Artical 101

Question 1

What is the purpose of Article 101 TFEU?

Answer 1

Prohibits agreements, decisions, and concerted practices between undertakings that may affect trade between Member States and have the object or effect of preventing, restricting, or distorting competition within the internal market.

Ensures the proper functioning of the EU internal market by fostering competition.

Question 2

What are the key elements of Article 101(1)?

Answer 2

1. Agreement, decision, or concerted practice: Covers formal contracts, informal understandings, and coordinated actions.
2. undertakings: Involves two or more independent economic entities.
3. Effect on trade between Member States: Must influence cross-border trade.
4. Prevention, restriction, or distortion of competition: Includes price-fixing, market-sharing, output limitations, and collusive tendering.

Question 3

What types of agreements are prohibited under Article 101(1)?

Answer 3

Price-fixing: Setting minimum or maximum prices.

Market-sharing: Dividing territories or customers.

Output restrictions: Limiting production to increase prices.

Exclusionary practices: Boycotts or refusing to deal.

Question 4

What are the conditions for an exemption under Article 101(3)?

Answer 4

1.Contributes to improving the production or distribution of goods or promoting technical or economic progress.

2.Provides consumers with a fair share of the resulting benefits.

3.Does not impose unnecessary restrictions.

4.Does not eliminate competition for a substantial part of the market.

Question 5

How is Article 101 enforced?

Answer 5

By the European Commission and National Competition Authorities (NCAs).

Infringing agreements are void (Article 101(2)).

Fines can be imposed (up to 10% of global turnover).

Damages claims by affected parties are allowed under EU law.

Question 6

What is the aim of Chapter 1 of the Competition Act 1998?

Answer 6

Prohibits anti-competitive agreements, decisions, or practices that prevent, restrict, or distort competition within the UK.

Aligns with Article 101 TFEU to maintain a competitive market post-Brexit

Question 7

What are the key features of the Chapter 1 Prohibition?

Answer 7

Prohibits similar activities as Article 101(1) (e.g., price-fixing, market-sharing).

Applies to conduct affecting UK markets, regardless of where the parties are based.

Enforced by the Competition and Markets Authority (CMA).

Question 8

What exemptions exist under the Chapter 1 Prohibition?

Answer 8

1. Individual exemptions: If agreements meet conditions similar to Article 101(3).
2. Block exemptions: Specific categories of agreements pre-approved by the CMA.
3. De minimis exclusion: Agreements of minor significance (market share thresholds).

Question 9

What are the penalties for breaching Chapter 1 Prohibition?

Answer 9

1. Fines up to 10% of worldwide turnover.
   Void agreements.
2. Director disqualifications: Up to 15 years.
3. Criminal penalties for cartel activities under the Enterprise Act 2002.

Question 10

How does Chapter 1 Prohibition apply post-Brexit?

Answer 10

Article 101 TFEU no longer applies directly in the UK.

The Chapter 1 Prohibition governs UK competition law independently.

UK authorities may still consider EU precedents for consistency.