(Cases) Competition Law 1

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BPP notes ch 10 art 101 TFEU
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Hofner & Else v Macroton GmbH (Case C-41/90) [1991] ECR I-1979 Hofner concept of an undertaking encompasses every entity engaged nan economic activity, regardless of the legal status of the entity and the way in which it is financed and secondly that employment procurement is an economic activity. egs. individuals, limited companies, partnerships, trade associations, professions, non-profit-making organizations, and state organizations which carry on economic or commercial activities. Court held that: a public employment agency engaged in the business of employment procurement may be classified as an undertaking for the purpose of applying EU competition rules, albeit those in art 102 TFEU. undertakings can also include organizations that lack a profit motive.
Distribution of Package Tours During the 1990 World Cup Decision 92/521 [1992] OJ L 326/31 Italian football association and the local organizing committee were undertakings which fell within art 101,
Motosykletisktiki Omospondia Ella's NPID v Elliniko Dimosio (Case C-49/07) [2008] ECR 4863 MOTOE art 102 not 101, but still eg of no profit making body ELPA was a non profit making body having sole public power to grant the authorization of motorcycle events in Greece. money from sponsorship advertising and insurance contracts. Refused to grant authorization of a rival organization event. Court held that to use its public powers to do this amounted to an abuse of dominance under art 102. ELPA was an undertaking because it was engaged in an economic activity and this was irrespective of the companies legal form and the way it was financed. non profit making was irrelevant as it still competed with other operators who sought to make profit. ELPS's public powers gave it such an obvious advantage over them that the refusal of authorization amounted to an abuse.
Commission v ANIC Partecipazioni SpA (Case C-49/92P) [1999] ECR I-4125 ANIC distinction*** between lawful non collusive or independent behavior and unlawful (101) collusive behavior case: Court held that ANIC's conduct manifested both an unlawful agreement and a concerted practice. Court stated that it was unnecessary to establish into which category the behavior fell, art 101 distinguishes between these types of agreements and connected practices only to widen the net. contact between undertakings direct or indirect, with the object or effect of influencing the conduct of a competitor is what is precluded by art 101, a concerted practice implies conduct pursuant to a collusive agreement.
Bayer AG v Commission (Case T-41/96) [2000] ECR II-3383 Bayer made medicines under the range mane adult. Most ms had a fixed price by national health org. relevant time, prices fixed by french and spanish health auth were on average 40% lower than those in the UK. resulted in sales by Bayer's Britih subsidiary falling by almost a half. Bayer put export ban through French and Spanish wholesalers. Commission held that wholesalers acquiescence = agreement. Court disagreed, said not sufficient proof of agreement, Court's decision upheld as agreement between wholesalers and manufacture as being established on the basis of the mere finding that pre existing commercial relations between the wholesalers and subsidiaries continued.
AC Treuhand AG v Commission (Case T-99/04) [2008] II-01501 Treuhand conduct which at first glance appears to be unilateral may still be found by the EU courts of amount to an agreement where for eg one party tacitly acquiesces to practices and measures adopted by another. consultancy firm contributed actively and intentionally to a cartel between organic peroxide producers by storing secret documents. distributing commercial info within cartel. was part of cartel but not written in the group. causal link made it work.
Vereniging van Cementhandelaren v Commission (Case 8/72) [1972] ECR 977 Vereniging court held that a system of guide or target prices adopted by a trade association for cement wholesalers in netherlands was prohibited by art 101. notwithstanding the associations contention that its members remained free to calculate their own prices for individual transactions.
NV IAZ International Belgium v Commission (Joined Cases 96-102, 104, 105, 108, 110/82) [1983] ECR 3369 ANSEAU-NAVEWA conformity label court held that art 101(1) applies also to associations of undertakings in so far as their own activities or those of the undertakings affiliated to them are calculated to produce the results which it aims to suppress - recommendation even if it has no binding effect cannot escape art 101where compliance with the recommendation by the undertakings to which it is addressed has an appreciable influence on competition in the market in question. import into belgium for product made very difficult.
ICI v Commission (Case 48/69) [1972] ECR 619 Dyestuffs court defined concerted practice: form of coordination between undertakings which without having reached the stage where an agreement properly so called has been concluded, knowingly substitutes practical cooperation between them for the risks of competition uniform increases in the prices of dyestuffs which had been made by several undertakings in the EU within a short time of each other. evidence was inferred due to timing and price info.
A. Ahlstrom Oy v Commission (Joined Cases 89, 104, 114, 116-117, 125-129/85) [1993] ECR I-1307 Wood Pulp Cartel court warned against assuming too easily that parallel behavior is the result of a concerted practice parallel pricing was not found by the court to breach art 101 (1) as it was not the only plausible explanation of rate parallel conduct and could be explained as a normal feature of that market. compare to Dyestuffs where the commission proved that the prices bore no relationship to either supply or demand and where the pricing adopted could not one explained satisfactorily by the producers.
