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

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Moisejevas R., Urbonas D.

Yearbook of Antitrust and Regulatory Studies

2017

vol. 10(16)

107-126

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.

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1 Yearbook of Antitrust and Regulatory Studies

1 Moisejevas R.

1 Urbonas D.

1 2017

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