CHAPTER I — Rules applying to undertakings
Commission guidelines on the application of competition rules to agriculture
Save as otherwise provided in this Regulation, and in accordance with Article 42 TFEU, Articles 101 to 106 TFEU and the implementing provisions thereto shall, subject to Articles 207 to 210 of this Regulation, apply to all agreements, decisions and practices referred to in Article 101(1) and Article 102 TFEU which relate to the production of, or trade in, agricultural products.
In order to ensure the functioning of the internal market and the uniform application of Union competition rules, the Commission and the competition authorities of the Member States shall apply the Union competition rules in close cooperation.
In addition, the Commission shall, where appropriate, publish guidelines to assist the national competition authorities, as well as undertakings.
Relevant market
The definition of the relevant market is a tool to identify and define the boundaries of competition between undertakings, and shall be founded on two cumulative elements:
(a)
the relevant product market: for the purposes of this Chapter, "product market" means the market comprising all those products which are regarded as interchangeable or substitutable by the consumer by reason of the products' characteristics, their prices and their intended use;
(b)
the relevant geographic market: for the purposes of this Chapter, "geographic market" means the market comprising the area in which the undertakings concerned are involved in the supply of the relevant products, in which the conditions of competition are sufficiently homogeneous and which can be distinguished from neighbouring areas, particularly because the conditions of competition are appreciably different in those areas.
Dominant position
For the purposes of this Chapter, "dominant position" means a position of economic strength enjoyed by an undertaking which enables it to prevent effective competition being maintained in the relevant market by giving it the power to behave to an appreciable extent independently of its competitors, customers and ultimately of consumers.
Exceptions for the objectives of the CAP and farmers and their associations
1. Article 101(1) TFEU shall not apply to the agreements, decisions and practices referred to in Article 206 of this Regulation necessary for the attainment of the objectives set out in Article 39 TFEU.
Article 101(1) TFEU shall not apply to agreements, decisions and concerted practices of farmers, farmers' associations, or associations of such associations, or producer organisations recognised under Article 152 of this Regulation, or associations of producer organisations recognised under Article 156 of this Regulation, which concern the production or sale of agricultural products or the use of joint facilities for the storage, treatment or processing of agricultural products, unless the objectives of Article 39 TFEU are jeopardised.
This paragraph shall not apply to agreements, decisions and concerted practices which entail an obligation to charge an identical price or by which competition is excluded.
2. Agreements, decisions and concerted practices which fulfil the conditions referred to in paragraph 1 of this Article shall not be prohibited, no prior decision to that effect being required.
In any national or Union proceedings for the application of Article 101 TFEU, the burden of proving an infringement of Article 101(1) TFEU shall rest on the party or the authority alleging the infringement. The party claiming the benefit of the exemptions provided in paragraph 1 of this Article shall bear the burden of proving that the conditions of that paragraph are fulfilled.
Agreements and concerted practices of recognised interbranch organisations
1. Article 101(1) TFEU shall not apply to agreements, decisions and concerted practices of interbranch organisations recognised under Article 157 of this Regulation with the object of carrying out the activities listed in point (c) of Article 157(1) and, for the milk and milk products sector, in point (c) of Article 157(3) of this Regulation, and, for the olive oil and table olives and tobacco sectors, in Article 162 of this Regulation.
2. Paragraph 1 shall apply provided that:
(a)
the agreements, decisions and concerted practices referred to therein have been notified to the Commission; and
(b)
within two months of receipt of all the details required the Commission has not found that those agreements, decisions or concerted practices are incompatible with Union rules.
Where the Commission finds that the agreements, decisions or concerted practices referred to in paragraph 1 are incompatible with Union rules, it shall set out its finding without applying the procedure referred to in Article 229(2) or (3).
3. The agreements, decisions and concerted practices referred to in paragraph 1 may not be put into effect before the lapse of the two-month period referred to in point (b) of the first subparagraph of paragraph 2.
4. Agreements, decisions and concerted practices shall in any case be declared incompatible with Union rules if they:
(a)
may lead to the partitioning of markets within the Union in any form;
(b)
may affect the sound operation of the market organisation;
(c)
may create distortions of competition which are not essential to achieving the objectives of the CAP pursued by the interbranch organisation activity;
(d)
entail the fixing of prices or the fixing of quotas;
(e)
may create discrimination or eliminate competition in respect of a substantial proportion of the products in question.
