Article 82

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A provision of the Treaty of Rome, with direct effect throughout the EU (see Community legislation), that prohibits abuses of a dominant position by businesses in the EU. Examples of breaches of Article 82 (formerly 86) include refusing to supply an existing customer (for example, when it has begun to operate in competition with the dominant company), selectively reducing prices to stop competition from competitors (see predatory pricing), unfair or excessive prices, tying clauses, and refusing to license intellectual property rights. Article 82 only prohibits such conduct if the business is dominant, i.e. if it enjoys a market share of 40% or more in the EU (or a substantial part of it). The rules only apply when the conduct affects trade between member states. There is a very similar prohibition in the Chapter II prohibition of the Competition Act 1998, which holds that abuse of a dominant position will breach UK law if it has effects in the UK.

Subjects: Law.

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