European Community (EC) Competition Rules

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Apr23

April 23, 2006

Know More: International law 2.0, International law

Effective May 1, 2004, the EC enacted competition rules for technology license agreements. The rules limit customer and territory restrictions, and integrate European Economic Area markets

Hardcore restraints on competition under the rules include: price fixing, allocation of markets or customers, and cross- supplies.

There are certain exemptions from the rules based on market share and whether the agreements are between competitors. The relevant market is the market in which agreements and competitive practices are carried out.
Agreements that violate the EC rules subject companies to fines. Unlawful restrictions may be invalidated by government authorities.

For further discussions, view the EC’s published Regulation 772/2004 on Application of Article 81(3) to Technology Transfer Agreements.

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