International Construction Law Review
ENFORCEMENT OF EU COMPETITION LAW—IMPLICATIONS FOR THE EUROPEAN COMMUNITY CONSTRUCTION INDUSTRY
DR DEE M DAVENPORT
Senior Lecturer, Department of Built Environment, University of Central Lancashire, MSc Construction Law Dissertation Tutor
1. INTRODUCTION
This paper examines the development of the enforcement of EU law in relation to competition policy and with specific reference to the European construction industry. Enforcement covers general approaches including the procedures set out in Article 226 (169)1
and Article 234 (177) and the significant roles played by the Commission and by the European Court of Justice (ECJ) in their application. Article 226 gives the Commission power to bring proceedings against a member state in breach of EU obligations. Article 234 covers the preliminary rulings procedure which has been instrumental in developing the principles of direct effect and the primacy of EU law whilst establishing an important working relationship between the national and Community legal systems. In the case of competition law there are specific rules relating to enforcement over and above the application of general enforcement principles described above and in this particular field the Commission has wielded considerable power through the application of Regulation 17. This Regulation, originally designed to enforce competition rules in a Community of six member states is now undergoing reform to meet the heavy demands now placed upon the Commission in the fight against restrictive and anti-trust practices in a growing European community.
A principal objective of the European Union, enshrined in Article 14 (7a) of the original Treaty, is the creation and maintenance of a single market in which the free movement of goods, persons, services and capital is ensured. This requires fair and open competition through the removal of Government barriers to trade and the prohibition of actions by undertakings which restrict trade and competition. The construction industry of each member state provides services through professional design and project management consultancies, contractors and specialists, and also through the manufacture and distribution of building materials and components. The creation of a single market has resulted in a great increase of cross-border activity which has had a significant impact upon the operations and agreements formed by
[2002
The International Construction Law Review
188