Problems Related to Determining of a Single Economic Entity under Competition Law Cover Image

Problems Related to Determining of a Single Economic Entity under Competition Law
Problems Related to Determining of a Single Economic Entity under Competition Law

Author(s): Raimundas Moisejevas, Danielius Urbonas
Subject(s): Business Economy / Management, Law on Economics
Published by: Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego
Keywords: competition law; concept of the control; decisive influence; one economic unit; parent company; single economic entity; subsidiary; undertaking

Summary/Abstract: The article explores the problems related to the determination of a single economic unit under competition law. The first part of the article addresses the concept of a single economic entity. It is presumed that companies belonging to a group are separate undertakings, but under certain circumstances the group might constitute a single economic entity. The second part refers to the analysis of the concept of ‘control’, which is the main criterion describing the relationship inside a group of companies. The third part refers to the analysis of the cases when de jure separate undertakings are recognized as a single economic entity. When a company exercises decisive influence over another company, they form a single economic entity and, hence, are part of the same undertaking. Decisive influence is the most important criterion for recognizing that de jure separate undertakings constitute a single economic unit. Finally, the fourth part refers to problems concerning the presumption of the decisive influence. It is presumed that a parent company exercises a decisive influence over a subsidiary where it holds 100 percent of capital. Thus, separate companies are recognized as a single economic unit, if 100 percent of a company’s capital is owned by the controlling entity

  • Issue Year: 10/2017
  • Issue No: 16
  • Page Range: 107-125
  • Page Count: 19
  • Language: English