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Event background
Collaboration and agreements between competitors can be beneficial. For example they may foster innovation and allow the commercialisation of new products, reduce buyer's costs and facilitate new and cheaper distribution models. However some types of collaboration between competitors are harmful. They may prevent, restrict or distort competition, restrict innovation and/or limit economic growth.
In this context Article 101(1) prohibits any agreement between undertakings, decision by associations of undertakings, and any concerted practice which may affect trade between Member States and which has either as its object or effect the prevention, restriction, or distortion of competition.
However, an agreement that falls within Article 101(1) is not necessarily unlawful. Article 101(3) makes a 'legal exception' to the prohibition where the agreement's anti-competitive effects are outweighed or equalled by efficiency benefits (that is, the net effect on competition is positive or neutral). In paragraph 85 of its Guidelines on the application of Article 101(3) of the Treaty (the 'Guidelines'), the Commission states that 'the net effect of the agreement must at least be neutral from the point of view of those consumers directly or likely affected by the agreement'.
To satisfy Article 101(3), an agreement must satisfy four cumulative, and exhaustive, conditions:
On 12 May 2010, the OFT hosted a breakfast roundtable discussion on Article 101(3). The event was organised to stimulate debate regarding the exemption criteria. Nine speakers were invited to set out their views regarding these questions and then to discuss those views with a range of participants including senior representatives and experts from business, Government, the European Commission, law firms, economic consultancies, academia and competition authorities. The discussion focused around three main questions.
All the speakers and participants were provided with a summary and full copy of the OFT discussion paper "Article 101(3) - A Discussion of a Narrow Versus Broad Definition of Benefits" which are published alongside this synopsis.
If you have any comments, feedback or questions regarding the roundtable discussion on Article 101(3), please contact Matthew Bennett (matthew.bennett@oft.gsi.gov.uk or 020 7211 8585).
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