negative clearance


negative clearance
the procedure in the competition policy of the European Communities whereby the Commission of the European Union issues a decision at the request of an undertaking indicating that it does not consider that a given proposal is prohibited by Article 81 or Article 82. The Channel Tunnel project was so referred. The procedure is less common than it once was because of the increase in block exemptions.

Collins dictionary of law. . 2001.


negative clearance
For UK competition law purposes, this is formal or informal confirmation (depending on the form in which such confirmation is sought) by the Office of Fair Trading that an agreement is not caught by the Chapter I prohibition in the Competition Act 1998 or (as the case may be) that a potential abuse of a dominant position is not caught by the Chapter II prohibition in the Act.
For EC competition law purposes, this is confirmation by the European Commission that the prohibition in Article 81(1) (and/or Article 82) of the EC Treaty does not apply to an agreement that has been notified to it. (Note that the system of notification was abolished when EC Regulation 1/2003 came into force on 1 May 2004 (see individual exemption).)

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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