Hazards of competition restraining agreements between banks: the practice of European Union member states

Abstract

The competition restraining agreements between any entities engaged in economic activities are prohibited by Treaty on the Functioning of the European Union Article 101(1) and Law on Competition of the Republic of Lithuania Article 5. Considering banking sector’s strategic importance and possible consequences of deviating from the rules of fair competition it remains under a magnifying glass. Even applying exemptions for prohibition for banks to constitute competition restraining agreements has its own particularities. In February 2013, the Competition Council of the Republic of Lithuania terminated an investigation of several banks’ compliance with the Competition Law of the Republic of Lithuania Article 5 due to lack of evidence. However, the European Union Member States have other practice worthy of individual analysis as well.