accordance with the applicable domestic law in the Territory of the Party from which the

transfer is made.

2. For the purpose of this Article, the applicable domestic law of the Portuguese Republic

includes all measures taken by the European Union.

ARTICLE 13

FAIR COMPETITION

1. Each Party shall allow fair and equal opportunity for the Designated Airlines of both

Parties to operate the Agreed Services on the Specified Routes.

2. Each Party shall allow each Designated Airline to determine the frequency and capacity

of the International Air Service it offers based upon commercial considerations in the

marketplace. Consistent with this right, neither Party shall unilaterally limit the volume of

traffic, frequency or regularity of service, or the aircraft type or types operated by the

Airlines designated by the other Party, except as may be required for customs, technical,

operational or environmental reasons under uniform conditions consistent with Article 15 of

the Convention.

3. Neither Party shall allow its Designated Airline or Airlines, either in conjunction with any

other Airline or Airlines or separately, to abuse market power in a way which has or is

likely or intended to have the effect of severely weakening a competitor or excluding a

competitor from a route.

4. Neither Party shall provide or permit state subsidy or support for or to its Designated

Airline or Airlines in such way that would adversely affect the fair and equal opportunity of

the Airlines of the other Party to compete in providing International Air Service.

II SÉRIE-A — NÚMERO 12__________________________________________________________________________________________________________

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