Glossary of competition terms

This Glossary is based on definitions from DG COMP’s Glossary of terms used in EU competition policy (© European Union, 2002) and the OECD’s Glossary of industrial organisation economics and competition law (© OECD, 1993). Each term is enriched with references of EU and national case laws from the e-Competitions Bulletin and Concurrences Review.


Arbitration is a dispute resolution mechanism in which parties agree to have their dispute resolved by a private third-party decision-maker, rather than through litigation in public courts. The parties agree in advance that the decision-maker’s ruling will be binding on them, rather than merely advisory. Although arbitration is often described as a form of alternative dispute resolution, and it does indeed provide an alternative to court litigation, arbitration’s current success has resulted substantially from the support it has received from governments and courts. Consequently, while one of arbitration’s primary benefits is the freedom that it gives to parties to resolve their dispute in a manner different than that adopted in national courts, it must be remembered that arbitration is nonetheless heavily dependent on both national legal systems and national courts. © European Parliament