Common use of Fair Competition Clause in Contracts

Fair Competition. 1. The Parties acknowledge that it is their joint objective to have a fair and competitive environment and fair and equal opportunity for the companies involved in air transport services of both Parties to compete in operating the agreed services on the specified routes. Therefore, the Parties shall take all appropriate measures to ensure the full enforcement of this objective. 2. The Parties assert that free, fair and undistorted competition is important to promote the objectives of this Agreement and note that the existence of comprehensive competition laws and of an independent competition authority as well as the sound and effective enforcement of their respective competition laws are important for the efficient provision of air transport services. The competition laws of each Party addressing the issues covered by this Article, as amended from time to time, shall apply to the operation of the air carriers within the jurisdiction of the respective Party. The Parties share the objectives of compatibility and convergence of competition law and of its effective application. They will cooperate as appropriate and where relevant on the effective application of competition law, including by allowing the disclosure, in accordance with their respective rules and jurisprudence, by their respective companies or other nationals of information pertinent to a competition law action by the competition authorities of the other Party. 3. Nothing in this Agreement shall affect, limit or jeopardise in any way the authority and powers of the relevant competition authorities and courts of either Party (and of the European Commission), and all matters relating to the enforcement of competition law shall continue to fall under the exclusive competence of those authorities and courts. Therefore, any action taken pursuant to this Article by a Party shall be without prejudice to any possible actions taken by those authorities and courts. 4. Any action taken pursuant to this Article shall fall under the exclusive responsibility of the Parties and shall be exclusively directed towards the other Party or to companies providing air transport services to/from the Parties. Such action shall not be subject to the dispute settlement procedure foreseen in Article 24. 5. Each Party shall eliminate all forms of discrimination or unfair practices which would adversely affect the fair and equal opportunity of the companies involved in air transport services of the other Party to compete in providing air transport services. 6. Neither Party shall provide or permit public subsidies or support to any company if these subsidies or support would significantly and adversely affect the fair and equal opportunity of the companies of the other Party to compete in providing air transport services. Such public subsidies or support may include, but are not limited to: cross-subsidisation; the setting-off of operational losses; the provision of capital; grants; guarantees; loans or insurance on privileged terms; protection from bankruptcy; foregoing the recovery of amounts due; foregoing a normal return on public funds invested; tax relief or tax exemptions; compensation for financial burdens imposed by public authorities; and access on a discriminatory or non-commercial basis to air navigation or airport facilities and services, fuel, ground handling, security, computerised reservation systems, slot allocation or other related facilities and services necessary for the operation of air services. 7. If a Party provides public subsidies or support to a company, it shall ensure the transparency of such measure through any appropriate means, which may include requiring that the company identifies the subsidy or support clearly and separately in its accounts. 8. Each Party shall, at the request of the other Party, provide to the other Party within a reasonable time financial reports relating to the entities under the jurisdiction of the first Party, and any other such information that may be reasonably requested by the other Party to ensure that the provisions of this Article are being complied with. This may include detailed information relating to subsidies or support. Such information may be subject to its confidential treatment by the Party requesting access to the information. 9. Without prejudice to any action undertaken by the relevant competition authority or court for the enforcement of the rules referred to in paragraphs 5 and 6: (a) if one Party finds that a company is being subject to discrimination or unfair practices in the sense of paragraph 5 or 6 and that this can be substantiated, it may submit observations in writing to the other Party. After informing the other Party, a Party may also approach responsible government entities in the territory of the other Party, including entities at the central, regional, provincial or local level to discuss matters relating to this Article. Moreover, a Party may request consultations on this matter with the other Party with a view to solving the problem. Such consultations shall start within 30 days of the receipt of the request. In the meantime, the Parties shall exchange sufficient information to enable a full examination of the concern expressed by one of the Parties; (b) if the Parties fail to reach a resolution of the matter through consultations within 30 days of the start of consultations or consultations do not start within 30 days of the receipt of the request concerning an alleged violation of paragraph 5 or 6, the Party which requested the consultation shall have the right to suspend the exercise of the rights specified in this Agreement by the concerned companies of the other Party by refusing, revoking or suspending the operating authorisation/permit, or to impose such conditions as it may deem necessary on the exercise of such rights, or impose duties or take other actions. Any action taken pursuant to this paragraph shall be appropriate, proportionate and restricted with regard to scope and duration to what is strictly necessary. 10. Each Party shall effectively apply antitrust laws in accordance with paragraph 2, and shall prohibit companies: (a) in conjunction with any other company to enter into agreements, take decisions or engage in concerted practices which may affect air transport services to/from that Party and which have as their object or effect the prevention, restriction or distortion of competition. This prohibition may be declared inapplicable where such agreements, decisions or practices contribute to improving the production or distribution of services or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, and do not: (i) impose on the companies concerned restrictions which are not indispensable to the attainment of these objectives; (ii) afford such companies the possibility of eliminating competition in respect of a substantial part of the services in question, and (b) to abuse a dominant position in a way which may affect air transport services to/from that Party. 11. Each Party shall entrust the enforcement of the antitrust rules referred to in paragraph 10 exclusively to its relevant and independent competition authority or court. 12. Without prejudice to any action undertaken by the relevant competition authority or court for the enforcement of the rules referred to in paragraph 10, if one Party finds that a company suffers from an alleged violation of paragraph 10 and that this can be substantiated, it may submit observations in writing to the other Party. After informing the other Party, a Party may also approach responsible government entities in the territory of the other Party, including entities at the central, regional, provincial or local level to discuss matters relating to this Article. Moreover, a Party may request consultations on this matter with the other Party with a view to solving the problem. Such consultations shall start within 30 days of the receipt of the request. In the meantime, the Parties shall exchange sufficient information to enable a full examination of the concern expressed by one of the Parties. 13. If the Parties fail to reach a resolution of the matter through consultations within 30 days of the start of consultations or consultations do not start within 30 days of the receipt of the request concerning an alleged violation of paragraph 10, and provided that the relevant competent competition authority or court has found an antitrust violation, the Party which requested the consultation shall have the right to suspend the exercise of the rights specified in this Agreement by the concerned companies of the other Party by refusing, revoking or suspending the operating authorisation/permit, or to impose such conditions as it may deem necessary on the exercise of such rights, or impose duties or take other actions. Any action taken pursuant to this paragraph shall be appropriate, proportionate and restricted with regard to scope and duration to what is strictly necessary.

