European Union Competition Law
Specialized advice on European competition law
Free competition is one of the fundamental principles upon which the European Union’s internal market is built. The goal of EU regulations is to ensure that companies compete on a level playing field, preventing practices that could artificially restrict the market, harm consumers, or prevent new economic operators from entering the market.
In an increasingly globalized business environment, decisions made by companies, business groups, and industry associations can have significant implications from a competition law perspective. Commercial agreements, distribution strategies, business collaboration initiatives, or certain commercial policies may be subject to scrutiny by European and national competition authorities.
For this reason, companies operating in domestic or international markets must carefully analyze the impact of their actions from a regulatory perspective.
At IN DIEM, we provide specialized advice on European Union competition law, assisting companies and economic operators with risk prevention, the review of business practices, and the defense of their interests in administrative and judicial proceedings.
Our experience in international law and international operations enables us to take a comprehensive approach to the regulatory challenges arising from business activities in Europe.
Business Agreements and Restrictions on Competition
A key part of European competition law focuses on the regulation of agreements between companies.
Articles 101 and 102 of the TFEU
Article 101 of the Treaty on the Functioning of the European Union prohibits certain agreements that have as their object or effect the restriction of competition within the internal market.
Restrictive Agreements
Not all agreements between companies are illegal. Business collaboration is legitimate in many areas and is a common tool for conducting economic activities.
However, certain practices can raise competition concerns when they negatively affect the functioning of the market.
Among the situations that require special attention are the following:
- Price-fixing agreements.
- Market Share.
- Production limitations.
- Sensitive information sharing.
- Unjustified territorial restrictions.
- Certain distribution provisions.
Properly structuring international contracts and business agreements helps reduce regulatory risks and ensure compliance with European regulations.
Abuse of a Dominant Position and Unilateral Conduct
European regulations also govern certain actions taken by companies that hold a particularly significant market position.
Articles 101 and 102 of the TFEU
Article 102 of the Treaty on the Functioning of the European Union prohibits the abuse of a dominant position.
The existence of a dominant position does not in itself constitute a violation. What matters is whether the company abuses that position to restrict competition or harm other operators.
Among the behaviors that are typically analyzed, the following stand out:
- Predatory pricing.
- Unjustified refusal to hire.
- Trade Discrimination.
- Practices of exclusion.
- Inappropriate association of products or services.
The legal assessment of these situations requires a particularly complex economic and regulatory analysis.
For this reason, it is advisable to seek expert advice before implementing certain business strategies in sensitive markets.
Investigations and Proceedings Before Competition Authorities
European Commission
Competition authorities have broad supervisory and investigative powers.
The European Commission plays a central role in enforcing EU competition rules.
It may initiate investigations, conduct inspections, request documentation, and make decisions with significant economic consequences for the affected companies.
National competition authorities also play an active role in enforcing these rules when such conduct affects national or regional markets.
Cartels
Cartels are among the most serious violations of competition law.
These are secret agreements between competitors intended to artificially distort the functioning of the market.
Penalties resulting from this type of conduct can be very high and pose significant reputational risks.
Specialized legal assistance is essential both in the preventive stages and during ongoing investigations.
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State Aid and European Regulatory Oversight
European Union competition law is not limited solely to relations between companies.
It also monitors certain actions by public authorities that may affect the conditions of competition within the internal market.
State aid refers to economic advantages granted by public entities that may selectively benefit certain companies or sectors.
European regulations establish mechanisms designed to ensure that these measures do not unduly distort competition.
Companies that receive public subsidies or operate in regulated sectors should carefully analyze the implications of these regulations.
A preventive review helps avoid future risks and ensure the legal certainty of operations.
Competition Compliance Programs
Prevention is one of the most effective tools for minimizing regulatory risks.
Competition Compliance
Compliance programs help identify risks, train executives and employees, and establish internal procedures designed to prevent violations.
Organizations that operate in highly competitive markets or on an international scale tend to benefit particularly from these types of preventive measures.
The implementation of appropriate protocols facilitates the early detection of risks and helps foster a corporate culture aligned with European regulatory requirements.
In addition, certain preventive measures may prove relevant during any investigations or disciplinary proceedings.
How IN DIEM Can Help You
At IN DIEM, we advise companies, corporate groups, and economic operators on all matters related to European Union competition law.
We provide assistance with the review of commercial agreements, regulatory risk analysis, investigations by competition authorities, enforcement proceedings, regulatory compliance programs, and the defense of business interests in regulated environments.
Our work combines legal expertise, an understanding of the business world, and experience in international operations, enabling us to offer solutions tailored to each client’s specific needs.
Given the growing regulatory complexity and the increase in supervisory activity by European authorities, it is particularly advisable to adopt a proactive approach to managing competition risks.
An effective legal strategy helps protect business operations, reduce risks, and ensure that business activities are conducted in accordance with the principles governing the European Union’s internal market.
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Frequently Asked Questions International Legal
Answers to frequently asked questions about international legal services, cross-border operations, corporate law, and global legal advisory.
What does European Union competition law regulate?
It regulates business practices that may affect the proper functioning of the European internal market and free competition.
What are restrictive covenants?
These are agreements or practices among companies that may limit, distort, or restrict competition in the market.
What is a dominant position?
It is a position of economic power that allows a company to act with significant independence from competitors or customers.
Is every dominant position illegal?
No. What may be contrary to European law is the abuse of that position.
What are cartels?
These are illegal agreements among competitors intended to fix prices, divide up markets, or restrict competition.
Who investigates this conduct?
The European Commission and national competition authorities may investigate and impose sanctions for violations.
Are Spanish companies subject to these regulations?
Yes, when their activities affect the European Union’s internal market.
What is government aid?
These are certain economic advantages granted by public entities that can distort competition.
Why is compliance important in competition?
Because it helps prevent violations and reduce regulatory and penalty risks.
When is it a good idea to seek advice?
Before entering into significant commercial agreements or when there is an investigation or regulatory risk.
Legal Directors
, the In Diem Team.
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Book an initial consultation. In 60 minutes we will give you an honest assessment, available options, and next steps.
Does your company comply with competition rules?
Trade agreements, distribution policies, or market positions can pose significant risks of penalties. At IN DIEM, we review your practices in light of European competition law and develop preventive or defensive strategies to address investigations.
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