LECTURE 2 - competition law Flashcards Preview

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Flashcards in LECTURE 2 - competition law Deck (13)
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1
Q

Competition law (definition)

A

Competition law is a set of norms which prevent monopolies and maintain fair competition at the market

2
Q

Monopoly (definition)

A

A position in which one company produces for an entire market or industry

3
Q

Why is a monopoly bad?

A

no competition -> limits innovation, monopolist can charge any price it wants or stop production, the quality will be less important and the customer pays for it all

4
Q

What does competition law? (5)

A
  • Prohibits companies to enter into agreements limiting the competition
  • Prevents very big companies from abusing their dominant position
  • Prevents governments from distorting the competition
  • Prevents monopolies from occurring through merger control
  • Recognizes the necessity of some monopolies
5
Q

Sources of the EU competition law (4)

A
  • TFEU 101 -109 + Protocol no. 27 on the internal market and competition
  • The Merger Regulation (Council Regulation (EC) No. 139/2004)
  • European Commission delegated acts and soft law
  • ECJ case law
6
Q

Enforcement of EU competition law is done in two ways:

A
  • Ex ante approval of mergers and state aid (reviewing before transaction)
  • Ex post investigations (under 101, 102 and 107)
7
Q

Article 101 TFEU prohibits: (5)

A
  • Undertakings and associations of undertakings to
  • Enter in the agreements or engage in concerted practices or make decisions
  • Which may affect trade between member states
  • Which have as their object or effect the prevention, restriction or distortion of competition within the internal market
  • Unless such agreements contribute to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share fo the resulting benefit
8
Q

Undertakings (definition)

A

Undertakings are entities engaged in economic activity

9
Q

Pro-competitive effects (3)

A
  • Block exemptions (pro-competitive effects are generally considered to overweigh anti-competitive effects)
  • Individual exemptions (pro-competitive effects of the individual agreement overweigh the anti-competitive effects)
  • De minimis (anti-competitive effects are insignificant)
10
Q

Article 102 TFEU prohibits (3)

A
  • Undertakings to
  • Abuse
  • Their dominant position
11
Q

The element of dominance includes two sub-elements:

A
  • Product and geographical market

- Share

12
Q

SSNIP test

A

Small but Significant and Non-transitory Increase in Price

13
Q

Abuse (4)

A
  • Unfair prices or conditions
  • Limitation of production supplies or technical development
  • Discrimination (different prices in similar contracts)
  • Tying (imposition of unnecessary service)