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Chapter 1 1.1Competition Law This chapter will firstly explain competition law of the European Union, with its objectives on how to provide a sufficient system for all Member States undertakings operating within the EU. In order to be able to explain in detail how competition operates within the markets, theoretical imput is looked at, to show the extreme consequences of the market at either end with and without the regulations governed by competition law. A large part of this chapter will lend itself to the detailed explanation of vertical agreements, in their various formations, benefits of and their potential harmful effects, leading to a discussion on whether vertical restraints are necessary in achieving the main competition policy objective. A brief introduction of Article 81 is made in relation to its application of vertical restraints. 1.2 Competition Policy The overriding objectives of Competition law concern the efficiency between producers, suppliers and retailers, the protection...

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