7. EU Competition Law (Cartels & Mergers)

Question 1

Focus of Competition law:

Answer 1

ensuring that firms operating in the free market economy do not restrict or distort competition in a way that prevents the market from functioning properly

Question 2

Anti-competitive business practices:

Answer 2

o threaten the internal market
o harm consumers
o may harm small and medium-sized businesses
o reduce business efficiency

Question 3

Fundamental Freedoms vs. Competition Law

Answer 3

In contrast to the Fundamental Freedoms, EU competition law therefore primarily places private companies under an obligation, while the freedoms mainly address member states

Question 4

EU Provissions

Answer 4

• EU Competition Law
• Rules on competition
• State Aid
• Art. 101 TFEU - Coordinated Restriction
• Art. 102 TFEU - Unilateral Restriction
• Art. 107 TFEU - Restriction of aids granted by states

Question 5

Horizontal agreements within ART 101 TFEU

Answer 5

between parties operating at the same level of the
production/distribution chain, e.g. agreement between
manufacturers or retailers.

Question 6

Vertical agreements within ART 101 TFEU

Answer 6

between parties operating at different levels of the
production/distribution chain, e.g. distribution
agreement between manufacturer and retailer.

Question 7

An agreement between parties operating at the same level of the production/distribution chain is a:

a. Vertical Agreement
b. Horizontal Agreement

Answer 7

b.

Question 8

Exemptions for Art. 101 are given in:

a. Art. 102
b. Art. 101(1)
c. Art. 101(3)
d. Art. 101(2)

Answer 8

c.

Question 9

Exploitative abuse targets:

a. Consumers
b. Competitors

Answer 9

a.

Question 10

Which Article deals with the abuse of a dominant position?

a. Art. 101(3)
b. Art. 101(2)
c. Art. 102
d. Art. 101(1)

Answer 10

c.

Question 11

Is it important to decide on the relevant market when determining a dominant position?

a. No
b. Yes

Answer 11

b.

Question 12

What is an example of a horizontal agreement famous case?

Answer 12

Example: Phoebus cartel&raquo_space; In 1925 American and European Light bulb manufacturers agreed to lower the life of light bulbs

Question 13

Art. 101(3) exemption are more likely to apply in:

a. vertical agreements
b. horizontal agreements

Answer 13

a. vertical agreements

Question 14

Types of abuses, explain it

Answer 14

1. Exploitative → targets consumers

2. Anti-competitive → targets competitors

Question 15

What do we consider to be a dominant position?

Answer 15

• Operating in a specific market
• Criteria
➢ Market share (depends on market structure)
➢ Duration of market position
➢ Financial / Technological resources
➢ Barriers to entry