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Exclusive EU competence meaning

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What does Exclusive EU competence mean?
In EU law practice, exclusive EU competence describes policy areas where only the European Union may legislate or adopt binding measures; member States may act only if empowered by the Union or to implement EU acts. The concept is set out in Article 2(1) and Article 3 TFEU, which list the fields concerned: the customs union; establishing competition rules necessary for the functioning of the internal market; monetary policy for euro-area Member States; conservation of marine biological resources under the common fisheries policy; common commercial policy; and, in defined circumstances, the conclusion of international agreements. Its legal effect is pre-emption: national measures in these fields are displaced or invalid if inconsistent with EU law. The EU institutions (primarily the Council and European Parliament, on Commission proposal) set the rules; Member States focus on administration and enforcement. Jurisdictional note: in Ireland, the concept applies fully. In England & Wales, Scotland and Northern Ireland, it ceased to apply on EU exit, but remains relevant for interpreting retained EU law, EU-facing transactions, and under the Windsor Framework where specified EU goods and customs rules apply in Northern Ireland.
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NEWS
Netherlands: Amsterdam court holds ECT award against Spain is EU state aid; Commission competence cannot be bypassed by enforcement or assignment (Spain v AES Solar & Ampere Equity Fund)

What are the practical implications of this case? The practical implications of this case are threefold. First, the Dutch courts consider EU state aid rules to extend to ECT arbitral awards even where the tribunal is seated beyond the EU. Here, Switzerland was selected as the seat. As all parties were European and proceeded on the basis that EU state aid rules bound them, the Amsterdam District Court found those rules also govern an ECT claim in arbitration outside the EU... Second, the tribunal’s conclusion that damages for an ECT breach align with the EU internal market was regarded as irrelevant by the District Court of Amsterdam, since the exclusive power to rule on state aid compatibility lies with the European Commission (and ultimately the Court of Justice)...

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NEWS
EU law weekly update: competition and state aid, AI, financial services, environment, life sciences, TMT and trade—16 January 2025

In this issue: Commercial Competition and state aid Corporate Free movement, immigration and employment Financial services Energy Environment Insurance and reinsurance IP Life sciences Regulatory TMT International trade Daily and weekly news alerts New and updated content Trackers Commercial EU Digital Fairness Act set for early 2026, with consumer protection in focus MLex reports that, in 2026, the European Commission plans to propose the EU Digital Fairness Act (DFA), an initiative aimed at reinforcing consumer protections in the online environment. Informed by the latest Digital Fitness Check, the DFA is slated to target dark patterns, addictive design, influencer marketing, unfair practices and, potentially, online subscriptions. After wide-ranging evidence-gathering throughout 2025, MLex understands the remit could also broaden to cover dynamic pricing, with an initial draft not expected before early 2026. See News Analysis: EU Digital Fairness Act set for early 2026, with consumer protection in focus...

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View the related Practice Notes about Exclusive EU competence

PRACTICE NOTES
Togo merger control: no national regime; WAEMU-exclusive, threshold-free, voluntary and non-suspensory review; full-function JVs only; sector regulators; ECOWAS authority operational

1. Have there been any recent developments regarding the Togolese merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in Togo? Competition in Togo is governed by Law No 99-011 of 28 December 1999 on the organisation of competition in Togo (the Competition Law), which omits any merger control rules. The Directorate of Domestic Trade and Competition (DCIC) serves as the country’s central administrative competition authority under the Minister of Commerce. As a member of the West African Economic and Monetary Union (Union Economique et Monétaire Ouest Africaine) (WAEMU), Togo is bound by WAEMU competition rules as set out in Directive 02/2002/CM/UEMOA (the WAEMU Regulations). WAEMU holds sole and exclusive competence for merger control throughout its member states. National bodies may lawfully oversee competition within the domestic market, flag anticompetitive behaviour, and refer any filing requesting negative clearance or an individual exception to the WAEMU Commission. Togo also belongs to the Economic Community of West African States (ECOWAS)...

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PRACTICE NOTES
EU Law Glossary: Legal Acts, Institutions, Competences and Key Policy Initiatives

The EU glossary brings together and clarifies terms regularly used in EU law. Blue economy The European Union’s blue economy covers all activities and sectors linked to oceans, seas and coastlines, whether operating directly in the marine environment (eg shipping, seafood, energy production) or on land (eg ports, shipyards, coastal infrastructures). Circular Economy Action Plan In March 2020, under the European Green Deal, the European Commission adopted a new Circular Economy Action Plan (CEAP). The CEAP seeks to: make sustainable products the norm across the EU prioritise sectors likely to be highly affected by circularity, such as construction and buildings, batteries and vehicles, water, packaging, plastics, batteries, electronics empower consumers and public procurers cut waste For further details on the CEAP, see News Analysis: New circular economy action plan published, Sustainable products and supply chains (EU Law)—overview and Practice Note: EU Environment—horizon scanner, which covers key new and upcoming EU legislation and consultations relating to waste regulation,...

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PRACTICE NOTES
EU legal system: principles (primacy, conferral, subsidiarity, proportionality, sincere co-operation), competences, sources of law, enforcement by the Commission/CJEU, and individual remedies (direct and indirect effect, state liability)

Introduction to the EU legal system The EU legal order is sui generis—unmatched by any other legal system, even if it incorporates elements from many. To grasp its operation, resist folding it into a national template (or measuring it against one) and watch how it behaves from multiple perspectives. From the outset, the EU (then the EEC) was meant to evolve into more than a mere economic community, hence the founding Member States consented to cede slices of sovereignty to newly created 'supranational' institutions. Supranational, as the term suggests, describes authority set above a national framework. The label marks the contrast with intergovernmental arrangements, where choices are made by consensus and remain tied to the interests of national governments. Once inside the EU, Member States can no longer enact, on their own, laws within fields allocated by the EU Treaties, ie the Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU), and by their predecessors, to the EU institutions, that competence being...

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