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Week4 EU Law and Global Business Ethics - Coggle Diagram
Week4
EU Law and
Global Business Ethics
Economic integration in Europe
European Coal and Steel Community (1952)
European Atomic Energy Community (1985)
Economic union (1993)
Monetary union (1999)
European union (1993)
Brexit (2016)
Supranational law
European Court of Justice
European law is directly applicable in its member states
European law is superior to domestic law
Free trade under the EU
The four freedoms
Free movement of goods
Ban on fiscal restrictions
Article 30 TFEU
All import and export duties are forbidden
All charges having an equivalent effect (CEE) are equally prohibited
Exception: Any fee that is used to directly cover the costs of services provided for by a member state to an importing/exporting company
Article 110 TFEU
Internal(national) taxation may not be abused to discriminate against foreign products → Forbids discrimination of foreign products through national taxation such as VAT or excise duties
Elimination of quantitative restrictions
Article 34 &35 TFEU
Measure Having Equivalent Effect (MEE):
domestic rule that has the same effect as a quantitative restriction → Discriminatory effect
Quantitative restrictions on imports and exports are prohibited.
Cassis de Dijon ruling
The principle of mutual recognition
The rule of reason doctrine
Sales modality
A sales modality is a trade rule about the circumstances under which a product can be sold
Article 36 TFEU
Exemption to the prohibition to quantitative restrictions
on grounds of public morality public policy or security, the protection of health and life of humans, etc.
Free movement of people
Article 20 TFEU
(European citizenship)
EU citizens have the right to move and reside freely within the territory of the Member States
Who can invoke this right?
Applies to all European citizens + non-EU citizens who are a family member of a European citizen etc.
What does this right to move and reside exactly mean?
Four degrees in which European citizens may enter and reside in another country
Schengen Area
Free movement of workers
Article 45 TFEU
Prohibits discrimination in the access to employment, and discrimination while being employed
Article 45 (4) TFEU:
Exemption that when people are employed in the public service sector, discrimination on the grounds of nationality might be allowed
Article 49 TFEU
Freedom of establishment
: the right to have access to self-employment in the host country
& the right to effectively exercise this right once established
Article 54 TFEU
Companies or firms formed in accordance with the law of a Member State and having their registered office ...... shall be treated the same way as natural persons who are nationals of Member States
Exceptionally, the court accepts a barrier to trade when the measure is proportionate and needed to protect the public interest
Free movement of services
Article 56 TFEU
Stipulates the freedom to provide and receive services in the EU (Direct and indirect barriers to providing of services is prohibited)
Exemption that the Court may accept a barrier to trade when the measure is proportionate and needed to protect the public interest
Free movement of capital
Article 64 TFEU
Prohibits restrictions on the free movement of capital and payments
Trade barriers may be justified when proportionate to realize a legitimate goal in the protection of public interest
Harmonization of law
Primary legislation are the treaties that are signed and ratified by the EU Member States (Most important is TFEU)
Secondary legislation are the laws produced by the European legislature, based on and authorized by the primary legislation
Regulation
Directives
Decision
Recommendations and opinions
Competition rules
The prohibition of cartels
Distortion of competition
(Article 101 TFEU)
The fixing of purchase or selling prices
Limitation or control of production, markets, technical development, or investment to only a few
The sharing of markets or sources of supply
Applying dissimilar conditions to the same transactions with other trading parties, thereby placing them at a competitive disadvantage
Forcing the other party to accept contractual terms with obligations that are not related to the actual contract
Specify the form of cartel:
an agreement or concerted practice
Undertaking (Who can violate the prohibition to Cartels)
Exemptions to the prohibition of cartels
Benefits the consumer
The cartel must be indispensable to realize the intended goals
Improve the production or distribution of goods or contribute to technical or economic progress
The cartel must not distort competition sustantially
The prohibition to abuse a dominant position
Specify the meaning of abuse
(Article 102 TFEU)
Dominant position
Relevant market
Rules on concentrations