Flashcards
Topic 3
Cards in this deck (39)
- 1Use of algorithms can bring economic benefits to market such as __ (4)?Used to optimise prices and quantities
Used in air and hotel industry to dynamically adjust price for seats and hotel rooms to market conditions
In e-commerce, monitor competitors’ prices and adjust own accordingly
Improve quality and products and services such as search results of personalised product recommendations - 2Use of pricing algorithms can increase __?Risk of undesirable parallel pricing (collusion)
- 3Algorithms can __ (2)?Depending on the leeway granted to them
Further develop or completely circumvent previous defined processes and not use parameters given to them - 4With self-learning pricing algorithms __?The operation plans are not only variable, but also not necessarily interpretably by humans
- 5In pricing algorithms used in a cartel are preprogrammed in such a way that __?The parties involved appear to set prices autonomously and thus the proof of concerted practise is more difficult
- 6While cases of explicit collusion are in principle covered by the prohibition on cartels in Art 101, implicit collusion __?Can only be covered by the prohibition of abuse of market power under strict conditions (Art 102)
- 7CollusionWhen firms use strategies that embody a reward-punishment scheme which rewards a firm for abiding by the supracompetitive outcome and punishes departures
- 8Different types of algorithms (5)Monitor competitors’ prices and set suitable responsive strategies
Held synchronise and coordinate price
Monitor compliance with collusive strategies
Monitor irregularities and thus catch collusions
Helps hide activities of former four by masking it behind various actions - 9Exclusive distribution agreementsVertical agreement by which a supplier contracts to sell their goods to one single distributor within a specific territory
- 10In competition law, almost exclusive =Exclusive
- 11Exclusive distribution restricts __?Intra-brand competition
- 12Main reasons for using exclusive distributionIntroduce new brand to market
Economies of scale
Incentives to invest - 13Exclusive distribution is not an __?Automatic restrict of Article 101(1)
- 14Criteria of Metro must be satisfied, in that __?Although price competition is so important that it can never be eliminated it does not constitute the only effective form of competition or that to which absolute priority must in all circumstances be accorded
- 15STM Case (3)Exclusive distribution does not fall within the ‘object box’
Although depending on the circumstances an exclusive distribution arrangement may be held to have the effect of restricting competition in practise
Court noted potential necessity for exclusivity in launching new product - 16Selective distribution agreements (2)Producer imposes minimum requirements for accessing its distribution chain
Will supply all who meet requirements - 17Often, online sales have __?Higher requirements than offline ones
- 18Several reasons for selective distribution (2)Protects products market niche
Preserves brand reputation - 19Common selection criteria for selective distribution (3)Control over marketing activities by sellers
Duties related to customer service provision
Limitations on sale of competing products - 20For offline sales, requirements for distributors often include __(3)?Running own website
Provide or prohibit certain features on sites
Pre-approval of site’s look - 21Selective distribution under EU law by reference to __, which must be met __?Metro criteria
Cumulatively - 22Metro criteria for selective distribution (4)Distributors have to be chosen based on objective qualitative criteria
Requirements must be laid down uniformly
Features of the goods have to necessitate such an agreement for preserving its quality
Proportionality test - 23Vertical price-based restrains typically involve __?Attempts by producers to define or have impact on prices charged
- 24Retail price maintenanceSupplier restricts retail price
- 25Different types of RPMMaximum RPM
Minimum RPM
Fixed
Recommended - 26Maximum RPM and recommended are seldom __?Object restrictions
- 27Fixed and minimum RPM are __?‘By object’ restrictions
- 28Fixed and minimum RPM __?Eliminate intra-brand competition
- 29In the e-commerce sector, the use of minimum or fixed RPM is often motivated by __?Manufacturer concerns about free-riding on offline service provisions
Concerns about aggressive discounting in online distribution that could harm prestigious image - 30Dual pricingWhether charging different prices for online and offline should constitute hard-core vertical restriction
- 31European Commission on dual pricingWhile accepting that manufacturers are generally free to charge different wholesale prices to different retailers, the EC currently takes the view that dual pricing policies constitute hard-core restrictions within Article 4(b) of the VBER, and arguable by implication, object restrictions under Article 101(1)
- 32Most favoured nations clausesMNF clauses guaranteed to a platform that the prices or terms and conditions quoted by suppliers on that platform will be as favourable as those offered on the supplier’s own website or any other platform
- 33MFN narrow clauseSuppliers own website
- 34MFN wide clauseAny other platform
- 35Problems with the MFN clauses (3)Limitation of the interests of platforms in competing on the commission
Limitation for entry of low-cost platform competitors
Helping to organise horizontal collusion between either the hotels or the platforms, by establishing a tool for controlling and sanctioning those who do not comply - 36CotyCourt concluded that a selective distribution system primarily designed t preserve the luxury image of luxury goods is compatible with Article 101(1) so long as Metro I criteria are satisfied
- 37Coty’s approach to third-party platform ban (4)Appropriateness of a third-party platform ban, focused on
Maintaining the association between the goods and the distributor
Preserving a direct contractual link between supplier and distributor
Controlling the sale of luxury goods alongside other non-luxury products - 38Court in Coty took view that the restrictions would ensure that, in the context of online sales __ (2)?Goods will be exclusively associated with authorised distributors
This relationship is one of the very objectives a selective distribution system seeks to achieve - 39Court in Coty reasons that __?Third-party platform ban ‘includes a limitation which is coherent in the light of the specific characteristics of the selective distribution system’
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- Competition Law Flashcards on Topic 3, created by Jordan Quigley on 21/01/2020.
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- Jordan Quigley
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