International Competition Law and Practice Essay

International Competition Law and Practice - Essay Example Competition should be healthy and fair. It becomes unfair and subject to scrutiny when some firms attempt to drive their competitors out of the market. This is why there comes the need to regulate the anti-competitive behavior by companies. Competition law achieves this purpose and maintains market competition. Among the member states of the European Union, there is a set of treaties which are known as Treaties of the European Union. Among these treaties is the Treaty on the functioning of the European Union. Article 101 of this treaty prohibits the formation of cartels and other agreements that have the potential of disrupting free competition in the internal market of European Economic Area. e. â€Å"make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.† In the European case Carbon Gas Technologie,1 several companies joined together in an agreement under which they decided to exploit coal deposits in a much efficient manner. They agreed on using these reserves in a manner that is much less harmful to the environment. Some cases, like KSB/Goulds/Lowara/ITT,2 involve only economic elements but they are allowed as they pass a fair share of the benefits on to the consumer. But in the case of ARA, ARGEV, ARO,3 environmental benefits were not discussed under the criterion of fair share for consumers. As far as environmental benefits are concerned, preventive measures are also regarded as contributions to the protection of environment.4 In 1994, the Commission allowed an agreement between Exxon and Shell under which ethylene was no longer required to be transported between the two companies. It was because the transport of ethylene is harmful for the environment. The case of Philips – Osram5 is another example of cases in which redu ction of negative externality is taken into