EU Competition Law Overview
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Questions and Answers

What does EU competition law primarily seek to address regarding anti-competitive agreements?

  • Protecting national monopolies
  • Regulating tax policies among Member States
  • Facilitating private business agreements
  • Preventing trade distortions between Member States (correct)

    • Which of the following cases is associated with establishing the legal basis for private enforcement in EU competition law?

  • Qualcomm v. European Commission
  • Pfleiderer C-360/09
  • Courage C-453/99 (correct)
  • Merger Regulation 139/2004

    • What is a significant feature of the Directive 2014/104/EU?

  • It outlines the definition of dominant market positions.
  • It establishes a complete ban on all mergers.
  • It sets specific penalties for cartel behavior.
  • It harmonizes aspects of damages actions across Member States. (correct)

    • Under EU competition law, what are authorities cautioned against regarding mergers?

    <p>Allowing mergers that may reduce market competition</p> Signup and view all the answers

    Which regulation primarily governs the assessment of mergers within the framework of EU competition law?

    <p>Regulation 139/2004</p> Signup and view all the answers

    What is one requirement for arrangements to be exempt from Article 101(3) TFEU?

    <p>They must contribute to improving production or distribution of goods.</p> Signup and view all the answers

    Which of the following practices is prohibited under Article 102 TFEU?

    <p>Limiting production to increase prices.</p> Signup and view all the answers

    Under Article 102 TFEU, applying dissimilar conditions to equivalent transactions affects which of the following?

    <p>Competitive disadvantage for certain parties.</p> Signup and view all the answers

    What constitutes a 'dawn raid' in the context of business takeovers?

    <p>An attempt to acquire a significant number of shares at the start of trading.</p> Signup and view all the answers

    What does the principle of proportionality require in the context of Article 101(3) TFEU?

    <p>The benefits must exceed the competitive harms.</p> Signup and view all the answers

    How is EU competition law enforced publicly?

    <p>Through the European Commission and national competition authorities.</p> Signup and view all the answers

    What does Regulation 1/2003 regulate?

    <p>The enforcement of EU competition law.</p> Signup and view all the answers

    Which of the following is a potential consequence of abusing a dominant market position under Article 102 TFEU?

    <p>Higher prices without improvements in products.</p> Signup and view all the answers

    What is the role of the EU Commission in competition cases?

    <p>To investigate matters and issue a judgment or sanction.</p> Signup and view all the answers

    What happens if an undertaking disagrees with the Commission's decision?

    <p>They can appeal to any relevant court dealing with market or competition cases.</p> Signup and view all the answers

    Which statement is true regarding unilateral actions in EU competition law?

    <p>Unilateral actions may be considered in a contractual relationship context.</p> Signup and view all the answers

    What was the early requirement in finding an agreement in EU competition law?

    <p>Free consent by the parties was required.</p> Signup and view all the answers

    How does the State compulsion doctrine affect competition infringements?

    <p>It can mitigate penalties if state compulsion is proven.</p> Signup and view all the answers

    What is a consequence of private coercion in EU competition law?

    <p>Fines may be reduced if an undertaking can prove coercion.</p> Signup and view all the answers

    What does Article 101(1) of the EU Treaty generally prohibit?

    <p>Agreements that may affect trade between Member States.</p> Signup and view all the answers

    In the context of EU competition law, how is a contract relevant?

    <p>It can include terms unilaterally imposed that may become part of the contract.</p> Signup and view all the answers

    Study Notes

    EU Competition Law

    • EU competition policy aims to protect the competitive process in markets to maximize consumer welfare.
    • A key concern is companies with market power capable of harming consumer welfare, such as reducing output, creating low-quality products, lacking innovation, limiting choice and raising prices.
    • Competition law evaluation considers market power, economic evaluation, monopolies, oligopolies, supply and demand.

    EU Competition Law: Introductions

    • Competition law is a set of rules intended to protect markets and maximize consumer welfare.
    • A core concern in competition policy is companies with significant market power that can harm consumer welfare.
    • Ways a company with market power can harm consumer welfare include, reducing output, lowering product quality, lack of innovation, reduced consumer choice and pricing increases.
    • Evaluation of situations where competition policy might interfere, including market power, economic analysis, monopolies, oligopolies, supply and demand.

    Perfect Competition

    • Perfect competition is an economic model characterized by numerous small firms, homogeneous goods, easy market entry and exit, perfect information and price-takers.
    • It's not a realistic model but is still useful in understanding the benefits of competition, even if imperfect.
    • Societal wealth is maximized when the combined effects of allocative and productive efficiency are maximized.
    • Productive efficiency involves producing goods at the lowest possible cost, while allocative efficiency ensures that resources are used in the most value-maximizing way, benefiting customers with choice and lower prices.

    State of Monopoly

    • A monopoly, unlike a competitive market, has only one provider of a product or service.
    • Monopolists can control the market’s quantity and price. In many cases, a monopolist may raise prices by decreasing the production amount and customers will willing to pay more in order to get the products.
    • In a state of monopoly, the welfare is not maximized, and consumers face a loss in terms of choice and higher prices.

    Competition Law Prohibitions

    • Article 101 TFEU prohibits agreements, decisions and concerted practices that may affect trade among member states and have the object or effect of preventing, restricting, or distorting competition.
    • Article 102 TFEU prohibits undertakings from exploiting a dominant position within the internal market or a substantial part of it in a way that is incompatible with the principles of the internal market - by unfair price manipulation, limiting production, and creating competitive disadvantage to other market players.
    • Important note - agreements or decisions prohibited under Article 101 are automatically void and do not require proof for their illegality.

    Enforcing EU Competition Law

    • EU Competition law is enforced by the European Commission (the Commission).
    • National competition authorities (NCAs) also play a role in enforcing competition law.
    • Private enforcement (companies suing each other for antitrust breaches) also enforces the law.
    • The enforcement system involves administering sanctions, investigating issues, and resolving private disputes.

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    Description

    This quiz explores the fundamentals of EU competition law and its impact on consumer welfare. You'll learn about market power, monopolies, and the importance of maintaining a competitive marketplace. Dive into key concepts that shape the rules governing competition in the EU.

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