European Commission Tightens Application Of 'De Minimis' Safe Harbour

EU competition law prohibits agreements, decisions or concerted practices between two or more undertakings that are capable of affecting trade within the EEA and that have as their object or effect the restriction of competition (Article 101(1) of the Treaty on the Functioning of the European Union).

Restrictions of competition "by object" (as distinct from "by effect") are those which are regarded as so serious that, by their very nature, they are capable of restricting competition; in these circumstances, actual effects need not be considered. Price-fixing, market-sharing and limiting output, as well as vertical 'hard-core' restrictions such as resale price maintenance and certain sales and territorial restrictions, are the most common forms of 'object' restriction – although the concept has been interpreted even more widely than this over the years.