and sets it out in following terms: “All agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between Member States and which have as their object or effect the prevention, restriction or distortion of competition within the internal market, and in particular those, which directly or indirectly fix prices, limit or control production, share markets or sources supply”[1]
Summary
Competition is a one of the most important and fundamental mechanisms of the economy, which is considered to be an essential factor for economic growth and prosperity. There are various types of cartel agreements to which competition can be restricted through: 1) price-fixing; 2) Market Sharing; 3) Collective Boycotts; 4) Exchange of Information; 5) Bid Rigging[2]; Price-fixing is an illegal agreement between companies in order to maximum or minimum prices to sell or buy goods.
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