Karteikarten
Competition law
Karten in diesem Stapel (57)
- 1CartelRemoving all competitions.
Businesses making deals between themselves that restrict compitition. - 2Article 101 TFEUDeals with bilateral and multilateral practices which prohibits competition.
- 3102 TFEUDeals with a single firm or firms which is dominant in the market.
- 4Vertical agreementRelationship between suppliers and distributers are called distribution agreement.
- 5form baseIt is the way agreements are drafted.
- 6Effects basepractical effects of an agreement.
- 7Article 103 -109 TFEUcontain administrative rules on how articles 101 and 102 are applied.
- 8Article 107-109States aids to businesses by businesses receiving public money to assist them.
- 9Why Article 107 prohibits state aides?Member state may promote advantage to their own industry. Contrary to EU law and principal of single market which require even treatment for all businesses.
- 10Examples of state aid to businesses.1) Ryanair had reduced landing fee granted by belgium airport.
20) UK government took over Northern Rock.
(although the Commission found the aid it to be lawful, future competitive advantage of Northern Rock by offering lower mortgage/ interest rate the commission may change its position ) - 11Commission has delegated responsibility to oversee competition law is regulated through Commission's Directorates- General (DG). The function of DG are.* Develop law and policy relating to competition
* Investigate any breaches
* Give decision on cases
* offer remedy for any breaches
* - 12The Office of Fair tradingIs the National Competition authority (NCA) for UK.
- 13Art 101 (2)Any agreement that is prohibited by Art 101 (1) is void.
- 14Art 101 (1)followings are prohibited
*Directly or indirectly price fixing
*Controlling market, controlling production, technical development or investment.
*Share market. Apply dissimilar condition placing them at a competitive disadvantage.
*Placing condition on acceptance. - 15101 (3)Exemption applies, If the parties can show that their undertaking is to improve production or distribution of goods or promoting technical or economic progress and consumers to take a fair share of profit.
- 16Vertical agreementAgreement between suppliers and distributors. they are at different level of supply chain.
- 17horizontal agreement.Or cartel, parties are at the same level.
- 18Agreement for purpose of competition law is.any kind of commercial contract which is normally in writing, verbal or non binding contracts.
- 19Exclusive territoryTo appoint only one distributor.
- 20Territorial protection.not to sell outside a certain country.
- 21Absolute territorial protection.to restrict even the reselling.
- 22Grundig v CommissionThe Article 101 applies to horizontal agreement as well as vertical agreement.
- 23Concerted practiceinformal agreement to act in a certain way.
- 24Association undertakingGroup of trade association join together to create a body representing the interest of the its members.
- 25Concerted practicesInformal corporation between undertakings which is anti competition
- 26Areas to consider when deciding that effect of an agreement is anti competitive.*nature and quality of products.
* position and size of parties involved.
*it is isolated or series of agreements
* severity of clauses
*Opportunity of competitors to deal with the same products. - 27Societe technique Miniere v Maschinenbau Ulm GmbH [1966]. factor that may affect trade between Member States.nature and quality of products.
* position and size of parties involved.
*it is isolated or series of agreements
* severity of clauses
*Opportunity of competitors to deal with the same products. - 28"Object" in Article 101(1) Described asThere are some kind of agreement.
- 29Effect in Article102 (1) relates toThe object has to restrict competition
- 30Blue pencil testTerm of the contract that is anti competition can be removed and contract is still valid. this is under national law of setting the contract
- 31Whistleblowing.Leniency Notice in cartel cases
commission is lenient or give immunity. - 32Notice on Agreements of Minor Importance. (NAAT) (Competition authorities decide that arrangement is too small)When the parties or arrangement affects limited area
- 33Agreement is small whenwhen aggregate share of the market of parties does not exceed 10% of the market affected when they are competitors.
15% if they are not competitors - 34non competitors are normally vertical agreementscompetitors are normally horizontal
agreements - 35Hardcore terms (strictly forbidden)Minimum price fixing and
export ban. - 36The meaning of Undertaking within Eu competition law.Any business engaged in economical activity.
- 37Article 102 (82 EC) is satisfied when here is ?There is one or more companies involved.
In position of dominance
Abusive behaviour. - 38In Article 102 there is no arrangement or concerted behaviour between companies. It relates to dominant company. It is often one company that infringes the competition law.Article 101 relates to undertaking of 1 or more companies with arrangement
or agreement. - 39Re Italian flat glass [1992]Dominance can be collective dominance.
- 40Dominance position has to be within or predominately within the common market it is expressed asDominant in relavant geographical market. (RGM)
or
Relevant product market or (RPM) - 41United Brand v commission [1978] Importer of banana.first described what dominance was.
being in position of economical strength, preventing effective competition. - 42Test for Relevant Product market (RPM) is United brand caseIs it interchangeable or can be substituted
- 43Market share was described in AKZO Chemie v Commission1 Duration of market position.
2 barrier to entry (cost of setting up plant patent).
3 Possession of financial and technical resources. - 44United Brand v commission [1978] Importer of banana.Described what abuse is.
Abusive prising
refusing to supply.
Price as much as market can take.
Dominance.
Demand substitutability.
Market structure.
Vertical integration. - 45How companies avoid breach of Article 101Have a subsidiary company in another member states.
Business is either too small or effect limited area.
Business does not cause any problems in practice.
Under individual exemption. - 46The 'Vertical agreements' Block exemption. Regulation 330/1010The benefit which flows from them outweighs the potential anti-competitive effect.
Research and developments - 47Article 107 (2)Lists type of aids permitted by state.
i.e to correct the damage caused by natural disaster.
to help the economy of individual country. ie German unification. - 48Article 107 (3)List type of aids that may be permitted by commission.
i.e. To raise the law standard of living.
To promote EU objective.
To promote cultural herritage. - 49To establish infringement of Article 102. the Competition authorities have to satisfied thatthere is an abuse
there is one or more undertakings
in the position of dominance with in the single market.
May effect trade between member states. - 50Main tests for definition of relevant product market.Demand substitutability
Supply substitutability - 51Demands substitutiondetermination of range of products available to consumers
- 52Supply substitutioncompanies can substitute their products with minimum cost and short time.
- 53Hugin Kassaregister v commissionExample of dominant position in a RPM
- 54RGM Hilti AG v CommissionIn the absence of factors RGM is the whole of EU.
Factors can be high cost of transport or product is bulky. - 55Dominance once RPM and RGM is established, to consider factorsMarket share
the length of time the business has been able to sustain the market share.
Cost of setting up the business.
Pocession fof substantial investment or expertise. - 56Abusive in relation to Art 102 competition.Ban distribution
refuse supply
impose different selling price
charge unfair selling price. - 57Notice on Agreements ofMinimal Importance NAOMIOnly applies to horizontal agreements.
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- 2 Competition law Karteikarten am Competition law, erstellt von haideh_hillier am 19/08/2013.
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