Candidate List Duty Triggers in Component Level Imports
Candidate List duties trigger when any discrete component article exceeds 0.1 percent SVHC by weight, regardless of aggregate assembly mass.
ECJ C-106-14
Meaning
Judicial interpretation of EU competition law defines the legal boundary for non-compete clauses within share purchase agreements. The court judgment ecj c-106-14 clarifies whether such restraints are ancillary to a transaction or independent agreements subject to full anti-trust scrutiny. Strict temporal and geographic limits ensure that restrictions remain proportionate to the value of the transferred commercial goodwill.
Ancillary Requirement
Polymer suppliers often include similar restrictive covenants during the sale of moulding facilities or specialized technology platforms. Because ecj c-106-14 mandates that restraints must be objectively necessary for a merger to succeed, firms must justify the specific duration and scope of non-compete clauses against the actual commercial life of the tooling and patent portfolio. Overly broad clauses without a defined expiry period or restricted product range frequently fail this objective necessity test under broader market competition principles.
Economic Consequence
Legal uncertainty regarding the validity of these clauses influences the valuation of production assets during mergers. When ecj c-106-14 is applied to a transaction, the buyer gains assurance that the seller cannot immediately undercut the price of the acquired capacity by launching a rival moulding operation in the same region. This mechanism stabilizes the investment climate for technical equipment by preventing the premature loss of protected market share.
Moulding Application
Regulatory oversight of these clauses prevents the artificial creation of monopoly positions within the plastic resin supply chain. Parties must align contractual restraints with the actual turnover of the production assets to maintain compliance with competition standards. A non-compete agreement that exceeds the useful life of the injection machinery or the associated customer database lacks legal foundation under the principles established by the court.