As below Essay Example | Topics and Well Written Essays - 1500 words

As below - Essay Examplebeen provided under Article 81(3), however these four exceptions to the rule are so broad based and indistinct in their legal application that they do not provide any effective guidance to undertakings on what will and will not be construed to be a restrictive practice under EU law.Moreover, the provisions of this section of Article 81 also face difficulties in their legal application, because they must be enforced by national Courts and there are no effective or clear guidelines that are available to local Courts in judicial indication of these exemptions. One option open to local Courts in the event of ambiguity in interpretation is to seek a reference under Article 234, in order that Community decisions are not accepted or rejected in an ad hoc manner by a national Court2. The recent locomote by the EU to introduce clear guidelines on the criteria under which block exemptions have been provided to certain groups of undertakings may also be helpful in te rminate the uncertainties that both undertakings and judicial authorities have faced in applying the provisions of Article 81(3).Article 81 (3) lays out some exceptions to the provisions of Article 81, where the beat of anti-competitive practice will not apply. These four conditions that can be applied to undertakings whose activities3 -The European Commission has provided some guidelines for the implementation of the provisions of Article 81(3)4. According to these guidelines, the judgement on application of Article 81(3) is to be carried out in two parts. The first step is to assess whether such an agreement in the midst of two or more undertakings is likely to restrict competition. It may be noted that where small undertakings are concerned, the potential for their scope of activity adversely affecting trade between member states is limited. Therefore, according to the objectives of Article 81, the activity would not qualify as incompatible with community law. Hence this shoul d be the first step any