This article explains the main competition rules in European Community in general. The basic norm of competition rule in European Community (EC) is determined in article 3 (g) EC Treaty. Article 3 (g) provide that "the institution of a system ensuring that competition in the internal market is not distorted". To ensure workable competition in EC were set out in article 81 and 82 EC Treaty the Competition rule. Article 81 (1) prohibits as incompatible with common market, collusion between undertakings that may affect trade member states and has the object or effect of restricting competition within the common market. But not all agreements that perceptibly restrict competition and may effect inter-state trade are prohibited. Some forms of collaboration restrictive of competition may have beneficial effects and are capable exemption by the Commission. By virtue of article 81 (3) the prohibition in article 81 (1) may be declared inapplicable to any agreements or category of agreements provided that they have certain characteristics. This article will elaborate the prohibition of article 81 (1) and the exemption of article 81 (3) and as well the abuse of dominant position of article 82 EC Treaty.
