The Use of Internal Markets in Corporate Groups and Legitimising the Group Interest in Intra-group Trading

Abstract The present article analyses internal markets in corporate groups and whether the nature of and motives behind intra-group trading warrant legalisation of group interests in intra-group trading. Firstly, it is examined why both corporate groups and internal markets in groups are formed in the first place. The article then takes a closer look at the terms used for intra-group trading, including both the advantages and challenges of using arm’s length terms as a standard. The last part of the article revolves around the potential regulation of intra-group trading. This includes both an examination of the discussions on legitimising the group interest at EU level so far, and a discussion of the interests worth legalising in intra-group trading and an outline for potential regulation. Lastly, the article examines some of the challenges and regulatory focal points that legislators may encounter if they pursue such regulation.