competition law Flashcards
prohibition of cartels
art 101 TFEU
the main concern is that a group of undertakings will conspire or collude and will collectively carry the same threat to competition as a monopolist
conditions of art 101(1) TFEU
- undertaking/association of undertakings
- collusion: agreement, concerted practices, decisions
- having as its object or effect the restriction of competition
- effect on trade between MS
- appreciability
- undertaking
every entity engaged in an economic activity, regardless of the legal status and the way in which it’s financed
- agreement
- concurrence of wills
- bindingness not required
- form irrelevant
- market conduct as object
- concerted practices
A form of coordination between undertakings without a properly conducted agreement.
- restriction of competition
anti competitive impact of collusive behavior
- any restriction of the individual economic freedom of action of an undertaking on the market
- effect on trade between MS
- direct or indirect, actual or potential
- generally unproblematic
- appreciability
de minimis
Collusive behaviour of minor importance of both restriction and effect on trade.
- <10% horizontal
- <15% vertical
restriction of competition by obejct
agreements which by their very nature cannot objectively and reasonably be assumed to have any other purpose than to restrict competition
restriction of competition by effect
- most cases!
- if an agreement must at least be likely to have negative effect on competition - it reduces the parties’ decision making independence over factors such as prices due to obligation contained in the agreement which directly regulates the parties’ conduct
exemption conditions for cartels 101(3)
- improve the production or distribution of goods or promote technical/economic progress +
- ensure that consumers receive a fair share of the resulting benefits +
- not contain indespensable restrictions -
- must not substantially eliminate competition -
abuse of dominance
art 102
the main concern is that an undertaking will exploit its power over the market and act anti-competitively
conditions of art 102
- undertaking
- dominant position
- abuse
- effect on trade between MS
- dominant position
position of economic strength which enables an undertaking to prevent effective competition being maintained on the relevant market by affording it the power to behave independently of its competitors, customers and consumers
exploitative abuse
monopoly gains benefits at the expense of customers (prices increased above the competitive level)
exclusionary abuse
actually or potentially, foreclose the market to existing competitors or new
entrants having an adverse impact on consumer welfare
merger control
maintaining a functioning market structure through precautionary control
why is state aid law needed?
- state subsidies can be harmful in themselves (intervention in normal functioning of the market, e.g. artificially keeping alive companies)
- in the EU, MS subsidies can hamper the functioning of the internal market
state aid prohibition conditions
Art 107 (1)
1. beneficiary - undertaking
2. state origin
3. advantage
4. selectivity
5. distortion of competition and aid affects trade between MS
