E.U. Business Environmental Audit: RYANAIR PL

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without any restrictions. A market survey showed that if the merger between Ryanair and Aer Lingus was approved, there was a high probability that no new carrier would dare enter the Irish market and this would be contrary to the policy of free operation. This would have likely resulted in high air fares because of monopoly which is also an abuse of a competitive advantage. This resultant predatory pricing would be contrary to article 82 (Gerlach, 2006).

The European Union holds the power to control and influence state aid which is given to a business if it encourages discrimination and affects competition. The only exception to this law is if the aid has been sanctioned by the EU itself or if it is considered compatible with the internal market. State aid may take the form of tax advantages, subsidies, credit guarantees, favourable loan terms, sale or lease of goods and real estate below market prices. The union can therefore order the amount to be paid back by the recipient ...

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it got the deal accordingly. There were also no restrictions that prohibited any airline from using Charleroi and negotiating for discounts (Zito,2003).

One key EU policy is the competition policy which is responsible for safeguarding the market mechanism through discouraging anti-competitive behaviour and promoting market structures that are competitive. It achieves this feat through prohibition of anticompetitive partnerships and anticompetitive practices, and vetting mergers and acquisitions. An agreement that distorts, inhibits or prevents competition in any part of the common market must not be sealed between two or more economic undertakings. The EU can however provide exemptions ...

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