Appears in 3 contracts

Samples: Common Aviation Area Agreement, Common Aviation Area Agreement, Common Aviation Area Agreement

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Fair Competition. 1. The Parties acknowledge that it is their joint objective to have a fair and competitive environment and fair and equal opportunity for the companies involved in air transport services of both Parties to compete in operating the agreed services on the specified routes. Therefore, the Parties shall take all appropriate measures to ensure the full enforcement of this objective. 2. The Parties assert that free, fair and undistorted competition is important to promote the objectives of this Agreement and note that the existence of comprehensive competition laws and of an independent competition authority as well as the sound and effective enforcement of their respective competition laws are important for the efficient provision of air transport services. The competition laws of each Party addressing the issues covered by this Article, as amended from time to time, shall apply to the operation of the air carriers within the jurisdiction of the respective Party. The Parties share the objectives of compatibility and convergence of competition law and of its effective application. They will cooperate as appropriate and where relevant on the effective application of competition law, including by allowing the disclosure, in accordance with their respective rules and jurisprudence, by their respective companies or other nationals of information pertinent to a competition law action by the competition authorities of the other Partyeach other. 3. Nothing in this Agreement shall affect, limit or jeopardise in any way the authority and powers of the relevant competition authorities and courts of either Party (and of the European Commission), and all matters relating to the enforcement of competition law shall continue to fall under the exclusive competence of those authorities and courts. Therefore, any action taken pursuant to this Article by a Party shall be without prejudice to any possible actions taken by those authorities and courts. 4. Any action taken pursuant to this Article shall fall under the exclusive responsibility of the Parties and shall be exclusively directed towards the other Party or and/or to companies providing air transport services to/from the Parties. Such action shall not be subject to the dispute settlement procedure foreseen in Article 2424 of this Agreement. 5. Each Party shall eliminate all forms of discrimination or unfair practices which would adversely affect the fair and equal opportunity of the companies involved in air transport services of the other Party to compete in providing air transport services. 6. Neither Party shall provide or permit public subsidies or support to any company if these subsidies or support would significantly and adversely affect the fair and equal opportunity of the companies of the other Party to compete in providing air transport services. Such public subsidies or support may include, but are not limited to: cross-subsidisation; the setting-off of operational losses; the provision of capital; grants; guarantees; loans or insurance on privileged terms; protection from bankruptcy; foregoing the recovery of amounts due; foregoing a normal return on public funds invested; tax relief or tax exemptions; compensation for financial burdens imposed by public authorities; and access on a discriminatory or non-commercial basis to air navigation or airport facilities and services, fuel, ground handling, security, computerised computer reservation systems, slot allocation or other related facilities and services necessary for the operation of air services. 7. If a Party provides public subsidies or support to a company, it shall ensure the transparency of such measure through any appropriate means, which may include requiring that the company identifies the subsidy or support clearly and separately in its accounts. 8. Each Party shall, at the request of the other Party, provide to the other Party within a reasonable time financial reports relating to the entities under the jurisdiction of the first Party, and any other such information that may be reasonably requested by the other Party to ensure that the provisions of this Article are being complied with. This may include detailed information relating to subsidies or support. Such The submission of such information may be subject to its confidential treatment by the Party requesting access to the information. 