Treaty Of Functioning Of The European Union

Treaty Of Functioning Of The European Union

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Treaty Of Functioning Of The European Union

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Treaty Of Functioning Of The European Union

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Question:

Discuss About The Treaty Of Functioning Of The European Union?

 
Answer:

Introduction:
The subject matter of the case is based on the facts regarding the provisions of the Treaty of Functioning of the European Union (TFEU) and certain initiatives have been taken to identify the relevant provision of the facts. It is to be pointed out that what are the reasons behind the change of focus of the EU commission from protection of competition to the safeguarding consumer welfare. It is to be understood the meaning of the competition and the relation of the same with the consumer welfare. In general, it has been observed that the competition is a process through which the companies use to offer certain goods and services to the consumers. Competition helps to reduce the cost of the goods and facilitate the services regarding the same. There are certain treaties implemented to regulate the competition within the provinces of the European Union and among all the treaties, Treaty of Functioning of the European Union (TFEU) is one of the most important in this case. The subject of the case is evolved with two provisions of the treaty that are Article 101 and Article 102. Objectives regarding both the Articles are to restrict all the steps that are taken to close the chance of competition in the consumer related matters [1]. The European Union commission has the right to deal with the provisions of the treaty. There are certain reasons that taking place in recent times regarding the transferring of focus from the protection of competition to the safeguards consumer welfare. It has been decided by the commission that the most important thing is to protect the interest of the consumers.  
The Treaty of Functioning of European Union was for the first time generated in the year 1957 in Rome and the then name of the treaty was European Economic Community[2]. Later on 2007, the treaty was known as Treaty of Functioning of European Union. The treaty is divided into seven parts. The base and the value of the treaty are discussed in the first part. It consists of 17 Articles. The second part of the treaty delivers its views regarding the non-discrimination and certain steps have been taken for the interest of the nation as well as the European Union. Policies and the internal actions of the European Union are being discussed in the third part of the treaty. The consumer related matter has been discussed in the third part of the Treaty[3].
 
Article 101 of TFEU
Article 101 is a prohibitory section that restricts the market operators who wanted to stop the competitive mentality [4]. It has been stated by the European Union that competitive mentality is important to retain the growth in market and it is held that the market operators are contracting agreements by two ways. When the agreements are being made in between the actual and potential competitors, that is known as the horizontal agreement and when in the agreement process, different types of firms are engaged, it becomes known as vertical agreement. The provision of Article 101 creates effect in the internal market area. Certain provisions are being mentioned under this Article to restrict all the attempts made for the prohibition of competition.
It has been mentioned under the Article that the undertakings and the decisions that are directly or indirectly inflicting the theories of competition has to be prohibited [5]. This is the provision regarding the internal marketing policy of European Union. The member states are restricted to take any kind of steps that will be an obstacle regarding the competition in the market. There should not be any dissimilarity regarding the transactions with the other trading parties and it should be bored in mind that certain supplementary obligations are to be imposed on the cartels. It has also been stated under the Article that if there is any decisions choose against the objective of the treaty shall be made void automatically.
The objective of the Article is to provide relief to them who are affecting by the anti-competitive behavior. The European Union has taken such steps to avoid the complexion in the market policies. It is stated by the European Union that it is important to maintain a clarity regarding the internal marketing policies and retain economic efficiency in the markets.   
Article 102 of TFEU
The main aim of the Article is to prevent those who have a dominant mentality and want to abuse the process of market. It has been alleged that the private sectors are trying to reduce the competitive mentality and avoid the monopolistic character of the market. This dominant mentality has been found in the sectors of the firm base. It has been stated by the Article that from the report of the market analyst that the dominancy regarding the marketing policies are high in number. Certain processes are taking for the reduction of the topics for the betterment of the society. The word market is playing an important role in the field of the European Union[6]. The markets are divided into two parts such as product market and geographical market.
In the present case, it has been stated that the consumers are the most important part of the competition market. It has been mentioned under the Article 102 that there is a need to establish the competition in the private sector. If there is no competitive mentality in the private firm, then the price of the goods will become unfair immature, the production process of the goods will become limited in nature. Therefore, the applicability of these two Articles becomes necessary to maintain systematic approach in the marketing section.   
 
