Topic IX - Antitrust and AI Flashcards
(20 cards)
What was the Sherman Act of 1890?
A U.S. law giving government power to break up trusts that restrained interstate trade.
Why was Standard Oil broken up in 1911?
It engaged in horizontal integration, collusion, and was an undue restraint of trade.
What is Taft’s rule of reason in antitrust law?
A restraint is unlawful if removing it increases competition; if unsure, it’s unlawful.
What is the Antitrust Paradox by Robert Bork?
A theory that antitrust should focus on consumer welfare, not just preserving competition.
What was the outcome of Ohio v. American Express?
The SC ruled no antitrust violation because harm was not shown to the entire market.
What critique does Lina Khan offer in her Amazon Antitrust Paradox?
That low prices can mask anti-competitive behavior and stifle innovation.
Why doesn’t the consumer welfare standard work well in the EU?
Because the EU focuses on fair competition and market structure over prices.
What is Article 101 TFEU?
Prohibits anti-competitive agreements between undertakings affecting trade between MS.
What is Article 102 TFEU?
Prohibits abuse of dominant position in the internal market.
What is the EU’s definition of an ‘undertaking’?
Any entity engaged in economic activity, regardless of legal status or financing.
What is the Single Economic Entity Doctrine?
Parent and subsidiary companies are treated as one entity under EU competition law.
What are concerted practices under Article 101?
Coordinated conduct without formal agreement that restricts competition.
What key obligations does the Digital Markets Act (DMA) impose?
Gatekeepers must allow business users to reach consumers without restrictions and avoid data combining or self-preferencing.
Who qualifies as a ‘gatekeeper’ under the DMA?
Firms with a strong, entrenched, and durable position in the internal market.
What are the penalties under the DMA?
Fines up to 10% of global turnover for non-compliance.
What is the goal of the Digital Services Act (DSA)?
To ensure safe and accountable online platforms and content moderation transparency.
What types of platforms are targeted under the DSA?
Very large online platforms with significant EU reach (e.g. 10% of EU consumers).
What are the key restrictions under the Draft AI Regulation?
Prohibits practices like social scoring and real-time biometric identification for general policing.
What determines if AI is ‘high-risk’ under the Draft AI Regulation?
If it is tied to regulated sectors or listed in Annex III (e.g. justice, critical infrastructure).
What are the fines under the Draft AI Regulation?
Up to €30 million or 6% of global turnover, depending on the violation.
