Back to the Basics: Concepts of Undertaking and Economic Activity in the SELEX Judgment

Abstract

The ECJ's ruling in SELEX case (C-113/07 P) has raised important issues regarding application of the EC competition law to the activities of public bodies, in the present case of an international organization. The Court has addressed in detail the method of assessment that should be applied to particular activities of an entity in order to determine whether they are economic. The focal point of analysis according to the ECJ should be the nature of the underlying activities and their connection to the public powers of an entity. Thus, the connection between particular activities of a public body with its public aims and powers will continue to play a decisive role in a functional overall assessment whether such activities should be considered as economic, which justifies application of EC competition law.