lecture 2 Flashcards
(9 cards)
what is an undertaking?
Every entity engaged in an economic activity, regardless of the legal status of the entity and the way in which it is financed
the notion of undertaking
(1) entity
(2) single (3) economic activity
entity
unitary organization od personal, tangible and intangible elements and economic, organizational and legal links (e.g. control agreements, interlocking personal relationships)
e.g. Volksvagen is a big company and it has many small legal entities connected to it - unitary organizations (e.g. Volkswagen Germany)
economic activity
economic activity of production and distribiution of economic goods and services
not demand unless it’s taken further by the producer and sold
single activity
from the external perspective of the market is seen as sufficiently uniform
can a parent company be responsible for a subsidiary commiting infringement?
ascending liability
yes, when the parent company exercises a decisive influence on the subsidiary company, e.g., through instructions
= parents liable for children
what if there’s no decisive influence? - presumption of decisive influence
when the parent company controls most of the company capital
or
most voting rights are attached
= presumed decisive influence
can the subsidiary be responsible for infringement by the parent company?
problem: Google, Facebook etc are violating competition law and only the subsidiary is located in the EU and the parent company is located outside
how can we enforce competition rules if the parent company is outside of EU but its behaviour has impact within the EU?
Sumal case
the subsidiary can be held liable if there is a specific link between the economic activity
children responsible for their children
Sumal case
subsidiary’s liability for a parent company infringing competition law
can a subsidiary be held liable for damages resulting from the participation of the parent company in a cartel and can the action be brought before a local court? - YES
