competition law

Question 1

types of efficiency

Answer 1

1. static effeciency
2. dynamic effeciency

Question 2

what is static effeciency

Answer 2

1. lower prices
2. better quality
3. more choice

Question 3

what is dynamic effeciency

Answer 3

1. efficient allocation of resources
2. management and tech improvements
3. product innovation

Question 4

purpose of competition law

Answer 4

ensures that free market competition is maintained

Question 5

what does egyptian competition forbid?

Answer 5

1. anti-competitive agreements
2. monopolistic competition
3. abuse of dominance

Question 6

what is market power?

Answer 6

ability of a firm/group to control prices and limit outputs

Question 7

types of horizontal agreements

Answer 7

cartel

Question 8

types of carterls

Answer 8

1. price fixing
2. market allocation
3. bid rigging
4. production, distribution, or market limitations

Question 9

what is price fixing?

Answer 9

Cartel members agree to charge the same price for goods or services to eliminate price competition.

Question 10

what is market allocation?

Answer 10

firms agree to split market among themselves so they don’t compete in each others sectors

Question 11

what is bid rigging?

Answer 11

Members coordinate during a bidding process, ensuring one of them wins the contract

Question 12

what are production, distribution, or market limitations?

Answer 12

agreements that limit the amount of products that can be produced or distributed or restrict where they can be solf

Question 13

what is the relevant market?

Answer 13

market segment analyzed to determine competition

Question 14

components of relevant market

Answer 14

1. products/services seen as substitutes
2. geographic locations where companies operate under similar conditions
3. timeframe (duration of analysis)

Question 15

types of geographic locations

Answer 15

1. domestic
2. national
3. regional
4. global

Question 16

factors making cement cartel easier

Answer 16

1. uniformity of the product
2. small number of competitors
3. transparency in the market
4. direct contact between competitors

Question 17

what is the e-leniency program?

Answer 17

online initiative to encourage businesses and individuals to come forward with information about cartels

Question 18

what is a whistleblower?

Answer 18

the first person to report cartel, they file a detailed report and supporting evidence to cartel activity

they’re fully exempt from trouble by the law.

Question 19

what is vertical agreement?

Answer 19

agreement between companies operating at different levels of the supply chain

Question 20

what is a horizontal agreement?

Answer 20

agreement between companies that operate at the same level in the supply chain

Question 21

what is rule of reason approach?

Answer 21

each case is assessed individually to decide if a business practice or agreement violates competition laws

Question 22

criteria for assessment of rule of reason

Answer 22

1. effect on competition
2. benefit of agreement to consumers
3. product reputation/safety
4. compliance with agreement of customs

Question 23

3 elements of dominance

Answer 23

1. market share more than 25%
2. the ability to affect the prices of product in market
3. inability of competitors to stop them

Question 24

forms of abuse of dominance

Answer 24

1. any act that leads to complete or partial non-manufacturing or non-distribution for a certain period
2. not engaging in buying or selling a product to someone, which limits their ability to enter or stay in the market
3. acts that limit how a specific product is distributed among vertically connected businesses
4. tie in agreements
5. price discriminations
6. withholding scarce products
7. predatory pricing
8. restricting supplier relations

Question 25

what is a merger?

Answer 25

when 2 or more companies join to form a single entity

Question 26

what is acquisitions?

Answer 26

when one company purchases another

Question 27

what is notification requirements?

Answer 27

notification is required when annual turnover exceeds 100 million egp, must be submitted within 30 days from transaction

Question 28

what is tie-in agreements?

Answer 28

requiring a customer to buy a second product in order to purchase

Question 29

what is price discrimination?

Answer 29

treating buyers differently by offering different prices

Question 30

what is predatory pricing?

Answer 30

selling products at a below-average price to push competitors out of the market

Question 31

what is restricting supplier relations?

Answer 31

imposing conditions on suppliers to prevent them from selling to competitors