The prohibition on restrictive agreements

Article 101(1) TFEU prohibits agreements and concerted practices between two or more undertakings (or associations of undertakings) which may affect trade between EU Member States and which have as their object or effect the prevention, restriction, or distortion of competition within the internal market. In particular, the Article 101(1) TFEU prohibition focuses on arrangements which:

1. •

   directly or indirectly fix purchase or selling prices or any other trading conditions,

2. •

   limit or control production, markets, technical development, or investment,

3. •

   share markets or sources of supply,

4. •

   apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage, or

5. •

   make the conclusion of contracts subject to tie-in of supplementary obligations unconnected with the subject matter of the contract.

See further: The prohibition on restrictive agreements.

Where an agreement is determined by either the European Commission (Commission), national competition authorities (NCAs), or the EU courts to have a restrictive ‘object’ or is shown to produce appreciably restrictive effects within the meaning of Article 101(1) TFEU, the agreement will be illegal under Article 101(2) TFEU unless the