Podcast
Questions and Answers
A group of competing retailers agree to uniformly increase the price of a specific brand of shoes. Which type of collusion does this arrangement exemplify?
A group of competing retailers agree to uniformly increase the price of a specific brand of shoes. Which type of collusion does this arrangement exemplify?
- Price-fixing agreement (correct)
- Unfair conditions to buyers/suppliers
- Market sharing
- Production limits
Two major telecommunication companies decide to divide the national market, with one focusing on urban areas and the other on rural areas. Which type of prohibited agreement does this scenario represent?
Two major telecommunication companies decide to divide the national market, with one focusing on urban areas and the other on rural areas. Which type of prohibited agreement does this scenario represent?
- Price-fixing agreement
- Unfair conditions to buyers/suppliers
- Production or distribution limits
- Market sharing (correct)
A cartel decides to reduce the overall output of a particular product to inflate market prices. Under Article 101 TFUE, what specific type of collusion is being practiced?
A cartel decides to reduce the overall output of a particular product to inflate market prices. Under Article 101 TFUE, what specific type of collusion is being practiced?
- Market sharing
- Imposing unfair trading conditions
- Price-fixing
- Production or distribution limits (correct)
A supplier mandates that its distributors can only sell its products if they also agree to purchase a less desirable product in their catalog. What type of anti-competitive conduct is demonstrated?
A supplier mandates that its distributors can only sell its products if they also agree to purchase a less desirable product in their catalog. What type of anti-competitive conduct is demonstrated?
If the CNMC determines that a company has engaged in a practice prohibited by Article 1 LDC, what is the potential maximum fine that can be imposed?
If the CNMC determines that a company has engaged in a practice prohibited by Article 1 LDC, what is the potential maximum fine that can be imposed?
Following the implementation of Directive 2014/104/EU, which of the following parties is entitled to sue for damages resulting from a collusive agreement?
Following the implementation of Directive 2014/104/EU, which of the following parties is entitled to sue for damages resulting from a collusive agreement?
A group of construction companies secretly agrees to submit inflated bids for public projects. Besides potential fines, what other legal consequence might arise from this collusion?
A group of construction companies secretly agrees to submit inflated bids for public projects. Besides potential fines, what other legal consequence might arise from this collusion?
Two competing firms agree that one will not sell its products in the other's established territory. How would regulators classify this agreement under competition law?
Two competing firms agree that one will not sell its products in the other's established territory. How would regulators classify this agreement under competition law?
If a company is found to have participated in a cartel, what is the primary legislation under which the EU Commission can impose fines?
If a company is found to have participated in a cartel, what is the primary legislation under which the EU Commission can impose fines?
What is the main objective of allowing private enforcement actions for breaches of competition law under Directive 2014/104/EU?
What is the main objective of allowing private enforcement actions for breaches of competition law under Directive 2014/104/EU?
Flashcards
Collusion
Collusion
Agreements that set prices, limit production/distribution, or divide markets.
Article 101 TFUE
Article 101 TFUE
Article 101 of the Treaty on the Functioning of the European Union prohibits anti-competitive agreements.
Article 1 LDC
Article 1 LDC
Article 1 of Spanish Competition Law prohibits anti-competitive agreements.
Fines for Collusion
Fines for Collusion
Signup and view all the flashcards
Private Enforcement
Private Enforcement
Signup and view all the flashcards
Void Contracts
Void Contracts
Signup and view all the flashcards
Study Notes
- Article 101 TFUE and Article 1 LDC prohibit collusion.
- Collusion includes price-fixing agreements.
- Collusion includes production or distribution limits.
- Collusion includes market sharing.
- Collusion includes applying unfair conditions to buyers/suppliers.
Consequences of Collusion
- The CNMC or EU Commission can impose fines for 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 include consumers and rival businesses.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
