L10: Competition Law (Cartels) Flashcards
What is the purpose of the competition policy?
The purpose of competition policy is to guarantee that the market is regulated in order to control the excess of the free market, and to ensure that distinct sellers can compete with each other.The EU is one internal market, which is why they have integrated competition policy. The rules are designed to prevent price fixing and abuse the market power.
what are the 4 areas when it comes to competition policies?
cartels, abuse of dominant position, merger control, and state aid.
what is stated about cartels and which case?
It is illegal to form an agreement between undertakings and concerted parties that can be an object or effect competition between MS within the common market. An example is the Dyestuff and Sugar Cartel Case.
name the prohibitions about cartels?
it is illegal to fix pricing, limit or control production, market sharing, applying dissimilar conditions to equivalent transaction, and unconnected supplementary obligations AKA Tying.
what are the exception of cartels?
which are the “Minimis Notice”, where market share is below 10% and a horizontal agreement, which is between competitors, or where market share is below 15% and a vertical agreement, which is between non-competitors.
what is another accretion of cartels?
agreements or concerted practices that contribute to improving the production or distribution of goods or that promote technical or economic progress and allow consumers to obtain a fair share of the benefit. Whilst the agreements must be indispensable and cannot lead to the elimination of competitors in the market.
what is leniency?
is immunity or reduced penalties in exchange for information. There will also be an inspection, before and after.
