ABSTRACT
Article 85(1) prohibits agreements whose object or effect is the prevention, restriction or distortion of competition. However, even an agreement which comes within the scope of Article 85(1) may be authorised by the Commission where it satisfies the criteria of Article 85(3). Agreements which fall within Article 85(1) are void and unenforceable unless they are exempted under Article 85(3), either individually or under one of the six block exemptions. The rule-of-reason argument would say that the agreement, far from restricting competition, may introduce a new product on to the market, thus increasing competition overall. One of the reasons that competition law has such a large part to play in the integration of market is that agreements between undertakings can be very effective in partitioning the market. There is a considerable difference in the political systems of the United States and the European Community. The Commission is itself acutely aware of the procedural problems that firms experience in competition law matters.
