Browsing by Author "Eräkivi, Ossi"

This master’s thesis examines strategic alliances under the European Union competition law and answers the following research questions: i) how can the European Union competition law be systemized with regards to strategic alliances and ii) is it possible to establish a general framework for the use of strategic alliances under the European Union competition law. For the purpose of the thesis, a strategic alliance is operationalized as being inter-organizational cooperation between independent undertakings having a form of either horizontal cooperation or vertical cooperation. The concept of cooperation is understood as having a form of an explicit agreement between undertakings resulting in either a contractual arrangement or an establishment of a full-function joint venture. The research material of the thesis is i) relevant primary and secondary legislation of the European Union law, ii) relevant soft law instruments given by the European Commission in the field of competition law and iii) general academic literature on the European Union competition law. The thesis applies a hermeneutic methodological approach. This thesis is structured as follows. First, an overview of the European Union law is presented together with the aims and legal basis of the European Union competition law. Then relevant competition law provisions of the European Union law in the context of strategic alliances are discussed in detail. After this a framework for strategic alliances under the European Union competition law is laid out. The thesis ends with a conclusion section in which the whole thesis is summarized and the research questions addressed in a condensed manner. The conclusion of the thesis is that the European Union competition law has a solid basis in the primary law of the European Union along with complementary secondary law provisions. From the strategic alliance point of view, the most important provisions have been identified as being Article 101 TFEU and EUMR together with Regulation 1/2003 stipulating the enforcement of Article 101 TFEU. Further, it has been presented that the applicable European Union competition law provisions relating to strategic alliances are dependent on the characteristics of the strategic alliance in question with the main factors determining the applicable European Union competition law provisions being the nature of cooperation (horizontal vs. vertical cooperation) and the form of cooperation (contractual arrangement vs. full-function joint venture). Lastly, it has been presented that the European Union competition law relating to strategic alliances in its all forms are directly linked to a concept of market power. Only cooperation between undertakings that have sufficient degree of market power – either before or after the commencement of cooperation – may fall under the prohibition of Article 101 TFEU and EUMR. From the European Union competition law point of view, market power is a question of a degree resulting in a fact that there is always a point after which market power of undertakings becomes substantial enough to be deemed to have potential anti-competitive effects. The point after which market power becomes substantial enough must be determined through a concept of independence taking into account the degree of competitive constraints exerted on the undertakings concerned in the relevant product and geographical markets.