9. Without prejudice to any action undertaken by the relevant competition authority or and/or court for the enforcement of the rules referred to in paragraphs 5 and 6:, (a) if one Party finds that a company is being subject to discrimination or unfair practices in the sense of paragraph paragraphs 5 or 6 above and that this can be substantiated, it may submit observations in writing to the other Party. After informing the other Party, a Party may also approach responsible government entities in the territory of the other Party, including entities at the central, regional, provincial or local level to discuss matters relating to this Article. Moreover, a Party may request consultations on this matter with the other Party with a view to solving the problem. Such consultations shall start within 30 days a period of the receipt of the request. In the meantime, the Parties shall exchange sufficient information to enable a full examination of the concern expressed by one of the Parties; thirty (b30) if the Parties fail to reach a resolution of the matter through consultations within 30 days of the start of consultations or consultations do not start within 30 days of the receipt of the request concerning an alleged violation of paragraph 5 or 6, the Party which requested the consultation shall have the right to suspend the exercise of the rights specified in this Agreement by the concerned companies of the other Party by refusing, revoking or suspending the operating authorisation/permit, or to impose such conditions as it may deem necessary on the exercise of such rights, or impose duties or take other actions. Any action taken pursuant to this paragraph shall be appropriate, proportionate and restricted with regard to scope and duration to what is strictly necessary. 10. Each Party shall effectively apply antitrust laws in accordance with paragraph 2, and shall prohibit companies: (a) in conjunction with any other company to enter into agreements, take decisions or engage in concerted practices which may affect air transport services to/from that Party and which have as their object or effect the prevention, restriction or distortion of competition. This prohibition may be declared inapplicable where such agreements, decisions or practices contribute to improving the production or distribution of services or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, and do not: (i) impose on the companies concerned restrictions which are not indispensable to the attainment of these objectives; (ii) afford such companies the possibility of eliminating competition in respect of a substantial part of the services in question, and (b) to abuse a dominant position in a way which may affect air transport services to/from that Party. 11. Each Party shall entrust the enforcement of the antitrust rules referred to in paragraph 10 exclusively to its relevant and independent competition authority or court. 12. Without prejudice to any action undertaken by the relevant competition authority or court for the enforcement of the rules referred to in paragraph 10, if one Party finds that a company suffers from an alleged violation of paragraph 10 and that this can be substantiated, it may submit observations in writing to the other Party. After informing the other Party, a Party may also approach responsible government entities in the territory of the other Party, including entities at the central, regional, provincial or local level to discuss matters relating to this Article. Moreover, a Party may request consultations on this matter with the other Party with a view to solving the problem. Such consultations shall start within 30 days of the receipt of the request. In the meantime, the Parties shall exchange sufficient information to enable a full examination of the concern expressed by one of the Parties. 13. If (b) if the Parties fail to reach a resolution of the matter through consultations within 30 thirty (30) days of from the start of consultations or consultations do not start within 30 days a period of the receipt of the request concerning an alleged violation of paragraph 10, and provided that the relevant competent competition authority or court has found an antitrust violation, the Party which requested the consultation shall have the right to suspend the exercise of the rights specified in this Agreement by the concerned companies of the other Party by refusing, revoking or suspending the operating authorisation/permit, or to impose such conditions as it may deem necessary on the exercise of such rights, or impose duties or take other actions. Any action taken pursuant to this paragraph shall be appropriate, proportionate and restricted with regard to scope and duration to what is strictly necessary.thirty

