EU Competition Law Flashcards
Which article prohibits anti-competitive agreements?
A101
Defining the relevant market is a necessary pre-condition of any judgment- case
Italian Flat Glass
Which instrument ensures the enforcement of A101 and A102?
Regulation 1/2003- a system of cooperation between Commission, national courts and national competition authorities
What are the three elements of A101 breach? clue A101(1)
-agreement between undertakings and concerted practices
-which may affect trade between MSs
-which have as their object or effect the restriction of competition within the internal market
A101- Undertakings- interpreted broadly- case
Hofner and Elser- natural and legal persons engaged in commercial activity
A101- even a non-binding recommendation may be caught
UAZ
What was considered in the case of Dyestuffs?
the term concerted practices- outer limits of which have proved difficult to identify
How does Woodpulp differ from Dyestuffs?
no evidence of communication or parallel pricing- normal oligopolistic market
Why is the reference to parallel behaviour in oligopolistic markets problematic?
It is difficult to determine with any certainty what are the ‘normal market conditions’- Woodpulp
What provided an incentive for cartels to admit their participation?
The Leniency Notice 2006
What are horizontal agreements?
Between manufacturers
or
Between retailers
Parties operating on the same level
Tesco, Asda, Sainsbury’s
What are vertical agreements?
Parties at different levels
Between a manufacturer and distributor
Tesco and milk producer
Does A101(1) apply to vertical agreements? + case
Yes, Consten [1966]
Which type of agreements are easier to justify- horizontal or vertical? + any exemptions
Vertical;
Block exemption Reg. 330/2010
What is the test for ‘affecting trade’? What are some of the relevant factors considered?+ case
possible to foresee with a sufficient degree of probability on the basis of set objective factors that the agreement in question may have influence direct or indirect, actual or potential on the pattern of trade
Case: STM
Even agreements operating in one MS may be caught by A101 (1)- CASE
Vacuum Interrupters Ltd [1977]- 2 UK switchgear companies
Small undertakings cannot affect trade- what percentage or annual turnover is not sufficient?
As per a Commission Notice 2004
If under 5% or less market share or less than 40 mil turnover
Agreements which have as their object a restriction of competition cannot benefit from de minimis principle
Expedia Inc
De minimis principle - horizontal and vertical- percentage of market share
H- 10%
V-15%
Where can the legal exemptions be found? + case law
A101 (3)
ACEC/Berliet- improving production of goods
CECED- agreements necessary to achieve the benefits
What are the 3 elements of a breach of A102?
have a dominant position
Abuse
Affecting trade between MSs
Dominant position- case law
United Brands Co- a position of economic strength enables the undertaking to prevent competition
What are the 3 aspects of the relevant market? (1 is rarely used)
product, geography, temporal
What is the test for cross-elasticity of demand? And what is that relevant for?
Relevant for product market
Test: Would a consumer be willing to switch his demand from one product to another?
Oranges to tangerines
