EU Competition Law and Trade Associations

Abstract

This chapter assesses the provisions of European Union competition law as they apply to trade associations. Trade associations, both national and European, are in a unique position vis-à-vis the European Union legal system. They act as representatives of their constituent members, lobbying the European legislature. They may act as enforcers of competition law, bringing infractions to the attention of the European Commission. They will be empowered to collate information about the sector of the market in which their members operate. This constitutional power, to gather and disseminate information concerning the industrial or commercial sector they are involved in, can be utilised for positive or negative purposes. The association may act as a repository for market information, which is indicative of collusive behaviour by a number of competing organisations. Conversely, the information repository may be used by the members of the association to facilitate anti-competitive abuses. The trade association may simply be a front for collusive activity. Trade associations must tread a fine line between adopting legitimate business practices and collaborating in collusive or abusive activity that is anti-competitive. The delimitation of the legality of trade association activity is one of degree. The factual situation appertaining to the market is vital in assessing the legality or otherwise of the activities of a trade association.