Appears in 2 contracts

Samples: Common Aviation Agreement, Common Aviation Area Agreement

Fair Competition. 1. The Parties acknowledge that it is their joint objective to have a fair and competitive environment and fair and equal opportunity for the companies involved in air transport services of both Parties to compete in operating the agreed services on the specified routes. Therefore, the Parties shall take all appropriate measures to ensure the full enforcement of this objective. 2. The Parties assert that free, fair and undistorted competition is important to promote the objectives of this Agreement and note that the existence of comprehensive competition laws and of an independent competition authority as well as the sound and effective enforcement of their respective competition laws are important for the efficient provision of air transport services. The competition laws of each Party addressing the issues covered by this Article, as amended from time to time, shall apply to the operation of the air carriers within the jurisdiction of the respective Party. The Parties share the objectives of compatibility and convergence of competition law and of its effective application. They will cooperate as appropriate and where relevant on the effective application of competition law, including by allowing the disclosure, in accordance with their respective rules and jurisprudence, by their respective companies or other nationals of information pertinent to a competition law action by the competition authorities of the other Partyeach other. 3. Nothing in this Agreement shall affect, limit or jeopardise in any way the authority and powers of the relevant competition authorities and courts of either Party (and of the European Commission), and all matters relating to the enforcement of competition law shall continue to fall under the exclusive competence of those authorities and courts. Therefore, any action taken pursuant to this Article by a Party shall be without prejudice to any possible actions taken by those authorities and courts. 4. Any action taken pursuant to this Article shall fall under the exclusive responsibility of the Parties and shall be exclusively directed towards the other Party or and/or to companies providing air transport services to/from the Parties. Such action shall not be subject to the dispute settlement procedure foreseen in Article 2424 of this Agreement. 5. Each Party shall eliminate all forms of discrimination or unfair practices which would adversely affect the fair and equal opportunity of the companies involved in air transport services of the other Party to compete in providing air transport services. 6. Neither Party shall provide or permit public subsidies or support to any company if these subsidies or support would significantly and adversely affect the fair and equal opportunity of the companies of the other Party to compete in providing air transport services. Such public subsidies or support may include, but are not limited to: cross-subsidisation; the setting-off of operational losses; the provision of capital; grants; guarantees; loans or insurance on privileged terms; protection from bankruptcy; foregoing the recovery of amounts due; foregoing a normal return on public funds invested; tax relief or tax exemptions; compensation for financial burdens imposed by public authorities; and access on a discriminatory or non-commercial basis to air navigation or airport facilities and services, fuel, ground handling, security, computerised computer reservation systems, slot allocation or other related facilities and services necessary for the operation of air services. 7. If a Party provides public subsidies or support to a company, it shall ensure the transparency of such measure through any appropriate means, which may include requiring that the company identifies the subsidy or support clearly and separately in its accounts. 8. Each Party shall, at the request of the other Party, provide to the other Party within a reasonable time financial reports relating to the entities under the jurisdiction of the first Party, and any other such information that may be reasonably requested by the other Party to ensure that the provisions of this Article are being complied with. This may include detailed information relating to subsidies or support. Such The submission of such information may be subject to its confidential treatment by the Party requesting access to the information. 9. Without prejudice to any action undertaken by the relevant competition authority or and/or court for the enforcement of the rules referred to in paragraphs 5 and 6:, (a) if one Party finds that a company is being subject to discrimination or unfair practices in the sense of paragraph paragraphs 5 or 6 above and that this can be substantiated, it may submit observations in writing to the other Party. After informing the other Party, a Party may also approach responsible government entities in the territory of the other Party, including entities at the central, regional, provincial or local level to discuss matters relating to this Article. Moreover, a Party may request consultations on this matter with the other Party with a view to solving the problem. Such consultations shall start within 30 days a period of the receipt of the request. In the meantime, the Parties shall exchange sufficient information to enable a full examination of the concern expressed by one of the Parties; (b) if the Parties fail to reach a resolution of the matter through consultations within 30 days of the start of consultations or consultations do not start within 30 days of the receipt of the request concerning an alleged violation of paragraph 5 or 6, the Party which requested the consultation shall have the right to suspend the exercise of the rights specified in this Agreement by the concerned companies of the other Party by refusing, revoking or suspending the operating authorisation/permit, or to impose such conditions as it may deem necessary on the exercise of such rights, or impose duties or take other actions. Any action taken pursuant to this paragraph shall be appropriate, proportionate and restricted with regard to scope and duration to what is strictly necessary. 10. Each Party shall effectively apply antitrust laws in accordance with paragraph 2, and shall prohibit companies: (a) in conjunction with any other company to enter into agreements, take decisions or engage in concerted practices which may affect air transport services to/from that Party and which have as their object or effect the prevention, restriction or distortion of competition. This prohibition may be declared inapplicable where such agreements, decisions or practices contribute to improving the production or distribution of services or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, and do not: (i) impose on the companies concerned restrictions which are not indispensable to the attainment of these objectives; (ii) afford such companies the possibility of eliminating competition in respect of a substantial part of the services in question, and (b) to abuse a dominant position in a way which may affect air transport services to/from that Party. 11. Each Party shall entrust the enforcement of the antitrust rules referred to in paragraph 10 exclusively to its relevant and independent competition authority or court. 12. Without prejudice to any action undertaken by the relevant competition authority or court for the enforcement of the rules referred to in paragraph 10, if one Party finds that a company suffers from an alleged violation of paragraph 10 and that this can be substantiated, it may submit observations in writing to the other Party. After informing the other Party, a Party may also approach responsible government entities in the territory of the other Party, including entities at the central, regional, provincial or local level to discuss matters relating to this Article. Moreover, a Party may request consultations on this matter with the other Party with a view to solving the problem. Such consultations shall start within 30 days of the receipt of the request. In the meantime, the Parties shall exchange sufficient information to enable a full examination of the concern expressed by one of the Parties. 13. If the Parties fail to reach a resolution of the matter through consultations within 30 days of the start of consultations or consultations do not start within 30 days of the receipt of the request concerning an alleged violation of paragraph 10, and provided that the relevant competent competition authority or court has found an antitrust violation, the Party which requested the consultation shall have the right to suspend the exercise of the rights specified in this Agreement by the concerned companies of the other Party by refusing, revoking or suspending the operating authorisation/permit, or to impose such conditions as it may deem necessary on the exercise of such rights, or impose duties or take other actions. Any action taken pursuant to this paragraph shall be appropriate, proportionate and restricted with regard to scope and duration to what is strictly necessary.thirty

