Podcast
Questions and Answers
A company with a dominant market position is automatically in violation of Article 102 TFUE.
A company with a dominant market position is automatically in violation of Article 102 TFUE.
False (B)
Charging excessively high prices to exploit customers is an example of abusive behavior prohibited by competition law.
Charging excessively high prices to exploit customers is an example of abusive behavior prohibited by competition law.
True (A)
Offering different prices to different customers for the exact same product, due to variations in production costs, is generally permissible under competition law.
Offering different prices to different customers for the exact same product, due to variations in production costs, is generally permissible under competition law.
False (B)
Tying contracts are illegal because they restrict consumer choice and limit competition in the tied product market.
Tying contracts are illegal because they restrict consumer choice and limit competition in the tied product market.
A dominant company is legally obligated to supply its products or services to any potential customer, regardless of their distribution strategy.
A dominant company is legally obligated to supply its products or services to any potential customer, regardless of their distribution strategy.
The Microsoft case resulted in a fine due to the company forcing users to install Internet Explorer instead of Windows Media Player.
The Microsoft case resulted in a fine due to the company forcing users to install Internet Explorer instead of Windows Media Player.
Article 102 TFUE applies to any company, regardless of its market share.
Article 102 TFUE applies to any company, regardless of its market share.
Charging prices below cost is always considered fair because it benefits consumers.
Charging prices below cost is always considered fair because it benefits consumers.
Article 2 LDC exclusively deals with mergers and acquisitions.
Article 2 LDC exclusively deals with mergers and acquisitions.
If a company develops a new product and bundles it with an existing popular product, it is automatically a violation of tying contract regulations.
If a company develops a new product and bundles it with an existing popular product, it is automatically a violation of tying contract regulations.
Flashcards
Dominance
Dominance
Having a powerful position in a market.
Unfair pricing
Unfair pricing
Making prices too high or too low to hurt competition.
Discriminatory pricing
Discriminatory pricing
Charging different prices for the same thing to different people.
Tying contracts
Tying contracts
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Refusing to supply
Refusing to supply
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Article 102 TFUE
Article 102 TFUE
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Article 2 LDC
Article 2 LDC
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Study Notes
- Dominance by a company is not illegal, it is the abuse of dominance that is illegal
- Article 102 TFUE and Article 2 LDC prohibit certain actions from dominant companies
Prohibited actions:
- Unfair pricing, either excessively high or artificially low
- Discriminatory pricing, which involves charging different prices for equivalent transactions
- Tying contracts, which compel buyers to purchase an unwanted product, often as part of a package
- Refusal to supply essential goods or services
Notable Cases:
- Microsoft was fined €497 million by the EU for bundling Windows Media Player with Windows
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