Court of justice
Court of Justice governs the law related problems for the continents of the European Unions. It is the highest court for the provinces of the European Union. The main objective of the court is to implement and interpret the law and apply the same for achieving the ultimate purpose [7]. In the year 1952, Court of Justice was established in Luxembourg. All the EU-based disputes are to be resolved by the Court of Justice. The court is to be composed with the Judge, President, Vice-president, Advocates general, the Registrar, and Chambers. All the competition related matters are dealing by the parliamentary committees and it is to be stated that the committees are divided into two parts. The economic and the monetary policies are deals by the European parliament ECON committee and IMCO committee is dealing with the internal market and consumer protection. The Court of Justice ensures the interpretation and application of the competition law and prescribes certain steps to regulate the relevant laws across the EU. the steps of the Court of Justice has created significant effect on the European and deliver all the steps regarding the effectiveness of the competition law.
Protection of competition
Meaning
Competition provokes many companies that are engaged with the process of providing goods and services to the consumers and helps to continue the rapid growth regarding the marketing policies. The concept of competition is one of the much debated topics regarding the controlling market policies and implementation of the same[8]. Therefore, there is a necessity to protect the provisions of the competition to secure the interest of the society and the consumer as well and the priority of the market is also to be enlightened through this. Article 101 to 109 of the TFEU has discussed about the provisions regarding the rules regarding competition and its effects on the markets. There are certain provisions regarding the prohibition of the anti- competitive agreements. The concept of the competition policies is to be unprotected due to many reasons such as the dominancy of the private firms and the restrictive provisions taken by the internal market cartels. The European Union has taken an attempt, by implementing several treaties to protect the competition policies.   
Objective
The main objectives of the competition policies are to restrict the cartels, which are tried to prohibit the competition policies. It is to be stated that if there is no protective policies taken for the security of the competition policies, the price of the goods will be at hike. A linear mentality has been observed in the private sectors and a dominant mentality has been grown up within the society. The benefits of the competition are wide in nature and therefore, there is a necessity to implement the policies in the every stages of the society. An effort has been made to implement the policies regarding the transport, energy and telecommunication department and the objective of the same is to control the unfair advantage. The aim of the competition policies is to promote the general economic welfare to secure the interest of the consumers.
Development
Among the most success stories of the European Union, competition policy are most significant in nature[9]. All the member states of the European Union have a lean over the delegation of the competition policies. The development regarding the competition policies has been started after certain treaties had been passed to secure the market policies. Certain law has been passed to protect the interest of the internal market policies and it has been stated by the Court of Justice that the principles of the competition policies are important to follow up. Certain reformatory steps had been taken in the area of merger control and antitrust. The impact of the competition rules are developed with two dimensions[10]. The first part consists of certain set of rules for the betterment of the competition policies. The second dimension has certain external effect and the outcome of the same creating impact on the European business and consumers. The developments regarding the competition policies are positive in nature and therefore, the European Union has become the leading jurisdiction regarding the anti-trust matters.
Challenges:
It is true that the competition policies have made a huge success since many years and the aftermath effect of the same leads the European Union in its highest peak in the internal markets. However, over some times, the policy has to face certain challenges regarding the consumer affairs and the political environment has become conservative in nature. Certain provisions that are engraved in the Article 102 of the treaty have been contained excessive pricing catalogue. It is important to regulate the price policies as the interest of the consumers are very much affected by the price policies. In the recent situation, regulatory interventions are taking the place of the competition policies. The reason behind the same can be the potentiality of the regulatory intervention than the competition policies. 
EU commission
The European Union Commission is an institution of the European Union. It is solely responsible for upholding the EU treaties and managing the everyday business of the Union [11]. It operates from its headquarters located at Brussels, Belgium and also from Luxemburg. The researcher has highlighted on the role of the mentioned administrative body in protecting the rights of the individuals [12]. Consumer protection has been regarded as one of the top agendas of the commission since the last decade. Earlier the commission was much dedicated in creati9ng a global as well as a local market for the different goods and services of the member states. However, the paradigm shift of the new and challenging market conditions have forced the Commission to shift its focus into protecting the consumer rights of the individuals. The charter of fundamental rights and the European treaties such as the single European Act guarantee a high level of protection for the customers in the European Union. The legislation constructed by the European Commission guarantees consumers;