Appears in 1 contract

Samples: Common Aviation Area Agreement

Fair Competition. 1. The Parties acknowledge that it is their joint objective to have a fair and competitive environment and fair and equal opportunity for the companies involved in air transport services of both Parties to compete in operating the agreed services on the specified routes. Therefore, the Parties shall take all appropriate measures to ensure the full enforcement of this objective. 2. The Parties assert that free, fair and undistorted competition is important to promote the objectives of this Agreement and note that the existence of comprehensive competition laws and of an independent competition authority as well as the sound and effective enforcement of their respective competition laws are important for the efficient provision of air transport services. The competition laws of each Party addressing the issues covered by this Article, as amended from time to time, shall apply to the operation of the air carriers within the jurisdiction of the respective Party. The Parties share the objectives of compatibility and convergence of competition law and of its effective application. They will cooperate as appropriate and where relevant on the effective application of competition law, including by allowing the disclosure, in accordance with their respective rules and jurisprudence, by their respective companies or other nationals of information pertinent to a competition law action by the competition authorities of the other Partyeach other. 3. Nothing in this Agreement shall affect, limit or jeopardise in any way the authority and powers of the relevant competition authorities and courts of either Party (and of the European Commission), and all matters relating to the enforcement of competition law shall continue to fall under the exclusive competence of those authorities and courts. Therefore, any action taken pursuant to this Article by a Party shall be without prejudice to any possible actions taken by those authorities and courts. 4. Any action taken pursuant to this Article shall fall under the exclusive responsibility of the Parties and shall be exclusively directed towards the other Party or and/or to companies providing air transport services to/from the Parties. Such action shall not be subject to the dispute settlement procedure foreseen in Article 2424 of this Agreement. 5. Each Party shall eliminate all forms of discrimination or unfair practices which would adversely affect the fair and equal opportunity of the companies involved in air transport services of the other Party to compete in providing air transport services. 6. Neither Party shall provide or permit public subsidies or support to any company if these subsidies or support would significantly and adversely affect the fair and equal opportunity of the companies of the other Party to compete in providing air transport services. Such public subsidies or support may include, but are not limited to: cross-subsidisation; the setting-off of operational losses; the provision of capital; grants; guarantees; loans or insurance on privileged terms; protection from bankruptcy; foregoing the recovery of amounts due; foregoing a normal return on public funds invested; tax relief or tax exemptions; compensation for financial burdens imposed by public authorities; and access on a discriminatory or non-commercial basis to air navigation or airport facilities and services, fuel, ground handling, security, computerised computer reservation systems, slot allocation or other related facilities and services necessary for the operation of air services. 7. If a Party provides public subsidies or support to a company, it shall ensure the transparency of such measure through any appropriate means, which may include requiring that the company identifies the subsidy or support clearly and separately in its accounts. 8. Each Party shall, at the request of the other Party, provide to the other Party within a reasonable time financial reports relating to the entities under the jurisdiction of the first Party, and any other such information that may be reasonably requested by the other Party to ensure that the provisions of this Article are being complied with. This may include detailed information relating to subsidies or support. Such The submission of such information may be subject to its confidential treatment by the Party requesting access to the information. 