European law Essay Example | Topics and Well Written Essays - 2500 words

European law - Essay Example ibutor Lyon in France is 40% of the market and therefore there could be an issue of collective dominance1 of BMC and Lyon that may well arise in this case and invoke the provisions of Article 81(1) restricting competition in the internal market. Article 14(2) of the EC Treaty defines the internal market as â€Å"an area without frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of this treaty.† On this basis, it may therefore be stated that any measure that has the cumulative effective of restricting the free movement of goods (in this case cars) within the internal market which is comprised of the European states including UK, France and Germany could be deemed to be violative of EU law. However EC competition law is based upon the Treaty of Rome which requires that certain objectives be taken into consideration in so far as implementing Community law is concerned, such as for example Article 6 for environmental protection, article 127 for employment or article 153.2 for consumer protection. Such factors therefore allow for a fairly flexible interpretation of competition law, as in the case of Metro SB-Großmà ¤rkte GmbH & Co. KG v Commission. 2 Monti has also pointed out several other examples of goals that have been considered in implementing competition law, either directly or indirectly and identifies some of these goals as regional development, industrial policy, protection of employment, protection of the environment and market integration.3 Such exemptions may however, not always apply. For example, in the case of A BrunsteinergmbH and Autohaus Hilgert gmbH v BMW,4 the Court held that where the exemptions listed under Article 81(3) of the EC Treaty were not satisfied, then contractual terms between two undertakings that were restrictive of competition could be deemed to be liable under the provisions of Article 81(1). A major issue in this case was the application of Regulation EC No: