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M9318 COMP LAW EXAM > Cartels And Collusion > Flashcards

Cartels And Collusion Flashcards

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1
Q

What is a cartel?

A

A cartel is a secret agreement or practice between competitors to restrict competition, typically by fixing prices, sharing markets, limiting production, or rigging bids.

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2
Q

What is collusion?

A

Collusion involves any coordinated behavior between undertakings that restricts competition, whether explicit (formal agreement) or tacit (informal understanding).

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3
Q

Which legal provisions address cartels in EU competition law?

A

Article 101(1) TFEU prohibits agreements, decisions, and concerted practices that restrict competition.

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4
Q

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

A
  1. An agreement, decision, or concerted practice.
  2. Between undertakings.
  3. With the object or effect of restricting competition.
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5
Q

Which provisions govern cartels in UK competition law?

A

Section 2 of the Competition Act 1998 (the Chapter I prohibition) mirrors Article 101 TFEU and prohibits anti-competitive agreements.

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6
Q

What additional tool does the UK have for cartel enforcement?

A

The Enterprise Act 2002 makes cartel activity a criminal offense for individuals involved in price-fixing, market-sharing, or bid-rigging.

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7
Q

What is price-fixing?

A

Agreeing on prices or pricing strategies.

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8
Q

What is market-sharing?

A

Dividing customers, territories, or sectors.

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9
Q

What is output limitation?

A

Restricting production or supply.

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10
Q

What is bid-rigging?

A

Manipulating tender processes to favor specific parties.

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11
Q

What is the difference between an agreement and a concerted practice?

A

Agreement: Formal or informal arrangement between parties.
Concerted Practice: Coordinated behavior without a formal agreement, evidenced by indirect communication or conduct.

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12
Q

Is proof of intent required for a concerted practice?

A

No, intention is not required; conduct and effects are sufficient.

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13
Q

What is an ‘object’ restriction?

A

Practices that are inherently anti-competitive (e.g., price-fixing). No need to prove actual harm.

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14
Q

What is an ‘effect’ restriction?

A

Practices that harm competition in practice. Requires economic analysis to demonstrate anti-competitive effects.

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15
Q

What is the main difference between ‘object’ and ‘effect’ restrictions?

A

‘Object’ restrictions do not require proof of actual harm, while ‘effect’ restrictions require economic analysis to show harm.

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16
Q

ARE CARTELS EXEMPT UNDER EU OR UK LAW

A

YES.
101 3 TFEU OR SEC9 OF COM ACT1998, AGGREEMENT EXEMPT IF

  1. IMPROVES PRODUCTION OR DISTRIBUTION OR PROMOTES TECHNICAL OR ECONOMIC PROGRESS
  2. CONSUMER REVIEVES A FAIR SHARE OF BENIFITS
  3. IT IS INDESPENSABLE TO ACHIEVING RHESE BENEFITS
  4. DOES NOT ELIMINATE COMPETITION
17
Q

HOW ARE CARTELS DETECTED

A
  1. LENIENCY PROGRAMS: firms report their invlovement in exchange for reduced fines
  2. Whistleblowers- reports from individulas wiht insider knowledge
  3. Market mointoring - sus pricing patterns or makret behaviour
18
Q

PENLITIES FOR CARTELS IN EU/UK

A

10% GLOBAL TURNVOER FOR UNDERTAKING INVOLVED EU.

UP TO10% UK TURNOVER.
CRIMINAL SANCTIONS-5 YEAR IMPRISONMENT AND OR UNLIMITE FINES FOR INDIVIDULAS UNDE ENTERPRISE ACT2002.

19
Q

PRUPOSE OF LENIENCY PROGRAMS IN CARTEL ENORRCMENT?

A

INCENTIVIZE CARTLES TO COME FORWARD AND DISCODE THEIR INVOLVEMENT IN ECHAMGE FOR IMMUNIT OR REDUCED FINES

20
Q

CONDTIONS OF LENIANCY I EU

A

EUROPEAN COMMISIONS:
REQUIRES FRIM TO:

PROVIDE SUFFICENT EVDIENCE TO EXPPOSE CARTEL

COOPERATE FULLY N CONTINUOUSLY

CEASE CARTEL ACTIVIRTY IMMEDIATELY

21
Q

CONDITIONS FOR LEINCY IN THE UK

A

CM OFFERS FIR

FULL COOP N DISCLOSURE

NO COERCION FROM OTHE CARTEKL MEMEBRRS.

22
Q

HOW IS ECON ANALSYSIS USE IN DETCIN CLLUSION

A
  1. PARALLEL PRICING OR SUS MRKET CONDUCT
  2. ORICES CORRELATIONS INCOCNSISITENT WITH CONPETITIV MARKETS
  3. STRUCTURAL FACTORS CONUDCIVE TI COLLUSION EG. HIGH MARKET CONENTRATION
23
Q

CASE LA W EU

A

TRUCK CARTEL- EUROPEAN COMMISIONS FINED TRUCK MANUFACTURER S2.93 BN EUROS FOR ORICE FIXING AND COORDINATIN TIMELINES FOR EMISSION TECH NOLOGIE S

24
Q

UK CARTEL CAS

A

GALVANSIED STEEL TANKS
- CMA FINED SUPPLIERS FOR MARKET SHARING AND BID RIGIGN IN THE WATER TANK INDUSTRY

M9318 COMP LAW EXAM (8 decks)

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