WEEK 4, CH7 Flashcards

(53 cards)

1
Q

What context was the EU formed in?

A

war and peace

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2
Q

What characterizes EU law?

A

EU law is characterized by SUPRANATIONAL LAW

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3
Q

What is supranational law?

A

A type of law where EU legislative bodies and the European Court of Justice (ECJ) shape laws that are directly applicable in member states.

in easier words: EU lawmakers and the EU’s main court help make rules that automatically apply in every country that’s part of the EU.

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4
Q

What are two key implications of supranational EU law?

A
  1. Citizens can invoke EU law in domestic courts: they can use EU rules in their own country’s courts
  2. EU law takes precedence over national law: EU law is more powerful than each country’s own law
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5
Q

What three areas structure free trade in the EU?

A
  1. The Four Freedoms
  2. Harmonization of law
  3. Competition rules
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6
Q

What do the three areas of EU free trade create?

A

A common market with free movement of goods, people, services, and capital.

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7
Q

What are the Four Freedoms in the EU?

A

Free movement of goods, people, services, and capital.

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8
Q

Which of the Four Freedoms is often emphasized the most?

A

The free movement of goods

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9
Q

What are the two principles behind the Free Movement of Goods in the EU?

A
  1. Ban on all fiscal restrictions (not allowed to charge extra money when goods move from one country to another)
  2. Elimination of all quantitative restrictions to trade (EU countries cannot put a limit on how much of something can be imported or exported)
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10
Q

What does Article 30 TFEU prohibit?

A

It prohibits customs duties and similar charges on goods crossing borders within the EU.

governments cannot charge extra taxes or fees just because the product is from another EU country

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11
Q

What does Article 110 TFEU ensure?

A

That national taxes do not discriminate against foreign products.

A country can’t tax products from other EU countries more heavily than it taxes its own products.

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12
Q

What do Articles 34 & 35 TFEU ban?

A

They ban quantitative restrictions on imports/exports and any measures with equivalent effect (MEE).

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13
Q

What are the rules on import/export duties in the EU?

A
  1. All duties are forbidden, even if not protectionist: EU countries are not allowed to charge border fees on goods from other EU countries, even if the reason isn’t to help their own businesses.
  2. Charges with equivalent effect are also forbidden: Countries can’t charge a different kind of fee that does the same thing as a border tax.
    If it makes the product more expensive just because it came from another EU country → Still not allowed.
  3. Exception: fees for specific services (like inspections at borders): The only time you can charge a fee is if you’re doing a real service.
    Example:
    Checking if food is safe or clean → Okay to charge a small fee for that service.
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14
Q

What is a Measure Having Equivalent Effect (MEE)?

A

A domestic rule that impacts imports like a trade restriction

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15
Q

court principle on MEE

A

mutual recognition and rule of reason

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16
Q

What is the principle of Mutual Recognition?

A

A product legally sold in one EU country can also be sold in any other EU country.

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17
Q

What is the Rule of Reason in EU law?

A

It’s an exception to Mutual Recognition — if a country has a justified reason (e.g., public health or consumer safety), it can restrict goods.

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18
Q

What are Sales Modalities?

A
  1. Rules about how products are sold (e.g., store hours, advertising).
  2. These are allowed if they don’t discriminate and don’t directly affect the product itself.
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19
Q

Who has the right to move and live freely within the EU?

A

All citizens of EU member states

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20
Q

Does the right to free movement only apply to workers?

A

No, it applies to all EU citizens and even to their non-EU family members.

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21
Q

What are the residence rights for EU citizens for up to 3 months?

A

They can enter and stay in any other EU country without restrictions.

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22
Q

What are the residence rights for 3 months to 5 years?

A

They can stay if they are working, self-employed, studying, or have enough money and health insurance.

23
Q

What happens after 5 years of living in another EU country?

A

They gain the right to permanent residence (the “five-year rule”).

24
Q

What is the Schengen Area?

A

A group of European countries that have removed internal border checks between each other.

25
Does the Schengen Area include all EU countries?
No, it includes some non-EU countries (like Norway) and excludes some EU countries (like the UK).
26
What does the Schengen Area improve besides travel?
It improves border policy, asylum rules, and law enforcement cooperation.
27
Why is the free movement of persons economically important?
It helps workers and self-employed people move freely to work or start a business in other EU countries.
28
What is the Free Movement of Services?
It allows temporary cross-border service activity between EU countries.
29
What is the Freedom of Establishment?
It allows permanent setup (like opening an office) in another EU country to provide services.
30
Are trade barriers to services allowed in the EU?
No — trade barriers to service establishment are prohibited under EU law.
31
What does Article 63 TFEU say about capital?
It bans restrictions on moving capital and making payments across EU borders.
32
What activities are included in free movement of capital?
Buying/selling real estate, mortgages, company shares, and investments.
33
Why is the free movement of capital important in the EU?
It supports free financing across borders and reduces trade barriers by limiting exchange rate problems.
34
What is the goal of harmonization of EU law?
To remove trade barriers and support the four freedoms (goods, people, services, capital).
35
What are the two levels of EU legislation?
Primary legislation: Treaties signed by member states Secondary legislation: Laws made by EU institutions based on those treaties
36
What is a Regulation in EU law?
A law that applies directly in all member states, without national approval.
37
What is a Directive in EU law?
A rule that sets a goal, and each country decides how to meet it.
38
What is a Decision in EU law?
A rule for specific people or cases.
39
What are Recommendations or Opinions?
They are non-binding guidance — not legally enforceable.
40
What is the goal of EU Competition Law?
To make sure markets are fair and competitive by stopping bad business practices.
41
What are the 3 main areas of competition law?
1. Prohibition of cartels 2. Abuse of dominant position 3. Rules on mergers and concentrations
42
What does Article 101 TFEU ban?
Cartels — agreements that harm competition, like: Price fixing Market sharing Limiting production Discriminatory terms Unfair contracts
43
When is a cartel allowed (exemption)?
Only if all are true: Helps production or economic progress Helps consumers Necessary for the goal Does not distort competition too much
44
What does Article 102 TFEU prohibit?
It prohibits companies from abusing a dominant market position.
45
What are examples of abusing a dominant position?
1. Price fixing 2. Limiting or controlling production or markets 3. Discriminatory trading conditions 4. Unfair contract terms not related to the product
46
Which case established the definition of dominant position?
The Hoffmann-LaRoche case
47
When does a dominant position exist?
When a company can act independently of competitors — controlling price, supply, etc.
48
Why is dominance a problem?
Because competitors can’t meaningfully affect the market, leading to unfair control.
49
What are the two parts of the relevant market test?
Product market: Are there real substitute products? Geographic market: Is the market size affected by location?
50
What are “concentrations” in competition law?
Mergers, joint ventures, or takeovers where companies combine.
51
Why are concentrations regulated?
Because they may harm free competition if not monitored.
52
When must the EU be informed about a concentration?
If it affects trade between EU countries (called having a community dimension), the European Commission must be informed before the deal goes ahead.
53