Analysis of Competition on the European Natural Gas Market
Analysis of Competition on the European Natural Gas Market

Summary/Abstract: This article addresses aspects of competition in the European gas market and more precisely analyzes the abuse of Gazprom's dominant position by preventing the free flow of gas among the Member States of the European Union and by its unfair prices. In line with the European principle of freedom of movement for goods, services, persons and capital, the European Commission adopted three directives, approved in 1998, 2003 and 2009, by introducing competition on a market which had been closed down until then. From a macroeconomic perspective, there has been significant theoretical and empirical evidence suggesting that the liberalization of the European gas market has positive effects on the energy industry in terms of lower prices and security of supply. But the competition law in the European energy sector is not always properly applied and consumers are discouraged in terms of implementing the legislative and regulatory framework. In accordance with art. 102 of the Treaty on the Functioning of the European Union (TFEU), EU countries importing natural gas must benefit from transparent, fair pricing contracts. However, in some cases, abusive practices have been used for gas importers in central and Eastern Europe.

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