THE SOCIAL CODEX
Knowledge, Structured.
EU COMPETITION POLICY
Complete Course Summary
Vrije Universiteit Brussel • 2025–2026
A Social Codex Summary
, THE SOCIAL CODEX | EU Competition Policy
Course Overview and Structure
This course covers EU Competition Policy: the body of rules and instruments by which the
European Union safeguards effective competition in the internal market. The course follows
the chronological order set out in the preliminary schedule for the 2025–2026 second
semester.
Preliminary Schedule (course order)
• Introduction to the course and to competition policy
• Horizontal agreements (anticompetitive agreements between competitors)
• Vertical agreements and Hub & Spoke arrangements
• Abuse of dominance
• Merger control
• State aid
• Movie discussion – The Informant! (lysine cartel)
• Special topic: algorithmic pricing and collusion
• Special topic: data protection considerations in competition law
Knowledge, Structured. 2
, THE SOCIAL CODEX | EU Competition Policy
1. Introduction to Competition Policy
1.1 Competition – A Multilayered Concept
Competition is a multilayered concept with diverse interpretations: it is rivalry between firms
(to gain sales, make profits, etc.). Competition occurs out of self-interest, but the result is
beneficial to society. The intensity of competition depends on market structure.
Possible market structures, ranked from most to least competitive: perfect competition,
monopolistic competition, oligopoly, monopoly.
Perfect Competition
Requires: no monopoly (one seller), no duopoly, no oligopoly (too few sellers), no monopsony
(one buyer), no oligopsony (too few buyers), no barriers to entry.
1.2 Why Do We Need Competition Policy? Benefits and
Impediments
Benefits of competition typically include: lower prices, higher quality, more choice, more
innovation, better allocation of resources, productivity growth.
Impediments to competition (market failures) include:
• Market power
• Maldistributions (wrong distribution of purchasing power and wealth)
• Miscalculations (consumers misapprehending their interests)
• Information asymmetries
• Non-excludability (use divorced from ownership)
• Non-rivalry
• Externalities (costs/benefits not internal to the parties)
Competition Policy
Aims to ensure that competition in the market is not restricted in a way that is detrimental to
society.
1.3 Three Pillars of EU Competition Policy
• Antitrust: preventing anticompetitive practices and abuse of dominance (Articles
101 and 102 TFEU).
• Merger control: preventing anticompetitive concentrations (EU Merger
Regulation, 2004).
Knowledge, Structured. 3
, THE SOCIAL CODEX | EU Competition Policy
• State aid: limiting distortions to competition and trade resulting from state
interventions (Articles 107–109 TFEU). Considered “EU specific” – no direct
counterpart in most other jurisdictions.
Newer EU-specific instruments: the Digital Markets Act (DMA) and the Foreign Subsidies
Regulation (FSR). Sometimes also: new rules on digital and data, market liberalisation, market
regulation, public procurement rules.
Antitrust – Anticompetitive Practices
Horizontal agreements (between competitors), such as:
• Price agreements
• Output restrictions
• Market allocation
• Bid rigging
Vertical agreements (between firms at different levels of the supply chain), such as:
• Exclusive supply agreements
• Tie-in / tying
• Resale price maintenance (RPM)
Hub & Spoke
Horizontal anticompetitive practice through coordination via a hub (vertical contacts producing a
horizontal effect).
Abuse of dominance can take the form of:
• Exploitative practices: excessive pricing; discrimination.
• Exclusionary practices: predatory pricing; refusal to deal.
Merger Control
• Horizontal mergers (competitors)
• Vertical mergers (companies along the supply chain)
• Conglomerate mergers (firms in different lines of business)
• Other types of concentration: acquisitions; full-function joint ventures, etc.
State Aid
State aid is defined by five cumulative elements (Article 107(1) TFEU):
• Selective advantage
• Granted to an undertaking
• Through state resources
• Distorting (or threatening to distort) competition
• Affecting trade between Member States
Knowledge, Structured. 4
Knowledge, Structured.
