Podcast
Questions and Answers
Article 101 TFEU exclusively prohibits agreements that directly involve setting fixed prices, but does not cover other forms of collusion such as limiting production.
Article 101 TFEU exclusively prohibits agreements that directly involve setting fixed prices, but does not cover other forms of collusion such as limiting production.
False (B)
Under Spanish competition law (Article 1 LDC), companies are permitted to agree to divide customer territories, as long as overall competition in the market is not significantly reduced.
Under Spanish competition law (Article 1 LDC), companies are permitted to agree to divide customer territories, as long as overall competition in the market is not significantly reduced.
False (B)
If a group of retailers collectively decides to increase prices by 30%, they cannot be fined more than 5% of their combined global revenue, according to EU and Spanish competition law.
If a group of retailers collectively decides to increase prices by 30%, they cannot be fined more than 5% of their combined global revenue, according to EU and Spanish competition law.
False (B)
If a company is found to have engaged in collusion, any contracts that resulted from the collusive behavior can still be legally enforced if all parties agree.
If a company is found to have engaged in collusion, any contracts that resulted from the collusive behavior can still be legally enforced if all parties agree.
Directive 2014/104/EU primarily protects rival businesses, but does not give consumers the right to sue for damages resulting from collusive practices.
Directive 2014/104/EU primarily protects rival businesses, but does not give consumers the right to sue for damages resulting from collusive practices.
A verbal agreement between two competing companies to fix prices is not subject to Article 101 TFUE because it is not a written contract.
A verbal agreement between two competing companies to fix prices is not subject to Article 101 TFUE because it is not a written contract.
A group of construction companies secretly agreeing to submit inflated bids for public infrastructure projects could face fines leading up to 20% of their global revenue due to violating competition laws.
A group of construction companies secretly agreeing to submit inflated bids for public infrastructure projects could face fines leading up to 20% of their global revenue due to violating competition laws.
If a company unknowingly enters into a contract that violates Article 101 TFUE due to the other party's collusive practices, that company is still liable for potential fines.
If a company unknowingly enters into a contract that violates Article 101 TFUE due to the other party's collusive practices, that company is still liable for potential fines.
Seeking damages as a victim of collusion is only possible through public enforcement actions initiated by the CNMC or EU Commission.
Seeking damages as a victim of collusion is only possible through public enforcement actions initiated by the CNMC or EU Commission.
Article 101 TFUE and Article 1 LDC consider only horizontal agreements (agreements between competitors) as potential violations, excluding vertical agreements (agreements between firms at different levels of the supply chain).
Article 101 TFUE and Article 1 LDC consider only horizontal agreements (agreements between competitors) as potential violations, excluding vertical agreements (agreements between firms at different levels of the supply chain).
Flashcards
What is collusion?
What is collusion?
Agreements between companies to fix prices, limit production, share markets, or impose unfair trading conditions.
What legal articles prohibit collusion?
What legal articles prohibit collusion?
Article 101 of the Treaty on the Functioning of the European Union and Article 1 of Spanish Competition Law.
Give examples of prohibited collusive practices.
Give examples of prohibited collusive practices.
Price-fixing agreements, production/distribution limits, market sharing, and unfair conditions to buyers/suppliers.
What are the legal consequences of collusion?
What are the legal consequences of collusion?
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What is a private enforcement action?
What is a private enforcement action?
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Study Notes
- Article 101 TFUE and Article 1 LDC prohibit collusion.
- Prohibited activities include price-fixing agreements.
- Prohibited activities include setting limits on production or distribution.
- Market sharing is a prohibited activity.
- Applying unfair trading conditions is a prohibited activity.
Consequences of Collusion
- The CNMC or EU Commission can impose fines for instances of collusion.
- Fines can be up to 10% of the company’s global revenue.
- Contracts resulting from collusion are void.
- Victims can sue for damages since Directive 2014/104/EU.
- Victims can include consumers and rival businesses.
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