ABSTRACT
The Community rules surrounding the control of agreements1 have been influenced to a much greater extent by the general goals of the Community than have the rules on control of dominant undertakings. The neo-classical model of competition discussed in Chapter 1 highlighted the problems which a monopoly can create. It is also possible for undertakings to reach that monopoly position by agreeing with their competitors that they should not compete. In effect, the parties to the agreement, forming what is known as a cartel, will have a monopoly position on what was previously a competitive market. Historically, the existence of cartels was common in European markets, and therefore their removal was one of the central goals of the Community. The competition rules in this area were also very important in securing the four freedoms of the Community. The achievement of the free movement of goods would have been hampered were undertakings in a position to erect barriers to free trade after the Community had removed those put in place by Member States. Undertakings which had previously been protected from competition by those State barriers may have been tempted to try to maintain their privileged position by entering into agreements with their potential competitors in other Member States.
