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United Kingdom

Restrictions 'by object' under Article 101(1) TFEU: post-Cartes Bancaires test, context assessment, leading cases (Budapest Bank, Paroxetine, Lundbeck, Super Bock) and typical versus non-object categories

Practice notes
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As a rule, arrangements whose purpose or consequence is to restrict, distort or impede competition are barred by Article 101(1) TFEU. Agreements with an anti-competitive object are treated as particularly high risk and are presumed to harm markets; owing to their gravity, there is no requirement to demonstrate an actual adverse impact on competition. The concept of an agreement’s object has long been one of the most contested issues in competition law, supported by extensive case law reaching back to 1966. Historically, the test for identifying an anti-competitive object was read broadly, capturing many agreements even where it appeared the parties had no such intention. This expansive approach reflected the pre-2004 regime, under which only the European Commission (the Commission) could apply the exemption in Article 101(3) TFEU. Consequently, Article 101(1) TFEU and the object test existed primarily to indicate when the Commission had jurisdiction. Judicial decisions evolved to clarify that jurisdictional point and to provide a simple test to apply...

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Web page updated on 22/05/2026

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