Cometition law in international context Essay Example | Topics and Well Written Essays - 2750 words

Cometition law in international context - Essay Example Statement of purpose The Minister of Trade and Industry should prevent nationalization of electronic mail service and reinforcing the monopoly of Greek Post office. These plans are anti-competitive and will lead to prices paid by consumers. Greek is a Member State of the European Union and several provisions, Regulations and legislations of EU aim at ensuring market competition. Background of the problem The new Minister of Trade and Industry in Greece is planning to nationalise the electronic mail service, reinforcing the monopoly of Greek post office in the delivery of traditional mail. The objective is to ensure that Greek post office maintains important market share of customers. However, most customers have already switched from the traditional postal services to modern electronic mail, which is offered by efficient private companies. After nationalization, the Greek post office aims at increasing the prices of both services since the costs of delivering the ordinary post has be en increasing over the recent years. The Greek post office will decline access to its facilities including fibre optic infrastructure, to private companies who would like to offer competition to Greek post office by providing internet service and electronic mail services. International competition law According to the European Union treaty on competition, member states are not supposed to enact policies that create rigidity in trade and hinder competition or distort the market economy. Article 101 of the Treaty of the Functioning of the EU prohibits agreements that distort market competition or encourage cartels. This article aims at prevention undertakings that restrict and distort market economies of the member states within the internal market. Some of the prohibited practices include limitations on production, technical development and investments in the market. Direct or indirect price fixation or the selling and buying prices and trading conditions are prohibited by the Articl e. Member states are prohibited from applying different trading conditions on similar transactions with other trading partners in the economy1. The EC Treaty provisions regarding competition are contained in Article 3 (g) and Articles 81-89 of the Treaty that established the European Community along with several regulations and subsidiary legislations. Articles 81 to Article 86 mainly apply to the trade undertakings while Articles 87 to Article 89 apply to the Member States. The primary objective of the EU competition law is to prohibit internal markets distortion. Article 81 (1) prohibits all trade agreements between undertakings and association decisions that may hinder trade between member states2. However, the Article makes exception s for the trade agreements that aim at improving the welfare of the EU citizens by promoting the distribution of goods or technical promotion, while allowing customers a fair share of the benefits of the trade agreement. The excepted trade agreement s should not impose conditions and restrictions on the customers in the access of the goods or eliminate free competition in the market in regard to the goods being produced. Article 1 (1) of the Regulations 1/2003, the agreements that are outlined in Article 81 (1) and that contravene conditions of Article 81 (3) are unlawful. Article 1 (2) of the