European Business Law, the fourth volume in our series, shows how the European authorities simultaneously abolish all restrictions on access to and exercise of economic activities and support the growth of domestic markets, through the harmonization the internal legislation or the enactment of genuinely unified regulations.

European Business Law

Competition on international markets is not perfect. Almost no rule refers to the conduct of undertakings on the international markets. There is no authority responsible for regulating competition. Thus, anti-dumping measures constitute the only instrument which may be used to struggle against unfair competition practices. 

The anti-dumping regulation covers goods imported within the Union at a lesser price than the price applied on the internal market. Tariff and non-tariff barriers, non-compliance with competition rules, export tax breaks or artificially low raw material or energy prices might constitute dumping.

As an instrument to protect trade, the anti-dumping regulation is clearly distinguished from the rules regarding competition insofar as it is not the competitive structure of the market which is at stake, but the survival or maintenance of the Union industry faced with the very low price policy of exporters who are subject to clearly lower production costs or having a monetary policy in their countries of origin which favors exports. The political analysis replaces the economic analysis. As for State aid, this is more a question of assessing the fairness of conduct in a given political and economical context than analyzing its effects on the market and the benefit for the end-user. An approximation with the predatory price policy, which could be used to rationalize the analysis, is however not fully excluded.

389. Remedy against imperfect competition