Category Archives: E

Extra-territoriality

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Extra-territoriality

Extra-territoriality in the European Union Law

Concept of Extra-territoriality provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): Term normally used to describe the exercise by a sovereign State of jurisdiction over foreigners in respect of acts done outside the borders of that State. One could say that — in a very broad sense — the EU applies its competition rules in an extra-territorial manner when it makes use of the () effects doctrine.

EEA

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EEA

EEA in the European Union Law

Concept of EEA provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): EEA stands for European Economic Area. The EEA agreement, to which all EU Member States and the EFTA members Iceland, Liechtenstein and Norway are parties, entered into force on 1 January 1994. The objective of the agreement is to establish a dynamic and homogeneous European Economic Area, based in substance on common rules and equal conditions of competition. Formally, two separate legal systems coexist within the EEA: the EEA agreement is applied when trade between EFTA members and the Community or between EFTA States is affected; Community law when trade between EU Member States is affected. The EEA agreement is applied both by the European Commission and by the EFTA Surveillance Authority ( ESA).

The division of jurisdiction and a framework for cooperation between the Commission and ESA are laid down in the agreement.

(See: Decision of the Council and the Commission of 13 December 1993 on the conclusion of the agreement on the European Economic Area between the European Communities, their Member States and the Republic of Austria, the Republic of Finland, the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, the Kingdom of Sweden and the Swiss Confederation (94/1/ECSC, EC) (OJ L 1, 3.1.1994), as amended following the non-ratification of the EEA agreement by Switzerland.)

Economies of scope

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Economies of scope

Economies of scope in the European Union Law

Concept of Economies of scope provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): Economies of scope occur when firms achieve cost savings by increas-ing the variety of goods and services that they produce (joint produc-tion). Such effects arise when it is possible to share components and to use the same facilities and personnel to produce several products. For example, a bank may sell retail insurance products in its local branches in order to spread the fixed costs (like the office rent) over a larger number of products.

English clause

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English clause

English clause in the European Union Law

Concept of English clause provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): Contractual agreement in the context of () single branding arrange-ments between a supplier and its customer (for example, a retailer), allowing the latter to purchase a product from other suppliers on more favourable terms, unless the 'exclusive' supplier accepts to supply the product under the same advantageous conditions. Despite the greater freedom to contract enjoyed by the customer, 'English clauses' tend to increase transparency between competing suppliers and thus facilitate collusion, particularly where such clauses oblige the customer to reveal the name of the alternative source to his 'exclusive' supplier. For this reason, 'English clauses' have to be looked at in the light of the circumstances of the particular case to assess their conformity with competition law.

Enabling

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Enabling

Enabling regulation in the European Union Law

Concept of Enabling regulation provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): Legislative act by which the Council empowers the Commission to adopt secondary Community legislation (in the form of regulations or directives) such as, for example, block exemption regulations or implementing regulations.

ESA

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ESA

ESA in the European Union Law

Concept of ESA provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): ESA stands for EFTA Surveillance Authority. The authority was estab-lished under an agreement between the EFTA States, which contains basic provisions on the authority's organisation and lays down its tasks and competencies. The task of the ESA is to ensure, together with the European Commission, the fulfilment of the obligations set out in the () EEA agreement. The authority has far-reaching compe-tencies in the fields of competition and State aid.

Exclusive distribution

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Exclusive distribution

Exclusive distribution in the European Union Law

Concept of Exclusive distribution provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): A distribution system, in which a company grants exclusive rights on its products or services to another company. The most common forms include () single branding and/or exclusive territory rights, whereby a single distributor obtains the right to market a supplier's product in a specific territory. The supplier's purpose in granting exclusivity is normally to provide the distributor with incentives to promote the product and provide better service to customers. In most cases, the distributor's market power is limited by () inter-brand competition.

Effects doctrine

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Effects doctrine

Effects doctrine in the European Union Law

Concept of Effects doctrine provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): According to this doctrine, domestic competition laws are applicable to foreign firms — but also to domestic firms located outside the State's territory, when their behaviour or transactions produce an 'effect' within the domestic territory. The 'nationality' of firms is irrele-vant for the purposes of antitrust enforcement and the effects doctrine covers all firms irrespective of their nationality. The 'effects doctrine' was embraced by the Court of First Instance in the Gencor judgment when stating that the application of the merger regulation to a merger between companies located outside EU territory 'is justi-fied under public international law when it is foreseeable that a proposed concentration will have an immediate and substantial effect in the Community.' (See: Judgment of the Court of First Instance of 25.3.1999 in Case T-102/96, Gencor Ltd v Commission [1999] ECR, p. II-0753, at paragraphs 89–92.)

Exhaustion

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Exhaustion

Exhaustion in the European Union Law

Concept of Exhaustion provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): Intellectual property rights (IPRs) such as patents and trademarks give the developer certain exclusive rights over the exploitation of his work, such as in production and commerce. However, within the EU, the exclusive right cannot be used to artificially split up the common market along national borders. Therefore, the holder of an IPR in a Member State cannot oppose the import of a product protected by the IPR into that Member State, where that product was already put on the market in another Member State by the holder or with his consent. To this extent the holder's IPR is considered to be exhausted. The principle of exhaustion does not apply with regard to products put on the market in third countries.

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See also

  • Intellectual property right

Economies of scale

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Economies of scale

Economies of scale in the European Union Law

Concept of Economies of scale provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): Economies of scale occur when firms achieve per unit cost savings by producing more of a good or service (that is, when average costs decrease as output increases). Such effects arise when it is possible to spread fixed costs over a higher output. Examples of scale economies are the bigger lorry that transports more while still requir-ing only one driver or the larger plant that does not require more spare parts to be kept in stock than the smaller plant.