Article 101(1) of the Treaty on the Functioning of the European Union (TFEU) prohibits agreements, decisions by associations of undertakings and concerted practices that have as their object or effect the prevention, restriction or distortion of competition. Under Article 101(2) TFEU all such anti-competitive restrictions are void. Under Article 101(3) TFEU, prima facie anti-competitive restrictions may be exempted from the prohibition, where it can be shown that, on balance, the consumer benefits and efficiencies flowing from the restriction outweigh the anti-competitive effects. In particular, Article 101(3) will apply where the agreement:
"contributes to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, and which does not:
(a) impose on the undertakings concerned restrictions which are not indispensable to the attainment of those objectives;
(b) afford such undertakings the possibility of eliminating competition in respect of a substantial part of the products in question