"The goal of the European Community’s competition policy is to protect and develop effective competition in the common market.

Competition is a basic mechanism of the market economy involving supply and demand. Suppliers (producers, traders) offer goods or services on the market in an endeavour to meet demand (from intermediate customers or consumers). Demand seeks the best combination of quality and price for the products it requires. Rivalry between suppliers (i.e. competition) leads to the most efficient response to demand. In addition to being a simple and efficient means of guaranteeing consumers the best choice in terms of quality and price of goods and services, it also forces firms to strive for competitiveness and economic efficiency."

The EU Competition policy affects all businesses, including SME's, that could potentially manipulate market conditions or restrict competition. Its has a greater focus on Medium to Large businesses who may have a market share of greater than 30%.

It is important that managers of small business understand the rules, but most importantly understand the "Hardcore Restrictions" that apply to all business trading throughout the EU.

The legislative framework of European competition policy is provided by the EC
Treaty (Articles 81–89). The articles are extensive, but the commission has produced a shortened and simplified version that can be downloaded from their website.

The link below is to the Legislation and Vertical Agreements section of the European Commission Competition website. At the bottom of the page, under the title Related Documents, is a document entitled "Brochure: The Competition Rules for Supply and Distribution Agreements". Click the button below the title to download the brochure in your language (en for English).