9. Without prejudice to any action undertaken by the relevant competition authority or and/or court for the enforcement of the rules referred to in paragraphs 5 and 6:, (a) if one Party finds that a company is being subject to discrimination or unfair practices in the sense of paragraph paragraphs 5 or 6 above and that this can be substantiated, it may submit observations in writing to the other Party. After informing the other Party, a Party may also approach responsible government entities in the territory of the other Party, including entities at the central, regional, provincial or local level to discuss matters relating to this Article. Moreover, a Party may request consultations on this matter with the other Party with a view to solving the problem. Such consultations shall start within 30 a period of thirty (30) days of the receipt of the request. In the meantime, the Parties shall exchange sufficient information to enable a full examination of the concern expressed by one of the Parties;. (b) if the Parties fail to reach a resolution of the matter through consultations within 30 thirty (30) days of from the start of consultations or consultations do not start within 30 a period of thirty (30) days of the receipt of the request concerning an alleged violation of paragraph paragraphs 5 or 66 above, the Party which requested the consultation shall have the right to suspend the exercise of the rights specified in this Agreement by the concerned companies of the other Party by refusing, revoking or suspending the operating authorisation/permit, or to impose such conditions as it may deem necessary on the exercise of such rights, or impose duties or take other actions. Any action taken pursuant to this paragraph shall be appropriate, proportionate and restricted with regard to scope and duration to what is strictly necessary. 10. Each Party shall effectively apply antitrust laws in accordance with paragraph 2, and shall prohibit companies: (a) in conjunction with any other company to enter into agreements, take decisions or engage in concerted practices which may affect air transport services to/from that Party and which have as their object or effect the prevention, restriction or distortion of competition. This prohibition may be declared inapplicable where such agreements, decisions or practices contribute to improving the production or distribution of services or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, and do not: : (ia) impose on the companies concerned restrictions which are not indispensable to the attainment of these objectives; (iib) afford such companies the possibility of eliminating competition in respect of a substantial part of the services in question, and (b) to abuse a dominant position in a way which may affect air transport services to/from that Party. 11. Each Party shall entrust the enforcement of the antitrust rules referred to in paragraph 10 above exclusively to its relevant and independent competition authority or and/or court. 12. Without prejudice to any action undertaken by the relevant competition authority or and/or court for the enforcement of the rules referred to in paragraph 10, if one Party finds that a company suffers from an alleged violation of paragraph 10 above and that this can be substantiated, it may submit observations in writing to the other Party. After informing the other Party, a Party may also approach responsible government entities in the territory of the other Party, including entities at the central, regional, provincial or local level to discuss matters relating to this Article. Moreover, a Party may request consultations on this matter with the other Party with a view to solving the problem. Such consultations shall start within 30 a period of thirty (30) days of the receipt of the request. In the meantime, the Parties shall exchange sufficient information to enable a full examination of the concern expressed by one of the Parties. 13. If the Parties fail to reach a resolution of the matter through consultations within 30 thirty (30) days of from the start of consultations or consultations do not start within 30 a period of thirty (30) days of the receipt of the request concerning an alleged violation of paragraph 10, and provided that the relevant competent competition authority or court has found an antitrust violation, the Party which requested the consultation shall have the right to suspend the exercise of the rights specified in this Agreement by the concerned companies of the other Party by refusing, revoking or suspending the operating authorisation/permit, or to impose such conditions as it may deem necessary on the exercise of such rights, or impose duties or take other actions. Any action taken pursuant to this paragraph shall be appropriate, proportionate and restricted with regard to scope and duration to what is strictly necessary.

