The interplay between the state, competition law and internal market : an analysis of article 86 EC

Abstract

In the ideal free market economy, effective competition should reign yet this is a far cry from what happens in reality, particularly since far too often State intervention comes into play. This state of affairs is reflected in the European Community where notwithstanding the presence of the Common Market, Member States continue to provide a safety net to a number of undertakings, thus creating an unequal balance amongst the economic operators in the market. The detrimental effect of such state intervention in the economic functioning of the Community coupled with the growing public realisation that growth and prosperity are more likely to be achieved through free competition has led the Commission as well as the Court of Justice to seek a workable solution - the liberalisation process and the promotion of undistorted competition. This has led to the revival of Article 86 EC. Essentially, this provision ensures that Member States act towards public undertakings in a manner compatible with Community law, thus securing the proper functioning of the Common Market by maintaining equality of competitive conditions between public and private undertakings. Furthermore, in order to attain a holistic approach in this regards, Article 86 has been given a wider scope of application as it is commonly combined with other Treaty provisions, primarily the EC rules on competition and the free movement provisions. Specifically, 'The interplay between the State, Competition Law and Internal Market: An analysis of Article 86 EC 'seeks to capture the dynamic mechanisms of Article 86 by providing a good overview of the underlying factors and academic arguments revolving around the intricate cobweb involving public undertakings and State measures vis-a-vis the competition provisions and the free movement rules enshrined in the Treaty particularly of goods and services. Ultimately, it seeks to investigate the existence or otherwise of guiding principles that regulate the current interplay between the Member States, EC C:ompetition law and the completion of the Internal Market.