Competition law is designed to protect the free market system. It is rooted in the premise that vigorous competition will yield the best allocation of economic resources, with products and services at the lowest prices and the highest quality, and with incentives for firms to innovate, all for the benefit of consumers. Competition law, accordingly, ensures that each company makes its pricing and production decisions independently and that aid measures by the State are limited.
In support of this goal, European and Belgian competition law prohibits agreements between companies that appreciably restrict competition and also prohibit unilateral abuse of a dominant position. This law applies not only to horizontal agreements entered into between competitors but also to vertical agreements between two or more undertakings, each of which operates at a different level of the production or distribution chain, such as distribution, franchising and licensing agreements. It is not only the intention of the parties, but also the consequences of the conduct, that are important. The ultimate question is whether certain conduct or a certain agreement harms consumers or makes it more difficult or even impossible for a competitor to operate in the market.
State Aid rules prohibit any aid granted by a Member State or through State resources unless it is justified by reasons of general economic development. In principle, aid measures can only be implemented after prior notification to and approval by the European Commission. The European Commission has the power to recover incompatible State aid. Parties affected by unlawful aid can also bring direct action before national courts for recovery, damages or injunctive measures.
& DE BANDT assists domestic and international companies in ensuring that they comply with the applicable competition law rules. Our team has extensive experience in advising clients on ensuring their commercial strategy is in line with competition rules. We regularly intervene in merger and competition cases before competition authorities. We also represent our clients in complex litigation before national and European courts, both as claimant and defendant. If our clients’ commercial interests are being adversely affected by a dominant undertaking or by unlawful State Aid, we also plead the case before the competition authorities and courts.
In State Aid cases, & DE BANDT also has specific experience in advising public authorities in both formal and informal State Aid investigations before the European Commission.
