In practice
Competition law often operates in the background of virtually every commercial relationship, but is the cause of major consequences should things go awry. High fines may be imposed, not just on companies but also on the persons involved. Moreover, agreements contrary to the competition rules are “invalid” and could lead to claims by aggrieved companies or consumers.
Whether they involve strategic joint ventures, distribution or mergers and acquisitions, all agreements are limited by European and national competition rules. In practice, this means for example:
- Competing companies cannot engage in price-fixing or enter into a market-sharing agreement, whether directly or indirectly;
- Distribution agreements may only set general outlines for sales prices, markets or online sales;
- Mergers, acquisitions or joint ventures may have an obligation to report – whether in advance or otherwise – to the ACM, the European Commission or foreign competition authorities.