Topic 2: Competiton law 2: Antitrust Law in the EU

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Questions and Answers

What is the primary goal of antitrust law in the EU environment?

To promote foreign competition in the EU market

To ensure companies maximize their profits

To maintain equilibrium between demand and market conditions (correct)

To eliminate market monopolies at all costs

Which treaty led to the establishment of TFEU regarding competition regulation in the EU?

Lisbon Treaty (correct)

Rome Treaty

Amsterdam Treaty

Maastricht Treaty

Which articles of TFEU specifically govern competition regulation?

120 and 121

110 and 111

100 and 101

101 and 102 (correct)

What does Article 101 TFEU state about agreements between undertakings?

They are null and void if they alter market equilibrium Signup and view all the answers

According to the principles described, what role does the 'invisible hand of the market' play?

It ensures optimal resource allocation without intervention Signup and view all the answers

What was the primary defense used by Dassonville in his case against Belgian law?

The law was an unjustifiable measure under EU law. Signup and view all the answers

What does MEQR stand for in the context of EU law?

Measures Equivalent to Quantitative Restrictions Signup and view all the answers

Which article of the EU treaty is primarily referenced in the context of MEQR?

Article 34 Signup and view all the answers

In the Cassis de Dijon case, what was the reason for the refusal to import the product into Germany?

The minimum alcohol content was below 25%. Signup and view all the answers

What principle was established by the court regarding goods lawfully marketed in one member state?

They should be free to be marketed in any other member state. Signup and view all the answers

What is necessary for an indistinctly applicable measure to be justified under EU law?

It must satisfy mandatory requirements and be proportionate. Signup and view all the answers

What was the court's ruling on the shop owner's case regarding Sunday closures?

It was an acceptable selling arrangement. Signup and view all the answers

Who expressed concerns about the safety of the lifts sold by the Italian company to the Finnish government?

A civil servant from the Finnish government. Signup and view all the answers

Which of the following is NOT a characteristic of MEQR according to the court's judgement?

It must always be applied explicitly to imports only. Signup and view all the answers

What must a member state demonstrate to rebut the presumption of free marketing of goods?

Mandatory requirements in the national interest. Signup and view all the answers

Which of the following practices is explicitly prohibited under the internal market guidelines?

Connecting contract acceptance to unrelated supplementary obligations. Signup and view all the answers

What does the term 'concerted practices' refer to in the context of competition law?

Actions by businesses that may affect competition, even without an explicit agreement. Signup and view all the answers

How does EU competition law address agreements that may restrict competition?

They are automatically rendered void and ineffective. Signup and view all the answers

Under what condition can an agreement be declared inapplicable according to paragraph 3 of Article 101?

If it imposes restrictions necessary for achieving improved production. Signup and view all the answers

What is one of the key elements that makes an agreement illegal under Article 101?

Directly or indirectly fixing prices between competitors. Signup and view all the answers

What does 'dissimilar conditions' imply in terms of competition law?

Providing different terms to trading parties without justification. Signup and view all the answers

Which case illustrates the assertive powers of EU law in competition matters?

GOOGLE case regarding market abuse. Signup and view all the answers

Why can't a member state constitution negate EU competition law provisions?

EU law produces direct effect and has primacy. Signup and view all the answers

What aspect of competition law is considered subjective?

Who can participate in agreements. Signup and view all the answers

What is the potential effect of practices deemed anticompetitive under competition law?

They may potentially distort commerce across member states. Signup and view all the answers

What may trigger EU law in cases of anticompetitive behavior?

Behaviors that impact markets of other member states. Signup and view all the answers

In the example of Ms. Cartier, which issue constitutes a breach of the licensing agreement?

Selling watches in locations with lower rents. Signup and view all the answers

What principle does EU law apply regarding agreements that affect competition?

The outcome of such agreements regardless of intent. Signup and view all the answers

Which of the following is a necessary condition for a valid agreement under Article 101?

It must allow consumers to share in benefits fairly. Signup and view all the answers

What is considered an abusive position of power within the market according to Article 102 TFEU?

Imposing unfair trading conditions Signup and view all the answers

Which situation best exemplifies excessive pricing?

Charging significantly higher prices than the competition Signup and view all the answers

How is a dominant market position established?