Fair treatment
The products that meets the standard guidelines of the European Commission
There is a clause in the legislation which ensures the right to redress if something or the other goes wrong

The European Commission takes certain steps to secure the rights of the consumers. There are number of policies that determine the safety of the food, safety of the products and the protection of the information. All the consumer related products and the other products that are imported and exported in and from the EU premises must abide by the specific rules as because failure to follow the specific rules that will attract penalties and seizures.
Safeguarding consumer welfare
Meaning
The European legislation formulated by the European Commission has formulated a clear and transparent consumer protection policy to protect the interests of the customers. The consumers and marketing legislation of the country have concentrated on protecting the economic interests of the consumers. The following can be defined as the set of laws that helps to curb the unfair consumer and commercial practices that are practiced by different organizations in and outside Europe. This may be in the form of misleading advertisements, problems in consumer contract laws [13]. The commission looks after these false and misleading advertisements and ensures that the consumers are not flown away by such wrong advertisements. The European Union Consumer Laws consists of some key legislative initiatives namely;

The directive that are involved in assessing the unfair terms of the contract- The legislation prepared by the European Commission has a special directive that comes to the rescue of the customers who may be victims of unfair terms in the consumer contracts of the organization.
The directive related to consumer rights- The protection of the consumer rights is one of the main objectives that is outlined in the legislation. The directive ensures the protection of the consumer in both demographic respect and also contracts negotiated away from the business premises as well as in respect of other aspects of consumer contracts. The directives are also applicable on doorstep selling and other forms of selling like online selling and phone selling.
The directive related to sales and guarantees- The following directive covers certain aspects that relates to the sale of consumer goods and associated guarantees.

 
Objective  
As mentioned earlier the formulation of different articles and laws by the European Commission since the last decade has had the sole aim and objective to protect the interest of the customers inside the European Union[14]. Articles 101 and 102 of the European Commission legislation forms the legal basis for establishment of different measures that are aimed at the creation and the control of the internal market within the European Union. The act ensures a detailed security arrangement including the already mentio0ned consumer protection and updating the law with new developments that are based on scientific facts. The main objectives of the Articles are;

Directly or indirectly fix the purchase or the selling prices or any other trading conditions.
Sharing the sources of supply or the markets
Applying the same conditions to equal transactions with the other trading parties
Making the conclusion of contracts subject to the acceptance by the other parties of supplementary obligations which are based on commercial usage and have no connection with the subject of the mentioned contracts[15].

Some of the Sectoral measures of the European Union Commission are;

Consumer Groups
Consumer Education
Consumer Information
Enforcement of the consumer rights

Importance
Some of the key factors that makes the European legislation one of the most important are;

Protects the interests of the consumers
Helps the consumers to select the right product
Helps to increase the quality of goods and services in the European zone
It ensures transparency which curbs any sort of menace while serving the consumers
It provides the customers with efficient and healthy products
It ensures the growth of the market
The Legislation is designed in an appropriate way and to regulate and control the market
Upgrading the policies and maintain the standard guidelines is one of the key tasks of the legislation process

 
Conclusion
Therefore, from the above named discussion, it is to be understood that the Treaty regarding the foundation of the European Union has delivered certain procurement regarding the implementation of the policies on competition matter[16]. There are certain treaties implemented to regulate the competition within the provinces of the European Union and among all the treaties, Treaty of Functioning of the European Union (TFEU) is one of the most important in this case[17]. The subject of the case is evolved with two provisions of the treaty that are Article 101 and Article 102. Article 101 is a prohibitory section that restricts them the market operators who wanted to stop the competitive mentality. Competition provokes the various companies that are involved in the process of providing goods and services to the consumers and helps to continue the potential growth regarding the marketing policies. Article 101 to 109 of the TFEU has discussed about the provisions regarding the rules of competition and its effects on the markets. The European legislation formulated by the European Commission has formulated a transparent consumer protection policy to secure the interests of the customers. It has been observed later that the European Union has shifted its mentality from the protection of competition law to safeguards of the consumers. One of the main reasons behind the same is that there are certain loopholes have been cropped up regarding the competition policies. It is a fact that the competition policies had provided many opportunities to the European Union and therefore, it is important to implement necessary steps to lubricate the way of the competition policies and intervention of the Court of Justice is important in this regard.  
 
