Court of Justice of the European Union

Agenda Item: BAI and Commission v. Bayer

Under-Secretaries-General: Rana Elif Taze - Mert Halil Bölükbaşı

Trainee: Merve Arslan

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The Court of Justice of the European Union was established in 1952 and is headquartered in Luxembourg as the judicial authority of the European Union. The Court ensures that EU law is interpreted and applied uniformly across all member states and that the institutions of the Union do not exceed their powers. The CJEU adjudicates on the legality of the acts of the EU institutions and ensures that member states comply with their obligations under the Treaties. Endorsing the supremacy of EU law is a fundamental requirement for all member states, and the Court's rulings are obligatory for the national courts. Applications to the CJEU may be submitted by member states, EU institutions, or by individuals and legal entities. In addition to rendering verdicts on specific cases, the CJEU provides preliminary rulings on the interpretation of Union law. The Court utilizes case law alongside the EU Treaties, making it a significant force in upholding the single market, the rule of law, and economic integration across Europe.

In the 22nd Edition of EUROsimA, the CJEU will hear the case of 'BAI and the Commission v. Bayer'. The dispute centers on Bayer’s strategy to limit the parallel trade of its drug, Adalat, from Spain and France to the United Kingdom to maintain higher price levels. The Commission claimed that Bayer entered into a tacit agreement with wholesalers to restrict exports, violating EU competition rules. However, the core of the legal battle focuses on whether a manufacturer's unilateral decision to limit supply can legally constitute an "agreement" between parties. In the court, it is to be expected that whether a "concurrence of wills" is necessary to prove an anti-competitive agreement will be debated. Consequences of market partitioning, price discrimination and the limits of contractual freedom are vital topics to discuss and have a judgment on during the court.