European Union

DG Competition within the European Commission investigates and decides cases. The Commissioner for Competition leads policy. National competition authorities (NCAs) in 27 member states enforce EU rules in parallel through the ECN.

The European Competition Network coordinates enforcement. The General Court and Court of Justice of the EU hear appeals. DG Competition has ~900 staff dedicated to competition enforcement.

Article 101(1) TFEU prohibits agreements that restrict competition, with cartels (price fixing, market sharing, bid rigging) treated as hardcore restrictions. Block exemptions available under Article 101(3) for agreements with countervailing benefits.

The Horizontal Block Exemption Regulation (HBER) and Guidelines provide safe harbours for R&D and specialisation agreements. Cartels face fines of up to 10% of global turnover. The Commission prosecutes numerous cartel cases annually.

Vertical agreements are assessed under Article 101 with the Vertical Block Exemption Regulation (VBER) providing a safe harbour for suppliers with <30% market share. RPM is treated as a hardcore restriction.

The 2022 VBER introduced updated rules on dual distribution, online sales restrictions, and platform parity clauses. Selective and exclusive distribution systems are addressed with greater clarity.

Article 102 TFEU prohibits abuse of a dominant position. Key concepts include excessive pricing, predatory pricing, tying, refusal to deal, and margin squeeze. No formal dominance threshold but typically >40% market share.

Landmark cases include Google Shopping (EUR 2.42bn), Google Android (EUR 4.34bn), Intel, and Qualcomm. The Commission has been active in digital markets enforcement.

EU Merger Regulation requires mandatory pre-notification for concentrations with Community dimension (combined worldwide turnover >EUR 5bn or combined EU turnover >EUR 250m). Two-phase review with Phase I (25 working days) and Phase II (90 working days, extendable).

Simplified procedure available for non-problematic mergers. Article 22 referral mechanism allows review of below-threshold deals (the "killer acquisition" tool). ~350 notifications per year.

The Commission's leniency programme offers full immunity to the first cartel participant that provides evidence, and reductions of 30-50% for subsequent applicants. The ECN+ Directive harmonised leniency across member states.

Leniency applications are submitted to DG Competition. The marker system allows applicants to secure their place while completing submissions. Leniency is the Commission's primary tool for detecting cartels.

Cartel settlement procedure offers 10% fine reduction for acknowledging involvement. Commitment decisions under Article 9 of Regulation 1/2003 allow parties to offer remedies without an infringement finding, commonly used in abuse of dominance cases.

Settlement has been used in ~70% of cartel cases since 2008. Commitment decisions have been used in major tech cases including Google Shopping commitments in related markets.

Fines of up to 10% of worldwide annual turnover. The Commission uses the 2006 Fining Guidelines based on value of sales and duration. Periodic penalty payments for non-compliance with orders.

Record fines include Google Android (EUR 4.34bn, 2018), Trucks cartel (combined EUR 3.8bn), and CRT monitors (EUR 1.47bn). Individuals are not directly fined by the Commission but may face national criminal sanctions.

The Digital Markets Act (DMA), effective March 2024, imposes ex ante obligations on designated "gatekeepers" (large digital platforms). Obligations include interoperability, data portability, anti-self-preferencing, and fair access.

Six companies designated as gatekeepers: Alphabet, Amazon, Apple, ByteDance, Meta, Microsoft. Non-compliance fines up to 10% of global turnover (20% for repeat offenders). First investigations launched in 2024.

Sector-specific regulators operate alongside competition authorities in telecoms (BEREC framework), energy (ACER), financial services, and transport. The ECN coordinates with sectoral regulators.

DG Competition has extensive dawn raid powers under Article 20 of Regulation 1/2003, including searching business and domestic premises. Digital forensics capabilities for electronic evidence. Cooperation with national authorities for execution.

Obstruction of inspections can result in fines of up to 1% of turnover. The Commission can also issue requests for information under Article 18, with fines for incorrect or misleading responses.

The Damages Directive (2014/104/EU) harmonised private enforcement across the EU. Victims of antitrust infringements have a right to full compensation. National courts handle private actions, with follow-on claims after Commission decisions benefiting from binding effect.

Private enforcement has grown significantly since the Damages Directive. Key issues include disclosure rules, passing-on defence, and quantification of harm. Collective action mechanisms vary by member state.

The EU has cooperation agreements with the US, Canada, Japan, South Korea, Switzerland, and others. Active member of ICN and OECD Competition Committee. DG Competition regularly coordinates multi-jurisdictional merger reviews and cartel investigations.

Focus on digital markets and DMA enforcement. Ongoing investigations into Apple App Store, Meta pay-or-consent model. Continued cartel enforcement in automotive, chemicals, and financial sectors. Increased scrutiny of below-threshold mergers via Article 22 referrals.