European Union Law – Foundations, Internal Market & Competition

51 question-and-answer flashcards covering EU history, principles, competences, legal acts, internal market, four freedoms, competition law, merger control and state-aid rules.

Which treaty created the European Coal and Steel Community (ECSC) and in what year?

The Treaty of Paris, 1951.

What were the two main goals of the ECSC?

Promote peace among Member States and regulate trade in coal and steel.

Which two Communities were founded by the Treaties of Rome in 1957?

The European Economic Community (EEC) and Euratom.

Name the treaty that introduced the ‘three-pillar’ structure of the EU and its year.

The Maastricht Treaty, 1992.

Which treaty abolished the three-pillar system and made the EU a single legal personality?

The Lisbon Treaty, 2007/2009 (signed 2007, entered into force 2009).

Under Lisbon, what are the titles of the two core treaties that now form EU primary law?

The Treaty on European Union (TEU) and the Treaty on the Functioning of the EU (TFEU).

What is the principle of sincere (loyal) cooperation?

Member States must facilitate the implementation of EU law and refrain from measures jeopardising EU objectives.

Explain the principle of conferral of powers.

The EU may act only within the competences expressly conferred on it by the Treaties.

Distinguish exclusive, shared and supporting EU competences with one example each.

Exclusive: customs union/competition; Shared: internal market/environment; Supporting: education/tourism.

Which two principles limit how the EU uses its competences once conferred?

Subsidiarity and proportionality.

State the test contained in the principle of subsidiarity.

The EU should act only if objectives cannot be sufficiently achieved by Member States and can be better achieved at Union level.

What are the three main sources of EU primary law?

TEU, TFEU and the Charter of Fundamental Rights.

Which secondary act is ‘directly applicable’ and binding in its entirety on Member States and individuals?

A Regulation.

Does a Directive have direct applicability?

Generally no; it must be transposed into national law, though under certain conditions it may have direct effect (usually vertical).

To whom is an EU Decision binding?

Only the addressee(s) specified in the Decision.

Give two soft-law instruments of secondary EU law that are not legally binding.

Recommendations and Opinions.

Contrast supranational and intergovernmental decision-making regarding voting rules.

Supranational areas use majority voting; intergovernmental areas generally require unanimity or consensus.

Which policy fields remain largely intergovernmental after Lisbon?

Common Foreign and Security Policy (CFSP) and parts of Justice and Home Affairs (JHA).

Define the EU ‘internal market’ as set out in the TFEU.

An area without internal frontiers where the free movement of goods, persons, services and capital is ensured.

List three objectives of creating the internal market.

Remove cross-border barriers, increase competition/efficiency, and broaden consumer choice.

Differentiate direct and indirect discrimination under EU law.

Direct: explicitly based on nationality; Indirect: based on criteria like language or residence that disproportionately affect non-nationals.

What is ‘reverse discrimination’ in EU law?

When a Member State treats its own nationals less favourably than nationals of other Member States; lawful under EU law but may breach national equality rules.

What key financial barrier is prohibited between Member States under Art. 30 TFEU?

Internal tariffs or charges having equivalent effect to customs duties.

Give three examples of ‘measures having equivalent effect’ (MEEs) to quantitative restrictions.

Product standards, language labelling requirements, and licensing systems that hinder market access.

Who qualifies for free movement of workers under Art. 45 TFEU?

EU/EEA citizens and their dependants.

Name two rights granted to workers under Art. 45 TFEU besides taking up employment.

The rights to enter and reside in the host Member State and to remain after employment ends.

Mention one public service exemption to free movement of workers.

Employment in the police, armed forces or core state administration.

Which Treaty article guarantees freedom of establishment, and what does it allow?

Article 49 TFEU; allows EU citizens and companies to set up and manage permanent economic activities in another Member State.

What are the three cross-border elements relevant to the freedom to provide services?

The service provider, the service itself, or the recipient crossing borders.

Give two examples of capital movements protected under Art. 63 TFEU.

Cross-border transfers of investments or acquisition of real estate in another Member State.

What is a ‘golden share’?

Special voting or veto rights retained by a Member State in a privatised company; may restrict free movement of capital.

State the main goal of EU competition law.

To safeguard effective competition for the benefit of consumers and the internal market.

Which EU institution primarily enforces competition law?

The European Commission.

What is prohibited by Article 101(1) TFEU?

Agreements or concerted practices between undertakings that may affect trade between Member States and prevent, restrict or distort competition.

Give two classic examples of horizontal cartel behaviour.

Price fixing and market sharing between competitors at the same market level.

Under which conditions can an otherwise anti-competitive agreement be exempted under Art. 101(3) TFEU?

If it improves production or distribution or promotes technical/economic progress, allows consumers a fair share, is necessary and does not eliminate competition.

What market share often indicates a ‘dominant position’ for Art. 102 TFEU purposes?

Generally above 40 % in the relevant market.

Name two typical abuses of a dominant position.

Unfair pricing (excessive or predatory) and tying unrelated products or services.

Which three transaction forms fall under EU merger control?

Mergers creating a new entity, acquisitions of control, and full-function joint ventures.

Explain the ‘one-stop shop’ principle in EU merger control.

The Commission has exclusive competence to assess concentrations with an EU dimension, avoiding multiple national filings.

What is the purpose of the ‘guillotine’ mechanism in merger review?

A short first-phase review deadline, after which a deal is cleared unless the Commission opens an in-depth second-phase investigation.

Define ‘state aid’ under Art. 107(1) TFEU.

Any aid granted by a Member State through state resources that distorts or threatens to distort competition by favouring certain undertakings and affects trade between Member States.

Give two forms of state aid other than direct subsidies.

Tax exemptions and state guarantees or debt write-offs.

Name one automatic (‘legal’) exemption from the state-aid prohibition.

Aid to individual consumers of a social character or compensation for natural disasters.

What is the de minimis rule in state-aid law?

Aid below a specified threshold (e.g., €200 000 over three years) is deemed not to affect trade and is exempt from notification.