Extraterritorial Application of EC Competition Law — Comments and Reflections

Abstract

The competition rules of the European Community are set out in Articles 85 and 86 of the Treaty of Rome. The first forbids, as incompatible with the common market, agreements that may affect trade between member states and restrict competition; the second the abuse of a dominant position. Articles 85 and 86 are the starting point of an intricate regulatory system which affects not only naked horizontal cartels and abusive behaviour by dominant undertakings but also distribution agreements, franchise agreements, the licensing and exercise of intellectual property rights, joint ventures and other forms of collaboration between undertakings.This article attempts to denote the scope of the Community's jurisdiction in competition law matters as it is shaped and moulded in the judgments of the European Court of Justice (hereinafter referred to as the “Court”) as well as to evaluate whether the scope of jurisdiction awarded by the traditional jurisdictional tests can be justified on grounds other than legal conservatism.