EU COMPETITION POLICY
Complete Course Summary
Vrije Universiteit Brussel • 2025–2026
A Social Codex Summary
, THE SOCIAL CODEX | EU Competition Policy
Course Overview and Structure
This course covers EU Competition Policy: the body of rules and instruments by which the
European Union safeguards effective competition in the internal market. The course follows
the chronological order set out in the preliminary schedule for the 2025–2026 second
semester.
Preliminary Schedule (course order)
• Introduction to the course and to competition policy
• Horizontal agreements (anticompetitive agreements between competitors)
• Vertical agreements and Hub & Spoke arrangements
• Abuse of dominance
• Merger control
• State aid
• Movie discussion – The Informant! (lysine cartel)
• Special topic: algorithmic pricing and collusion
• Special topic: data protection considerations in competition law
Knowledge, Structured. 2
, THE SOCIAL CODEX | EU Competition Policy
1. Introduction to Competition Policy
1.1 Competition – A Multilayered Concept
Competition is a multilayered concept with diverse interpretations: it is rivalry between firms
(to gain sales, make profits, etc.). Competition occurs out of self-interest, but the result is
beneficial to society. The intensity of competition depends on market structure.
Possible market structures, ranked from most to least competitive: perfect competition,
monopolistic competition, oligopoly, monopoly.
Perfect Competition
Requires: no monopoly (one seller), no duopoly, no oligopoly (too few sellers), no monopsony
(one buyer), no oligopsony (too few buyers), no barriers to entry.
1.2 Why Do We Need Competition Policy? Benefits and
Impediments
Benefits of competition typically include: lower prices, higher quality, more choice, more
innovation, better allocation of resources, productivity growth.
Impediments to competition (market failures) include:
• Market power
• Maldistributions (wrong distribution of purchasing power and wealth)
• Miscalculations (consumers misapprehending their interests)
• Information asymmetries
• Non-excludability (use divorced from ownership)
• Non-rivalry
• Externalities (costs/benefits not internal to the parties)
Competition Policy
Aims to ensure that competition in the market is not restricted in a way that is detrimental to
society.
1.3 Three Pillars of EU Competition Policy
• Antitrust: preventing anticompetitive practices and abuse of dominance (Articles
101 and 102 TFEU).
• Merger control: preventing anticompetitive concentrations (EU Merger
Regulation, 2004).
Knowledge, Structured. 3
, THE SOCIAL CODEX | EU Competition Policy
• State aid: limiting distortions to competition and trade resulting from state
interventions (Articles 107–109 TFEU). Considered “EU specific” – no direct
counterpart in most other jurisdictions.
Newer EU-specific instruments: the Digital Markets Act (DMA) and the Foreign Subsidies
Regulation (FSR). Sometimes also: new rules on digital and data, market liberalisation, market
regulation, public procurement rules.
Antitrust – Anticompetitive Practices
Horizontal agreements (between competitors), such as:
• Price agreements
• Output restrictions
• Market allocation
• Bid rigging
Vertical agreements (between firms at different levels of the supply chain), such as:
• Exclusive supply agreements
• Tie-in / tying
• Resale price maintenance (RPM)
Hub & Spoke
Horizontal anticompetitive practice through coordination via a hub (vertical contacts producing a
horizontal effect).
Abuse of dominance can take the form of:
• Exploitative practices: excessive pricing; discrimination.
• Exclusionary practices: predatory pricing; refusal to deal.
Merger Control
• Horizontal mergers (competitors)
• Vertical mergers (companies along the supply chain)
• Conglomerate mergers (firms in different lines of business)
• Other types of concentration: acquisitions; full-function joint ventures, etc.
State Aid
State aid is defined by five cumulative elements (Article 107(1) TFEU):
• Selective advantage
• Granted to an undertaking
• Through state resources
• Distorting (or threatening to distort) competition
• Affecting trade between Member States
Knowledge, Structured. 4
