Topic 5: Antitrust 3, Competition Law and Market Dominance Quiz

A company's dominant position in the market that allows them to dictate prices or conditions to their competitors.

Any practice by a company that unfairly harms its competitors through their dominant position.

Practices like setting unfair prices, restricting supply, or discriminating against certain customers.

The European Union's main antitrust law, which prohibits abuse of dominant positions affecting trade within the EU.

A list of specific examples of abusive conduct, including imposing unfair prices, limiting production, and discriminating against competitors.

The main antitrust law in the United Kingdom, which prohibits abuse of dominant positions in the national market.

A practice where a dominant company demands unreasonable conditions for contracts, unrelated to the actual subject of the agreement.

Penalties imposed by authorities for violation of antitrust laws.

A legal concept developed by the European Court of Justice, referring to a company's power to act independently of competitors, customers, and consumers in a particular market.

The percentage of total sales in a market controlled by a specific company.

The European Commission's guidelines for assessing dominance, suggesting that companies with less than 40% market share are unlikely to be considered dominant. However, this guideline has been removed in the 2024 proposal.

A rebuttable presumption that a company with more than 50% market share holds a dominant position.

The idea that companies with a dominant position have a unique responsibility to not harm competition.

Assessing dominance based on factors like market share, barriers to entry, and the company's ability to control prices.

The difference in market shares between a dominant company and its competitors.

Companies outside the market that can enter if conditions are favorable, especially when barriers to entry are low.

Conditions that make it difficult for new businesses to enter a market. These can be legal, financial, cost-related, or based on consumer preferences.

Legal restrictions, intellectual property rights (like patents), and administrative authorizations that make it harder for companies to enter a market.

The initial investment needed to start a business, which can be a significant challenge for new entrants.

The advantage larger companies have because their production costs per unit decrease as they produce more.

The benefits a company gains by producing a wider variety of goods, leading to lower average production costs.

The value of the best alternative option lost when making a decision. It can be a significant barrier for new companies entering a market.

The ability of customers to easily switch to competitors, pushing prices down and creating pressure on the dominant company.

The dominant firm's intention is irrelevant when determining if their behaviour is abusive. However, legitimate responses to contract breaches, such as termination, are allowed.

Competition based on merit means competing by being better than others in areas like price, quality, innovation, or services. It's about fair competition.

The EU law that prohibits abusive practices by dominant firms in the market, affecting trade within the European Union.

Legal frameworks that help determine if a dominant firm's actions violate Article 102 TFEU. These frameworks are specific to different types of conduct.

A dominant firm can escape Article 102 TFEU if they can prove their conduct is objectively justified, meaning it's necessary or produces benefits that outweigh the negative impact on competition.

The defense that argues conduct is necessary to achieve a legitimate aim, like protecting the firm from unfair competition or dealing with unusual customer orders.

The defense that claims the conduct generates benefits that outweigh the negative effects on competition. These benefits must be tangible and substantial.

Examples include technical justifications or legitimate commercial considerations. The burden of proof lies with the dominant firm to convincingly explain why their actions are justified.

A company's market dominance allowing it to manipulate prices or conditions against competitors.

Practices that unfairly harm competitors by leveraging a dominant position.

Specific actions taken by a dominant company that violate competition rules.

Agreements where a customer buying one product must also buy another from the dominant company.

A dominant company giving rebates based on the customer's total purchases, not just the rebated product.

A dominant company favoring its own products over those of competitors.

A dominant company's refusal to sell certain products to its competitors.

A dominant company setting prices too low to eliminate competitors.

A dominant company charging a high price for a product while offering a lower price for a complementary product.

A strategy where a dominant company sells products together at a lower price than if they were bought separately. This discourages customers from buying from competitors.

A form of predatory pricing where a company intentionally sells a product below cost to drive out competitors. This is illegal under antitrust law.

A refusal to supply essential goods or services to competitors, effectively shutting them out of the market. Also includes refusing to license intellectual property.

A dominant company charges a much higher price for components (upstream) than for the finished product (downstream), effectively preventing smaller players from competing in the downstream market.

A system where a company offers discounts or incentives to customers who exceed a certain purchase threshold, regardless of whether they exclusively buy from the company.

A pricing strategy where a dominant company offers a discount for buying multiple products together compared to buying them separately.

A dominant firm actively favors its own products over competitors' products, even if competitors' offerings are better. This preference can be through non-pricing tactics.

Various practices beyond those listed, which can be deemed abusive under Article 102 of the EU's Treaty on the Functioning of the European Union (TFUE)