References
Baker, Jonathan B., and Steven C. Salop. “Antitrust, competition policy, and inequality.” Geo. LJ Online 104 (2015): 1.
Bourgeois, Jacques. “Competition policy: the poor relation in the European Union free trade agreements.” The European Union in the world: essays in honor of Marc Maresceau. Martinus Nijhoff, 2014. 381-397.
Buonanno, Laurie, and Neill Nugent. Policies and policy processes of the European Union. Palgrave macmillan, 2013.
Crouch, Colin. “Introduction: labour markets and social policy after the crisis.” Transfer: European review of labour and research 20.1 (2014): 7-22.
Hix, Simon. What’s Wrong with the Europe Union and How to Fix it. John Wiley & Sons, 2013.
Jones, Alison, and Brenda Sufrin. EU competition law: text, cases, and materials. oxford university Press, 2016.
Kaczorowska-Ireland, Alina. Competition Law in the CARICOM Single Market and Economy. Routledge, 2014.
McCormick, John. Understanding the European Union: a concise introduction. Palgrave Macmillan, 2014.
McLean, Melanie. The Hidden Cost of Cheap Food: A Critical Account of Competition Law and Supermarket Dominance. Diss. Macquarie University, Faculty of Arts, Macquarie Law School, 2014.
Nugent, Neill. The government and politics of the European Union. Springer, 2017.
Smith, Karen E. European Union foreign policy in a changing world. John Wiley & Sons, 2013.
Wallace, Helen, Mark A. Pollack, and Alasdair R. Young, eds. Policy-making in the European Union. Oxford University Press, USA, 2015.
Weatherill, Stephen. EU consumer law and policy. Edward Elgar Publishing, 2013.
Whish, Richard, and David Bailey. Competition law. Oxford University Press, USA, 2015
[1] Wallace, Helen, Mark A. Pollack, and Alasdair R. Young, eds. Policy-making in the European Union. Oxford University Press, USA, 2015.
[2] Nugent, Neill. The government and politics of the European Union. Springer, 2017.
[3] Bourgeois, Jacques. “Competition policy: the poor relation in the European Union free trade agreements.” The European Union in the world: essays in honor of Marc Maresceau. Martinus Nijhoff, 2014. 381-397.
[4] Nugent, Neill. The government and politics of the European Union. Springer, 2017.
[5] McCormick, John. Understanding the European Union: a concise introduction. Palgrave Macmillan, 2014.
[6] Smith, Karen E. European Union foreign policy in a changing world. John Wiley & Sons, 2013.
[7] Whish, Richard, and David Bailey. Competition law. Oxford University Press, USA, 2015
[8] Jones, Alison, and Brenda Sufrin. EU competition law: text, cases, and materials. oxford university Press, 2016.
[9] Crouch, Colin. “Introduction: labour markets and social policy after the crisis.” Transfer: European review of labour and research 20.1 (2014): 7-22.
[10] Smith, Karen E. European Union foreign policy in a changing world. John Wiley & Sons, 2013.
[11] Hix, Simon. What’s Wrong with the Europe Union and How to Fix it. John Wiley & Sons, 2013.
[12] Jones, Alison, and Brenda Sufrin. EU competition law: text, cases, and materials. oxford university Press, 2016.
[13] Weatherill, Stephen. EU consumer law and policy. Edward Elgar Publishing, 2013
[14] Crouch, Colin. “Introduction: labour markets and social policy after the crisis.” Transfer: European review of labour and research 20.1 (2014): 7-22.
[15] McLean, Melanie. The Hidden Cost of Cheap Food: A Critical Account of Competition Law and Supermarket Dominance. Diss. Macquarie University, Faculty of Arts, Macquarie Law School, 2014.
[16] Whish, Richard, and David Bailey. Competition law. Oxford University Press, USA, 2015.
[17] Wallace, Helen, Mark A. Pollack, and Alasdair R. Young, eds. Policy-making in the European Union. Oxford University Press, USA, 2015.

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