Applying The Economics-Based Approach To Article 81: Assessing Competitive Harm and Economic Benefit

Abstract It will be evident from the previous chapter that the focus of Article 81 analysis 4.01 under the new paradigm is on economic analysis. The application of Article 81(1) depends on whether an agreement or practice has a restrictive effect on competition, which depends in turn on whether the agreement leads to economic harm in terms of higher prices, limited output, or reductions in product quality. The application of Article 81(3) depends on whether the agreement generates economic benefits, which are in turn based on an economic assessment of ef?ciency gains that may be associated with those agreements.