Competition policy Flashcards
What is Competition Policy?
Policies that seek to ensure
that competition is not distorted in the internal market.
What is Bundling?
Forcing consumers to buying consumers. Fx at McDonalds, they say you can only buy the fries if you buy the burger
What is Predatory pricing?
Lowering the prices to below cost price, to push out competition, and when the competition is out, they raise the price again.
What is a cartel?
Is a group of similar, independent companies which agree (expressly or tacitly) together to fix prices, to limit production or development, to share markets or customers between them
What is Merger Controls?
Rules made by the government to check and approve when companies want to join together. It’s to make sure the merger doesn’t harm competition and is fair for everyone in the market.
What does Abuse of dominant position mean?
Situation where a powerful company exploits its market dominance in ways that harm fair competition. This could involve unfair pricing, limiting production, or blocking competitors
What is Monopoly?
When there is only one company on the market, and they get to set the prices
What is Oligopoly?
When there are only two big companies on the market, and they are battling against each other. This market is also very difficult to get into, for smaller companies
What is State subsidies?
It’s money, tax breaks, or other support to help them grow or overcome challenges.
What is a Lenient system?
If a company involved in an anticompetitive activity, like a cartel, comes forward and reports its own wrongdoing, it may receive reduced penalties or immunity from fines.
What is a Whistle blower?
A worker from inside the company who passes information concerning wrongdoing to the government
What are Forms of abuse?
Bundling, exclusive dealing, predatory pricing and use of loyalty discounts
What are Settlement?
Is an agreement between a company and the European Commission to quickly resolve antitrust issues, promoting fair competition.
What is commitments?
Are promises made by companies to fix competition issues, helping ensure fair market competition.
What are Uncompetitive practices?
Actions that unfairly limit competition, like price-fixing or monopolistic behavior, which harm consumers and businesses