Appears in 1 contract

Samples: Common Aviation Area Agreement

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Fair Competition. 1. The Parties acknowledge that it is their joint objective to have a fair and competitive environment and fair and equal opportunity for the companies involved in air transport services of both Parties to compete in operating the agreed services on the specified routes. Therefore, the Parties shall take all appropriate measures to ensure the full enforcement of this objective. 2. The Parties assert that free, fair and undistorted competition is important to promote the objectives of this Agreement agreement and note that the existence of comprehensive competition laws and of an independent competition authority as well as the sound and effective enforcement of their respective competition laws are important for the efficient provision of air transport services. The competition laws of each Party addressing the issues covered by this Articlearticle, as amended from time to time, shall apply to the operation of the air carriers within the jurisdiction of the respective Party. The Parties share the objectives of compatibility and convergence of competition law and of its effective application. They will cooperate as appropriate and where relevant on the effective application of competition law, including by allowing the disclosure, in accordance with their respective rules and jurisprudence, by their respective companies or other nationals of information pertinent to a competition law action by the competition authorities of the other Party. 3. Nothing in this Agreement agreement shall affect, limit or jeopardise in any way the authority and powers of the relevant competition authorities and courts of either Party (and of the European Commission), and all matters relating to the enforcement of competition law shall continue to fall under the exclusive competence of those authorities and courts. Therefore, any action taken pursuant to this Article article by a Party shall be without prejudice to any possible actions taken by those authorities and courts. 4. Any any action taken pursuant to this Article article shall fall under the exclusive responsibility of the Parties and shall be exclusively directed towards the other Party or to companies providing air transport services to/from the Parties. Such action shall not be subject to the dispute settlement procedure foreseen in Article article 24. 5. Each Party shall eliminate all forms of discrimination or unfair practices which would adversely affect the fair and equal opportunity of the companies involved in air transport services of the other Party to compete in providing air transport services. 6. Neither Party shall provide or permit public subsidies or support to any company if these subsidies or support would significantly and adversely affect the fair and equal opportunity of the companies of the other Party to compete in providing air transport services. Such public subsidies or support may include, but are not limited to: cross-subsidisation; the setting-setting- off of operational losses; the provision of capital; grants; guarantees; loans or insurance on privileged terms; protection from bankruptcy; foregoing the recovery of amounts due; foregoing a normal return on public funds invested; tax relief or tax exemptions; compensation for financial burdens imposed by public authorities; and access on a discriminatory or non-non- commercial basis to air navigation or airport facilities and services, fuel, ground handling, security, computerised reservation systems, slot allocation or other related facilities and services necessary for the operation of air services. 7. If a Party provides public subsidies or support to a company, it shall ensure the transparency of such measure through any appropriate means, which may include requiring that the company identifies the subsidy or support clearly and separately in its accounts. 8. Each Party shall, at the request of the other Party, provide to the other Party within a reasonable time financial reports relating to the entities under the jurisdiction of the first Party, and any other such information that may be reasonably requested by the other Party to ensure that the provisions of this Article article are being complied with. This may include detailed information relating to subsidies or support. Such information may be subject to its confidential treatment by the Party requesting access to the information. 