Based on economic analysis of the market uniqueness Signup and view all the answers

What type of conduct can be classified as non-pricing abuse?

Tying and bundling products Signup and view all the answers

According to the Dassonville case, what constitutes a measure having equivalent effect to quantitative restrictions?

All trading rules that can hinder intra-Community trade Signup and view all the answers

What must a company demonstrate to counteract claims of dominant position misuse?

Legitimate market justifications Signup and view all the answers

Which of the following is an example of discriminatory pricing?

Discounting prices for certain regions selectively Signup and view all the answers

What is a key element of the KECK criteria in the context of selling arrangements?

Restrictions on the choice of sales channels Signup and view all the answers

What is a potential risk associated with a dominant position in the market?

Abuse of market power affecting consumers Signup and view all the answers

In the context of patenting living beings, what is a significant concern for breeders?

Maintaining the quality associated with their trademark Signup and view all the answers

Which practice is often deemed abusive within the context of supply agreements?

Creating exclusive supply obligations Signup and view all the answers

How does the European Court of Justice define an unfair trading condition?

Obligations unrelated to the subject of contracts Signup and view all the answers

What two categories of measures are prohibited under Article 34 of the TFEU?

Quantitative restrictions and measures having equivalent effect Signup and view all the answers

Which of the following best describes predatory pricing?

Charging significantly lower prices to eliminate competition Signup and view all the answers

Study Notes

Antitrust Law in the EU

EU competition law aims to balance market demand, eliminating artificial market distortions harming consumers and the market.
The "invisible hand" principle, suggesting free markets best allocate resources, is challenged by interventions aiming for consumer and market well-being.
EU competition law is rooted in the Lisbon Treaty (2011) and the Treaty on the Functioning of the European Union (TFEU).
TFEU provisions (Articles 101 and 102) govern competition within the EU market.

Article 101 TFEU

Prohibits agreements, decisions of undertakings associations, and concerted practices that affect trade between member states and restrain competition within the internal market.
Examples of prohibited agreements include fixing prices, limiting production, sharing markets, or applying unequal conditions to distinct parties without economic justification.
Subjective element: parties involved (agreements, decisions, concerted practices).
Objective element: potential effect on commerce and anti-competitive nature.
Result element: automatic nullity and voidance of anticompetitive agreements and sanctions from EU.
Agreements are deemed null and void even if not intended to restrain competition — unintentional effects are considered.
EU law's scope extends beyond national boundaries; only anticompetitive behavior affecting member state markets is prohibited.
Justifications for agreements are possible (Article 101(3)).
Agreements that enhance production, distribution, or technological/economic progress, benefiting consumers fairly, and not unreasonably restricting competition, are permitted.
Important to understand product type and relevant market when determining the permissibility of agreements.

Article 102 TFEU

Prohibits the abuse of a dominant position within the EU market.
Examples of abusive conduct include excessive, predatory, or discriminatory pricing, and restrictions on distribution.
"Dominant position" is established through market analysis, evaluating uniqueness and market influence.
Dominant position alone doesn't signify abuse; the abuse must be proved by actions.
Two aspects are involved:
- Possessing a dominant market position (i.e., the market reacts to company actions rather than vice versa).
- Engaging in abusive conduct.
Non-pricing practices, such as refusal to supply or bundling, can be abusive.
Significant penalties (financial sanctions) are imposed for breaches.

Freedom of Movement of Goods (FMoGL)

Guaranteed by Article 34 TFEU (imports) and 35 TFEU (exports), prohibiting quantitative restrictions/measures having equivalent effect (MEQRs).
MEQR definition (Dassonville): trading rules hindering intra-community trade. It's a broad interpretation.
Keck criteria distinguish between product requirements and selling arrangements; the latter, if non-discriminatory, aren't MEQRs.
Cassis de Dijon principle: mutually recognized lawfully marketed products (in one member state) can be marketed elsewhere, except for justifiable mandatory requirements in the national interest (e.g., consumer safety, protection)

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Description

This quiz explores EU competition law, focusing on the principles and regulations set out in the Lisbon Treaty and TFEU. It covers key provisions, such as Article 101, which addresses agreements and practices that may hinder market competition. Test your understanding of how these laws affect trade between member states.