Society Technique Miner v Maschinenbau Ulm GmbH (Case 56/65) [1966] ECR 337 STM case set test for a breach of art 101 (1) -court must be able to foresee with a sufficient degree of probability -on the basis of a set of objectives factors of law or of fact -that the agreement in question may have an influence, direct or indirect actual or potential, on the pattern of trade between MS. the mere potential to affect trade is sufficient.
Brasserie de Haecht SA v Wilkin-Janssen (Case 23/67) [1967] ECR 407 Brasserie de Haecht agreements between belgian brewery and belgian cafe provide that the brewery would lend the car equipment and deny. in return cafe was to obtain supplies from the brewery exclusively. cafe was sued by the brewery for obtaining supplies elsewhere. many such agreements existed and court ruled that was a consideration that could be seen to effect trade from other MS.
Etablissements Consten SARL & Grundig-Verkaufs GmbH v Commission (Cases 56 and 58/64) [1966] ECR 299 eg of an agreement that had a direct effect on inter state trade case dealt with an exclusive distribution agreement. a manufacturer of electronic appliances with a sole distributor in France with exclusive trade marks. In return Consten agreed not to re-export products to tore MS. Agreement created a total ban on parallel imports and exports. thereby providing absolute territorial protection. Commission found the agreement breached art 101 Court held that agreement placed limitation on the freedom of trade between MS.
Competition Authority v Beef Industry Development Society Ltd [2008] ECR I-8637 Beef Industry Development (object) concerned a plan to address over capacity in the beef processing market by reducing the number of been and veal processors. This was achieved by agreements in which certain undertakings agreed to decommission processing plants and to stay out of the market in return they were to be compensated by those undertakings which were to remain as processors. object of agreement was to impede competition.
General Motors Nederland BV and Opel Nederland BV v Commission (Case T-368/00) [2003] ECR II-4491 (Object) adopted several measures in order to reduce the number one cars being exported by their dealers from the netherlands. One measure was to exclude export ales from retail bonuses. measure was held to have the object of restricting competition because whilst it did not prohibit export sales, it did make them less attractive to dealers and to foreign customers.
European Night Services v Commission (Cases T-374, 375, 384, and 388/94) [1998] ECR II-3141 European Night Services how the effect should be assessed: must be bourne in mind that in assessing an agreement under art 101, account should be taken of the actual conditions in which it functions in particular the economic context in which the undertakings operate. 'relevant market'= those products which are seen as being interchangeable or substitutable from the perspective or consumers. i.e. demand substitution.
Pronuptia de Paris GmbH v Prenuptial de Paris Irmgard Schillgallis (Case 161/84) [1986] ECR 353 Pronuptia Dispute over a franchise agreement. a franchise from prenuptial de paris to sell that company' s wedding clothes in three west german cities. agreement obliged prenuptial to supply the clothing to assist with commercial aspects and not to open any other shops in cities where the franchise already operated. was allowed.
Volk v Vervaecke (Case 5/69) [1969] ECR 295 Volk (De Minims defense) German producer of washing machines granted an exclusive distributorship to vervaecke in Belgium and Luxembourg and guaranteed it absolute territorial protection against parallel imports. Volk's share = negligible Court held: insignificant effect on the market.
Notice on Agreements of Minor Importance (2001/C 368/07) [2001] OJ C 368/13 commission has set out the level of activity below which it will consider that agreements do not have an appreciable effect on the market horizontal: having an aggregate market share not exceeding 10% do not appreciably affect competition within the meaning of art 101 (1) Vertical: will not appreciably affect competition where the market share of each undertaking does not exceed 15%. SOFT LAW
Transocean Marine Paint Association (Decision 67/454) [1967] OJ L 163/10 deciioson concerned an association of medium sized marine paint producers from around the world. Object of the association was to enable its members to compete in the world margin paint market. Required paint of a standard description to be available in as many ports as possible. Members agreed to produce identical paints and market them identical packaging with the same packaging with same trade mark. Export was restricted etc. Commission decided that this agreement enabled its members to compete with larger producers of marine paint and so it was entitled to an individual exemption under 101 (3) TFEU.
Guidelines on Vertical Restraints (2010) OJ C130/1 Provides guidance as to how this may work int eh context of internet sales. Basically a website will be passive selling as long as it is not targeted at a territory from which the distributor is excluded by the vertical agreement. The inclusion of language options on such a site will not prevent it from being passive selling. HOWEVER sending unsolicited emails to customers to to particular territorial areas is active selling. Online adverts specifically addressed to customers outside the distributor's territory also constitute active selling.
Manfredi v Lloyd Adriatico Assicurazioni SpA (Joined Cases C-295-298/04) [2006] ECR I-6619 Manfredi reinforced ability to grant damages in national courts re. Cretan any individual can claim compensation of the harm suffered where theres is a causal relationship between that harm and an agreement or practice prohibited under art 101
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