Topic 2: Competition law 1: Regulation of International Free Competition

Agreements between competitors aimed at limiting competition, such as price-fixing, market-sharing, or restricting production.

A company with a dominant market share that abuses its power by engaging in practices like predatory pricing, refusal to supply, or unfair trading conditions.

Rules and regulations that aim to prevent monopolies and ensure fair competition, often enforced by government bodies like the European Commission or the US Federal Trade Commission.

A process where two or more companies merge or one acquires another, which can have implications for competition depending on the market share of the combined entity.

The EU's primary legislation aimed at ensuring free and fair competition within the European Union.

The EU's legislation targeting companies that abuse a dominant market position.

A key WTO agreement that aims to prevent countries from using quotas or other quantitative restrictions to limit trade.

A WTO agreement that aims to balance intellectual property protection with free trade by preventing the abuse of intellectual property rights to restrict competition.

A company with a dominant market position cannot use its power unfairly to harm competition. This includes practices like setting excessive prices or excluding competitors.

Mergers between companies are reviewed to ensure that they don't create a situation that could harm competition.

Governments cannot provide financial aid that unfairly advantages certain companies and harms competition.

International trade rules prevent unfair trade practices like dumping (selling goods below cost to eliminate competitors) and excessive import restrictions.

A business practice that is considered unfair in relation to consumer transactions is called a UCPD (Unfair Commercial Practices Directive).

Advertising that is misleading or deceptive, including actions like providing false information and omissions like leaving out crucial information that would impact consumer decisions.

The UCPD applies to businesses that target or engage with consumers (B2C relationships), but it doesn't cover transactions between businesses (B2B).

The UCPD focuses on the average consumer's understanding of a message, ensuring that the average person wouldn't be misled.

The UCPD is an EU-wide regulation that directly applies in member states. Each member state can add further protections but can't offer less consumer protection than the UCPD provides.

Member states cannot implement national rules that are stricter than the UCPD.

The UCPD aims to protect consumers from practices that hinder their ability to make informed purchasing decisions by regulating business-to-consumer practices.

Annex I of the UCPD lists unfair commercial practices that are always illegal, without any room for interpretation. These practices are deemed harmful to consumer welfare.

If a business engages in unfair practices, the Member State it's based in can impose sanctions or fines. Consumers might be able to cancel contracts and get refunds.

The EU generally doesn't intervene in cases where the economic loss is small or doesn't cause significant harm to the consumer.

A consumer is defined as a natural person acting outside their professional capacity. This includes individuals acting in their personal role.

A principle within EU law that ensures goods can be traded freely across EU member states with minimal restrictions.

The EU law that establishes the basis for a customs union between EU member states, removing tariffs and quantitative restrictions on goods traded between them.

This EU law prohibits quantitative restrictions and measures that effectively restrict the amount of goods imported or exported between EU Member States.

This EU law prohibits quantitative restrictions on goods being sold to other EU member states.

This EU law lays out exceptions to the free movement of goods, allowing restrictions based on legitimate public policy concerns like public health, security, or environmental protection.

A principle stemming from the Cassis de Dijon case that states that if a product is lawfully marketed in one EU member state, it should generally be allowed to be sold in other member states even if national regulations differ.

EU directives aimed at harmonizing standards for goods like food, chemicals, and medicines across member states, ensuring they meet common safety and quality standards.

The principle that restrictions placed on the movement of goods should utilize the least restrictive means possible to achieve the intended legitimate objective.

The European Court of Justice (ECJ) plays a key role in interpreting and enforcing the freedom of movement of goods, balancing free trade with national interests and resolving disputes.

A single unified market where goods can be traded freely between EU members without tariffs or significant barriers, enabling competition and lower prices for consumers.

By enabling free trade, the freedom of movement of goods helps reduce costs for consumers as goods can be sourced more efficiently.

The freedom of movement of goods facilitates trade by eliminating barriers to businesses operating across borders, promoting economic activity.

By enabling free trade, the freedom of movement of goods fosters cooperation and integration among EU members, promoting economic growth.

A commercial practice is misleading if it significantly affects a consumer's ability to make an informed decision, leading them to make a transaction they wouldn't have otherwise. This can be due to false or deceptive information, omissions, or aggressive practices.

This annex lists practices that are automatically considered unfair, preventing businesses from engaging in them. These practices are deemed particularly harmful and misleading.

These articles outline specific types of unfair commercial practices beyond those listed in Annex I. This includes misleading actions (false info), misleading omissions, aggressive practices, and harassment.

A general definition of unfair commercial practices that applies if no specific provisions from Annex I or Articles 6-9 apply. This is used as a last resort to identify practices that are unfair but not explicitly covered elsewhere.

Making a false statement about a product or service to mislead consumers, such as claiming a product is 'limited edition' to create a sense of urgency.

Making false claims about a product's ability to cure or alleviate health conditions without scientific evidence, potentially harming consumers.

Prohibited business models that rely on misleading consumers by promising high returns through recruitment rather than actual sales of products or services. These schemes ultimately collapse, harming participants.

Practices where businesses provide false information or present products/services deceptively to mislead the average consumer. This includes misrepresenting features, quality, or price.

practices where businesses intentionally omit essential information about products or services, which can mislead consumers. This includes failing to disclose risks, limitations, or important details.

Practices where businesses exert undue pressure on consumers, such as threatening or coercing them into a transaction. This includes using aggressive sales tactics or intimidation.

Practices that involve harassment, coercion, or undue influence, exploiting consumers' vulnerabilities, such as targeting elderly people with financial threats.

Exaggerations in marketing are generally allowed as long as they are clearly understood as puffery and don't mislead consumers. However, extreme exaggerations that distort consumer decision-making are prohibited.

The legal framework established by the European Union to ensure fair competition and prevent market distortions caused by anti-competitive practices. This aims to protect consumers and businesses from unfair market practices.

Article 101 of the Treaty on the Functioning of the EU prohibits anti-competitive agreements between businesses that distort competition within the EU, such as price-fixing, market-sharing, and bid-rigging.

Article 102 of the Treaty on the Functioning of the EU prohibits businesses from abusing a dominant position in the market to prevent competition. This includes predatory pricing and discriminatory practices.

The EU regulates mergers and acquisitions to prevent reduced competition, particularly those involving large firms. The European Commission has the power to review mergers and impose conditions to ensure fair competition.

The European Commission, along with national competition authorities, enforces EU competition law. They investigate violations, impose fines, and issue decisions.