Competition law object and effect

  • What is a by object restriction competition law?

    Restrictions of competition by object are those that by their very nature have the potential of restricting competition..

  • What is an anti-competitive object or effect?

    Agreements with an anti-competitive object are those that are particularly high risk and are presumed to have a negative impact on markets—because of their seriousness, there is no need to prove that there is an actual negative effect on competition..

  • What is an infringement by object?

    Violations by Object.
    There are agreements that by their very nature are anti-competitive.
    Examples of such agreements include price fixing arrangements, agreements that limit imports and exports, and agreements that divide the market..

  • What is by effect competition law?

    For an agreement to be restrictive by effect it must affect actual or potential competition to such an extent that on the relevant market negative effects on prices, output, innovation or the variety or quality of goods and services can be expected with a reasonable degree of probability..

  • What is object and effect in competition law?

    The “effect” concept of an agreement is based on the idea that certain restrictions violate Art. 101 of TFEU because of their recognized harmful effects on the relevant market.
    Unlike restriction by object, which is primarily based on the aim and the nature, restriction by effect has no aim of restricting competition.Feb 4, 2022.

  • What is the object or effect of preventing restricting or distorting competition?

    What does Prevention, restriction or distortion of competition mean? Agreements which prevent, restrict or distort competition, whether by object or effect are anti-competitive and prohibited under EU and UK competition law..

  • Published by a LexisNexis Competition expert
    Agreements with an anti-competitive object are those that are particularly high risk and are presumed to have a negative impact on markets—because of their seriousness, there is no need to prove that there is an actual negative effect on competition.
  • Restrictions of competition by object are those that by their very nature have the potential of restricting competition.
  • The “effect” concept of an agreement is based on the idea that certain restrictions violate Art. 101 of TFEU because of their recognized harmful effects on the relevant market.
    Unlike restriction by object, which is primarily based on the aim and the nature, restriction by effect has no aim of restricting competition.Feb 4, 2022
  • Violations by Object.
    There are agreements that by their very nature are anti-competitive.
    Examples of such agreements include price fixing arrangements, agreements that limit imports and exports, and agreements that divide the market.
Article 101(1) prohibits agreements that have as their object or effect the restriction of competition. It is still controversial, after more than 50 years of 
The “effect” concept of an agreement is based on the idea that certain restrictions violate Art. 101 of TFEU because of their recognized harmful effects on the relevant market. Unlike restriction by object, which is primarily based on the aim and the nature, restriction by effect has no aim of restricting competition.

Can a pro-competitive practice affect competition?

In addition, any practice that could also generate pro-competitive effects that compensate or reduce its negative impact likely will not constitute an obvious impairment to competition.
This should be ruled out as a candidate for a restriction “by object”, or at least not without any economic consideration.

How does the CJEU determine if an undertaking harms competition?

The object is determined by looking at the content of the action and “the objectives it aims to pursue.” If the undertaking’s exploits do not have the object of harming competition, the CJEU will then determine if they have negative effects on competition in the market.

Is there a dichotomy between restriction of competition by object and effect?

Advocate General Bobek acknowledged the complex- ity of this topic in his opinion in Gazdasági Versenyhivatal v Budapest Bank Nyrt430:

  • From the early days of EU competition law
  • much ink has been spilled on the dichotomy between restriction of competition by object and restriction by efect.

    • What are object and effect violations under Article 101?

    Object and effect are separate categories of violations under Article 101.
    If there is an agreement that by its very nature harms competition, it will violate Article 101, even if there are no negative effects on competition, or even if there are beneficial effects for market integration.

    Theorized increase of longevity with age

    The Lindy effect is a theorized phenomenon by which the future life expectancy of some non-perishable things, like a technology or an idea, is proportional to their current age.
    Thus, the Lindy effect proposes the longer a period something has survived to exist or be used in the present, the longer its remaining life expectancy.
    Longevity implies a resistance to change, obsolescence or competition and greater odds of continued existence into the future.
    Where the Lindy effect applies, mortality rate decreases with time.
    Mathematically, the Lindy effect corresponds to lifetimes following a Pareto probability distribution.

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