EU LG 10 Art 101 TFEU Horizontal Agreements, Art 102 TFEU Abuse of a dominant position

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  • Created by: Emma13
  • Created on: 17-06-18 18:38
What does Art 101 TFEU prohit?
Art 101 TFEU prohibits agreements between businesses which contain anti-competitive terms e.g price fixing cartels
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What does Art 102 TFEU prohibit?
If a business is powerful enough to be deemed 'dominant' in it's market, Art 102 prevents it from abusing that position of power
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What can happen to businesses that breach these Articles?
Fines of up to 10% group global turnover, stopped by court injunction, Actions from 3rd P's that suffered loss from AC behaviour + individuals disqualified from being Comp director
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What does Competition law aim to do?
To secure for the consumer the widest possible rage of goods and services at the best possible prices
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How does EU law protect competition?
By restricting what terms in the agreement are enforceable.
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What are the other types of cartels?
A joint decision by the established retailers to discount prices in the short term in order to drive out new competition aka predatory pricing or agreement to share markets between competitors as well as price fixing.
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What is a vertical agreement?
Vertical agreements are between parties at different levels of the supply chain e.g manufacture and wholesaler
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What is a horizontal agreement?
Horizontal agreements are agreements between parties at the same level of the supply chain e.g manufacturer
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What does Art 101 TFEU say?
Agreements, decisions, concerted practices between undertakings object or effect a prevention, restriction or distortion on competition which may affect trade between MS will be void
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What does Art 101(2) say?
Agreements caught by Art 101(1) are void
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What is the worst form of anti-competitive behaviour?
Horizontal price fixing cartels are and competition authorities across the globe strive to eliminate them
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What are the consequences for consumers and businesses subject to price fixing cartels?
Consumer - higher prices, Businesses - investigation, fines, imprisonment
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What does Art 102 prohibit and authority?
Art 102 Prohibits the abuse of a dominant position which may affect trade between MS. Microsoft case
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What is the definition of dominance?
Dominance is the ability of a business to behave independently of both it's customers and competitors - need abuse of dominant position.
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How do you assess dominance?
The market power of a business will determine whether or not it is able to behave independently of both it's customers and competitors. One factor indicating market power is market share.
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What is market share made up of?
The relevant product market and the relevant geographic market.
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How do you define the relevant product market and authority?
ECJ and the Commission - the relevant product market comprises all those products and/or services which are regarded as interchangeable or suitable by the consumer, by reason of their characteristics = demand substitution test. United Brands
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What did Continental Can establish?
Another approach of ECJ and Commission - can other producers easily and without much additional cost switch to producing product in Q? If so RPM will be wider
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What is the relevant geographic market?
ECJ and the Commission - the relevant geographic market is the area in which conditions of competition are sufficient homogeneous
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What did Hilti establish?
For RGM starting point is the whole of the EU then narrow down accordingly
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Is dominance always a problem?
Being dominant is not necessarily a problem, it is only if a business abuses its dominance that it will breach Art 102. See Art 102 list
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What happens if the market share exceeds 50% and authority?
AKZO - there is a presumption of dominance
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What is the commercial solvents test?
May affect trade between MS - Does conduct in Q bring about an alteration in the structure of competition in the single market?
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What does Art 102 TFEU prohibit?

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If a business is powerful enough to be deemed 'dominant' in it's market, Art 102 prevents it from abusing that position of power

Card 3

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What can happen to businesses that breach these Articles?

Back

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Card 4

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What does Competition law aim to do?

Back

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Card 5

Front

How does EU law protect competition?

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