An appraisal of joint ventures under Art.81(3) of the EC treaty

Abstract

It is important to appreciate that there may be circumsytances in which firms that operate at the same level of the market enter into co-operation with one another that have economic benefits. Moreover where firms decide to co-operate withone another, the medium for their collaboration can vary widely from one case to another. Also, there are a lot of Regulations which deal with the trm of joint venture. joint ventures are usually under the combined control of two or more separate parent companies. they often contribute to the economic objectives of the EC.

In the study below the impact of joint venture will be considered by analyzing it most most important provisions. the meaning of joint ventire will be considered and will be explained in chapter 2. However, it is very important to mention what the Community's policy on competition matter is. the above statement will be examined in chapter 3. The treatment of joint ventures in the European community has changed over the years, and it is very useful to examine the distinction between joint ventures. There are two categories of joint venture. these categories are the 'concentrative' and the co-operative' joint venture. this point has been included in chapter 4. Unfortunately, mainly because of the pressure of space it is not possible to discuss in full detail about these categories. However, the most important aspect of these categories have been included. Regulation 1/2003 (the modernization regulation) which was adopted in November 2002 and comes into force on 1 May 2004, rplaced the 40-year-old regulation 17/62 and radically reforms the framework of European Competition Law. These aspects have been explained in Chapter 5. In Chapter 6, explained generally the most important elements about Article 81. Extensive consideration in this study will be given about Article 81(3). There are two ways by which Article 81(1) may be declared inapplicable to an agreeemtn pursuant to Articole 81(3). The first way is that the agreement in question falls within a Block Exemption. Alternatively, Article 81(1) may be decalred inapplicable to an agreement which is assessed to an agreement which is assessed individulally provided that it satisties the conditions set out in Article 81(3). All these aspects have been explained in Chapter 7.