9. Without prejudice to any action undertaken by the relevant competition authority or court for the enforcement of the rules referred to in paragraphs 5 and 6: (a) if one Party finds that a company is being subject to discrimination or unfair practices in the sense of paragraph 5 or 6 and that this can be substantiated, it may submit observations in writing to the other Party. After after informing the other Party, a Party may also approach responsible government entities in the territory of the other Party, including entities at the central, regional, provincial or local level to discuss matters relating to this Articlearticle. Moreover, a Party may request consultations on this matter with the other Party with a view to solving the problem. Such consultations shall start within 30 days of the receipt of the request. In the meantime, the Parties shall exchange sufficient information to enable a full examination of the concern expressed by one of the Parties; (b) if the Parties fail to reach a resolution of the matter through consultations within 30 days of the start of consultations or consultations do not start within 30 days of the receipt of the request concerning an alleged violation of paragraph 5 or 6, the Party which requested the consultation shall have the right to suspend the exercise of the rights specified in this Agreement agreement by the concerned companies of the other Party by refusing, revoking or suspending the operating authorisation/permit, or to impose such conditions as it may deem necessary on the exercise of such rights, or impose duties or take other actions. Any any action taken pursuant to this paragraph shall be appropriate, proportionate and restricted with regard to scope and duration to what is strictly necessary. 10. Each Party shall effectively apply antitrust laws in accordance with paragraph 2, and shall prohibit companies: (a) in conjunction with any other company to enter into agreements, take decisions or engage in concerted practices which may affect air transport services to/from that Party and which have as their object or effect the prevention, restriction or distortion of competition. This prohibition may be declared inapplicable where such agreements, decisions or practices contribute to improving the production or distribution of services or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, and do not: : (i) impose on the companies concerned restrictions which are not indispensable to the attainment of these objectives; (ii) afford such companies the possibility of eliminating competition in respect of a substantial part of the services in question, ; and (b) to abuse a dominant position in a way which may affect air transport services to/from that Party. 11. Each Party shall entrust the enforcement of the antitrust rules referred to in paragraph 10 exclusively to its relevant and independent competition authority or court. 12. Without prejudice to any action undertaken by the relevant competition authority or court for the enforcement of the rules referred to in paragraph 10, if one Party finds that a company suffers from an alleged violation of paragraph 10 and that this can be substantiated, it may submit observations in writing to the other Party. After after informing the other Party, a Party may also approach responsible government entities in the territory of the other Party, including entities at the central, regional, provincial or local level to discuss matters relating to this Articlearticle. Moreover, a Party may request consultations on this matter with the other Party with a view to solving the problem. Such consultations shall start within 30 days of the receipt of the request. In the meantime, the Parties shall exchange sufficient information to enable a full examination of the concern expressed by one of the Parties. 13. If the Parties fail to reach a resolution of the matter through consultations within 30 days of the start of consultations or consultations do not start within 30 days of the receipt of the request concerning an alleged violation of paragraph 10, and provided that the relevant competent competition authority or court has found an antitrust violation, the Party which requested the consultation shall have the right to suspend the exercise of the rights specified in this Agreement agreement by the concerned companies of the other Party by refusing, revoking or suspending the operating authorisation/permit, or to impose such conditions as it may deem necessary on the exercise of such rights, or impose duties or take other actions. Any any action taken pursuant to this paragraph shall be appropriate, proportionate and restricted with regard to scope and duration to what is strictly necessary.

Appears in 1 contract

Samples: Common Aviation Area Agreement

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