Common use of Rules of Competition Clause in Contracts

Rules of Competition. 1. The following practices of enterprises are incompatible with the proper functioning of this Agreement in so far as they may affect trade between the Parties: (a) agreements between enterprises, decisions by associations of enterprises and concerted practices between enterprises, which have as their object or effect the prevention, restriction or distortion of competition; (b) abuse by one or more enterprises of a dominant position in the territory of a Party as a whole or in a substantial part thereof. 2. Nothing in this Chapter shall be construed so as to prevent a Party from establishing or maintaining state enterprises, enterprises with special and exclusive rights and designated monopolies. Paragraph 1 shall also apply to the activities of public enterprises, and enterprises to which the Parties grant special or exclusive rights, in so far as the application of these provisions does not obstruct the performance, in law or in fact, of the particular public tasks assigned to them. 3. Paragraphs 1 and 2 shall not be construed so as to create any direct obligations for enterprises. 4. This Chapter shall be without prejudice to the autonomy of each Party to establish, develop and implement its own public and economic policies and competition laws and regulations.