Regulation 1/2003 (the Modernisation Regulation) significantly alters the way in which Article 81 and Article 82 of the EC Treaty are implemented and enforced. The Modernisation Regulation removes the system of advance approval of agreements. Agreements that satisfy the Article 81(3) conditions for exemption are valid from the outset, without requiring prior notification to, and approval of, the European Commission. The Regulation also introduces parallel competence to apply Articles 81 and 82 in their entirety for the Commission, national competition authorities and national courts. The Commission will focus its investigation and enforcement powers on only the most serious types of cross-border cases.

Ten new countries join the European Union. Although the Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovenia and Slovakia have implemented EC competition rules, there is a gap between the existence of the rules and awareness of them. There is also a lack of strict enforcement of such rules. The EC regime for state aid control is also directly applicable in the new member states.

The new revised EC Merger Regulation 139/2004 also came into force on 1 May. Under the new Regulation, concentrations will be found to be incompatible with the common market where they would significantly impede effective competition in the common market, or in a substantial part of it, in particular as a result of the creation or strengthening of a dominant position.

Procedures for the referral of cases between the Commission and member state competition authorities have been revised. Other procedural changes:

The new technology transfer block exemption regulation, replacing Regulation 240/96, also entered into force. It reflects the Commission’s new economic and effects-focused approach towards block exemptions.