comp law

Question 1

What is it:

Answer 1

Under federal antitrust law, it is the policy of the US that private persons may not take actions to interfere improperly in the functioning of competitive markets”

Question 2

What is a competitive market:

Answer 2

Large number of buyers and sellers
No various to entry
Products not homogenous

Question 3

Why compete?

Answer 3

Price
Quality choice
Innovation
Choice Competitive force
Efficient Allocation of Resources

Question 4

Objectives:

Answer 4

Maximize consumer welfare
Protecting the competitive process
Protecting small and medium enterprises
Ensuring efficient allocation of resources
Protect economic freedom
Establishing market integration

Question 5

Origins:

Answer 5

US and EU

US: Sherman act, first legislation
2 main purposes: to break “trusts” (an arrangement by which stockholders in several companies transfer their shares to a single set of trustees)
To restrain monopolies such as railroad cartels

EU: Rome treaty first legislation
Main purpose:

!! In turkey: both private and public enforcement

Question 6

1)Market definition:

Answer 6

The relevant product market:
* Measuring substitutability of products or services (demand or supply side)
* Evidence

The relevant geographic market
* Sustainability and territory
* Evidence

The relevant temporal market

!! when these are 3 there is a relevant market for competition law !!

Question 7

Horizontal Market: competiton among the same layetr

Question 8

Vertical Market: competiton among the same supply chain

Question 9

2) undertaking

Answer 9

Definition: the concept of an undertaking encompasses every entity engaged in economic activity regardless of the legal status of the entity and the way in which it is financed
* Functional approach
* Entity
* Economic activity

Question 10

Turkish competition law

Answer 10

1) Agreements
1.a. Conditions for an agreement:
* Two or more undertakings
* Concurrence of wills
* Single agreement (even if not performed)

1.b Characters of an agreement
* No form requirement
* All evidence can be used.

           1.c. Types of agreements *	 Horizontal agreement ex: price fixing, geographical market sharing *	Vertical agreements (distribution agreements no competing brands, retail agreements)

2) Associations of undertakings
Several undertakings that are part of the same industry or perform the same economic activity in the market

3) Concerted Practices
Elements of a concerted practices:
* Two or more undertakings
* Parallel conduct
* Wilful coordination

           Difficulty in proving wilful coordination:
  Presumption: In the absence of economic justification we presume that coordination is wilful. (even no evidence)
  Competition authority must only prove that there is no economic justification

Question 11

Turkish Competition Law 2

Answer 11

1. Art 4: Prohibiton of agreements, deciisons of associations of undertakings and concerted pratices (Protecttion of the Competition) (by object and effect)
2. Art 6: Prohibiton of the abuse of dominant position
3. Art 7: Control of mergers, acquisitons and joint ventures

Question 12

Article 4:

Answer 12

Prohibition of;
Agreements
Decisions of associations of undertakings
Concerted practices

Prohibitons:
a) Agreements:
a.1. Conditions for an agreemenet:
two or more undertakings
concurrence of wills(parties feel bound by the agreement)
single agreemenet(even if not performed)

a.2. Charachterisrics of an agreemenet
no form requirements (handshake, meeting)
all evidence (emails, meeting minutes)

a.3. Type of agreements:
horizontal (cartels) ex: customer sharing, price fixing, geographical market sharing
vertical agreements ex: retail, distribution agreements

b) Associations of undertakings
Several undertakings that are part of the same industry or perform the same economic activity in the market
Common interest
Competitors

c) Concerted Practices
Elements of a concerted practices:
2 or more undertakings
Parallel conduct
Wilful coordination
Absence of economic rationale
!! difficulty in proving willdul coordination
Presumption: in the absence of economic justification we presume that coordination is willful
Competition authority must only prove that there is no economic justification

Question 13

Article 6

Answer 13

Abuse of dominant position

Dominant position:
Economic power
Market power
Unilateral conduct

Abuse of dominant position:
* Exclusionary position (ex: predatory pricing: below the cost? Aggressive marketing?? Or did you change the strategy??)
* Tying and bundling (buy Microsoft they sell antivirus too, non-complementary products)
* Exploitatice conduct -> Excessive pricing(because of monopoly)

Question 14

Article 7

Answer 14

Control of Concentrations:
(mergers-acquisitions and joint ventures)

Joint venture : A and B don’t dissolve create C
Merge: they dissolve to form C

• First of all: is that creates or strengthens a dominant poisiton
• Significant lessening of competition thereof

Procedure:
* Threshold
* Pre-notification (planning)
* Clearance (Elon Musk was fined because he did not get clearance from Turkey)