Monopolies and Anti-Competitive Practice Legislation in UK

This presentation discusses monopolies and anti-competitive practice legislation in the UK. It explores the case of United Brands Company and United Brands Continentaal BV v Commission of the European Communities. It also explains the role of the competition commission and exemptions provided in potential anti-competitive practices.

BUSINESS LAW
TASK 3

INTRODUCTION
Civil law has a branch named business law. This business law
is made to protect the rights of the people involved in some
business or for the conduct of people and to maintain the
relations of people involved in business activities. The law
have certain rules and policies and all the people involved in
trade activities has to follow those code of conduct and those
rules. According to the sale of goods act it is made to
safeguard the interest of sellers and buyers.

Monopolies and anti-competitive practice legislation
in UK.
Monopolies arise in the market where there is a single
seller and he sets the prices according to his wish. The
united kingdom has prohibited the monopolistic activities in
the market under the competitive act and they have the
rights to investigate the case of concern.
The European elements affects the competition law of
united kingdom. The UK law comprises of the most
important dimension in regards to competition law and
these are : competition act 1998 and enterprise act 2002.
The business is said to be in monopoly when he has more
than 25% market share

CASE
United Brands Company and United Brands Continentaal BV v
Commission of the European Communities, 1978
In this case it has been stated that, United brands is the
company which enjoy dominant position in international
market and registered under the New Jersey.

Role of competition commission in the context of
monopolies and anti competitive practices.
The mergers and other activities should be in the interest
of the public. And they should be for the benefit of the
public(Percival Schroeder and,Leape 2013). It is the duty of
the competition act to take care of these issues. For
checking that the mergers are in the interest of public or
not are:
check the market share of the local firm
market share of new entity.
What are the kind of activities that are going on in the
activities.
Research and development activities are to taken care of.
Economies of scale.

Dominant positions within the EU common market
The firm is in dominant position then more than 50% market
is in their control and they can manipulate with the prices and
the customer will suffer. They can create barriers by :
Price discrimination: it is the situation where a firm
charges different price from different customers. It violates the
principle of same price from same customers.
Predatory pricing: this is the situation where product and
services are offered at a low price than the price offered by
the competitors in the market. It violated the concept of fair
competition.

Exemption situation provided in potential anti-
competitive practices
Article 102 consists of the exemptions for the ones who are able
to prove that they get benefit from the competitive practices. In
article 101 principle in this the not important agreements are
exempt .
 The small business comprising of less than 10% and they are
able to get the customer satisfaction and who does not harm the
customers and quality products are provided.

CASE
Fenin v Commission, as per this case, FENIN is the firm which
deliver medical products and services in Spanish hospital.
And its services used by large number of people.
Various other organization files case against.
But court reject the complaint that the company is engaged in
the business which is not done by any other firms.

REFERENCES
 Bebchuk, L.A. and Jackson, R.J., 2011. The law and
economics of blockholder disclosure.
 Bishara, N.D. and Westermann‐Behaylo, M., 2012. The Law
and Ethics of Restrictions on an Employee's Post‐
Employment Mobility. American Business Law Journal.
49(1). pp.1-61.
 Cantwell, J., Dunning, J.H. and Lundan, S.M., 2010. An
evolutionary approach to understanding international
business activity: The co-evolution of MNEs and the
institutional environment. Journal of International Business
Studies. 41(4). pp.567-586.