The Promotion of Free Trade among Countries - Research Paper Example

As a part of this initiative, Article 81 of the Treaty is geared towards preventing anti-trust initiatives so that business actions such as formulation of cartels and monopolies would be prohibited under the provisions of this article, and the assumption of a dominant position in the market would not be favored under the terms of the EC Treaty, neither would they be tolerated under the free and fair trading standards that form part of the objectives of the World Trade Organization. As a part of this initiative, Article 81 of the Treaty is geared towards preventing anti-trust initiatives so that business actions such as formulation of cartels and monopolies would be prohibited under the provisions of this article, and the assumption of a dominant position in the market would not be favored under the terms of the EC Treaty, neither would they be tolerated under the free and fair trading standards that form part of the objectives of the World Trade Organization.

 Article 82 of the EC Treaty states: “Any abuse by one or more undertakings of a dominant position within the common market or in a substantial part of it shall be prohibited as incompatible with the common market in so far as it may affect trade between the Member States.” (www.cerna.ensmp.fr). In defining the parameters that would constitute such abuse, four specific instances have been identified, all of which would constitute an abuse of a dominant position. These are as follows:(a) Imposing through direct or indirect means, unfair selling or purchase prices(b) Limiting production, technical development or the development of markets (c) In the case of equivalent transactions being carried out with different parties, the imposition of differential conditions for each of those parties(d) By making the process of contract culmination dependent upon the parties signing their agreement to concomitant requirements that may not have much to do with the actual substance of the contract.