5. If, following the expiry of the two-month period referred to in point (b) of the first subparagraph of paragraph 2, the Commission finds that the conditions for applying paragraph 1 have not been met, it shall, without applying the procedure referred to in Article 229(2) or (3), take a decision declaring that Article 101(1) TFEU applies to the agreement, decision or concerted practice in question.
That Commission decision shall not apply earlier than the date of its notification to the interbranch organisation concerned, unless that interbranch organisation has given incorrect information or abused the exemption provided for in paragraph 1.
6. In the case of multiannual agreements, the notification for the first year shall be valid for the subsequent years of the agreement. However, in that event, the Commission may, on its own initiative or at the request of another Member State, issue a finding of incompatibility at any time.
7. The Commission may adopt implementing acts laying down the measures necessary for the uniform application of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).
CHAPTER II — State aid rules
Application of Articles 107 to 109 TFEU
1. Articles 107 to 109 TFEU shall apply to the production of, and trade in, agricultural products.
2. By way of derogation from paragraph 1, Articles 107 to 109 TFEU shall not apply to payments made by Member States pursuant to and in conformity with either of the following:
(a)
the measures provided for in this Regulation which are partly or wholly financed by the Union;
(b)
Articles 213 to 218 of this Regulation.
National payments related to wine support programmes
By way of derogation from Article 44(3), Member States may grant national payments in accordance with the Union rules on State aid for the measures referred to in Articles 45, 49 and 50.
The maximum aid rate as laid down in the relevant Union rules on State aid shall apply to the global public financing, including both Union and national funds.
National payments for reindeer in Finland and Sweden
Subject to an authorisation by the Commission adopted without applying the procedure referred to in Article 229(2) or (3), national payments for the production and marketing of reindeer and reindeer products (CN codes ex 0208 and ex 0210 ) may be made by Finland and Sweden insofar as they do not entail any increase in traditional levels of production.
National payments for the sugar sector in Finland
Finland may make national payments of up to EUR 350 per hectare per marketing year to sugar beet growers.
National payments for apiculture
Member States may make national payments for the protection of apiaries disadvantaged by structural or natural conditions or under economic development programmes, except for those allocated for production or trade.
National payments for distillation of wine in cases of crisis
1. Member States may make national payments to wine producers for the voluntary or mandatory distillation of wine in justified cases of crisis.
Those payments shall be proportionate and shall allow that crisis to be addressed.
The overall amount of payments available in a Member State in any given year for such payments shall not exceed 15 % of the globally available funds per Member State for that year as laid down in Annex VI.
2. Member States wishing to make use of the national payments referred to in paragraph 1 shall submit a duly substantiated notification to the Commission. The Commission shall decide, without applying the procedure referred to in Article 229(2) or (3), whether the measure is approved and whether the payments may be made.
3. The alcohol resulting from distillation referred to in paragraph 1 shall be used exclusively for industrial or energy purposes so as to avoid any distortion of competition.
4. The Commission may adopt implementing acts laying down the measures necessary for the application of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).
National payments for distribution of products to children
Member States may, in addition to Union aid provided for in Articles 23 and 26, make national payments for supplying the products to children in educational establishments or for the related costs referred to in Article 23(1).
Member States may finance those payments by means of a levy on the sector concerned or by any other contribution from the private sector.
Member States may, in addition to Union aid provided for in Article 23, make national payments for financing accompanying measures necessary to make the Union scheme for the supply of fruit and vegetable, processed fruit and vegetable and banana products effective, as referred to in Article 23(2).
National payments for nuts
1. Member States may make national payments, up to a maximum of EUR 120,75 per hectare per year, to farmers producing the following products:
(a)
almonds falling within CN codes 0802 11 and 0802 12 ;
(b)
hazelnuts or filberts falling within CN codes 0802 21 and 0802 22 ;
(c)
walnuts falling within CN codes 0802 31 00 and 0802 32 00 ;
(d)
pistachios falling within CN codes 0802 51 00 and 0802 52 00 ;
(e)
locust beans falling within CN code 1212 92 00 .
2. The national payments referred to in paragraph 1 may be paid only for a maximum area of:
Member State
Maximum area (ha)
Belgium
100
Bulgaria
11 984
Germany
1 500
Greece
41 100
Spain
568 200
France
17 300
Italy
130 100
Cyprus
5 100
Luxembourg
100
Hungary
2 900
Netherlands
100
Poland
4 200
Portugal
41 300
Romania
1 645
Slovenia
300
Slovakia
3 100
United Kingdom
100
3. Member States may make the granting of national payments referred to in paragraph 1 conditional on farmers being members of a producer organisation recognised under Article 152.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
