Consequently, the concept of eworkable competition has been developed. Although not perfect, firms and governments are encouraged to work towards the most competitive structure possible. This structure can be achieved by regulates business within the European Union, and thereby eliminating practices deemed as anti-competitive. The EU competition policy secures the benefits of European integration by effectively regulating anti competitive practices, namely monopolistic behavior, mergers and state aids, however does not ensure that Europe will remain competitive in international markets. .
One of the most commonly recognized forms of anti-competitive activity is monopolistic behavior. Forms of abuse of dominant position include unfair pricing, exclusion or limitation of supply, and discrimination among trade partners. The rules of competition regulating monopolistic behavior are outlined in Article 82( a) of the EC treaty. It reads: Any abuse by one or more undertakings of a dominant position within the common market or in a substantial part of it shall be prohibited as incompatible with the common market in so far as it may affect trade between Member States. Although Article 82 does not define what a edominant position is, past decisions by the EU commission suggest that a firm with less than 40% of the market will not be regarded as dominant. In cases of possible monopolistic activity, the EU commission must assess the degree of market dominance by deciding the boundaries of the relevant market both in terms of the products involved and its geographic extent. The boundaries are ambiguous at times as high market share does not automatically give monopoly power.
However, the dominant position itself is not illegal, only the abuse of dominance. Abuse of dominance is formally defined as, the conduct of a firm that may influence the structure of the relevant market or its degree of competition, even if such conduct is favored by a provision of national law.
