LEC 4 questins

Question 1

Under Article 102 which of the following cases provides a definition of “dominance”?

Answer 1

united brands

Question 2

which of these is prohibited under Article 102 TFEU

Answer 2

Abuse of a dominant position

Question 3

that does Article 101 of the TfEU seek to prohibit?

Answer 3

Anti competitive practices

Question 4

that concept is key to establishing the relevant product market?

Answer 4

Substitutability of products.

Question 5

The “de minimis” principle means that

Answer 5

certain agreements of minor importance are not capture by competition law

Question 6

For a breach of Article 101 or Article 102 to be found, trade between Member States may be effected:

Answer 6

actually or potentially

Question 7

The fines for breach of Article 101 and 102 are

Answer 7

10% of group turnover or 1 million euro, whichever is greater

Question 8

elements if Article 101(1)

Answer 8

an agreement between undertakings or within an association of undertakings or a concept practice
- which may affect trade between member states
- with the objective or effect of preventing restricting or distorting competition
- anti-competitive behaviour

Question 9

what is “undertakings”

Answer 9

“any entity engaged in economic activity.” Hofner and Elser (Case 41/90).

Undertaking has been interpreted widely. It includes any legal or natural person engaged in some form of commercial activity. As well as companies operating for profit, it has also covered

charities and NGOs
Partnerships and individuals
Trade associations
Co-operatives

Question 10

what is block exemption

Answer 10

Block exemptions are devised to create more certainty in the business community as to the potential factors within an industry which might render an agreement anti-competitive.

Question 11

Article 102 TFEU

Answer 11

Any abuse by one or more undertakings of a dominant position within the internal market or in a substantial part of it shall be prohibited as incompatible with the internal market in so far as it may affect trade between Member States. Such abuse may, in particular, consist in:

a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;

b) limiting production, markets or technical development to the prejudice of consumers;

c) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;

d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

Question 12

article 102 - abuse a dominant position

Answer 12

• Article 102 seeks to control market power.
• Does not prohibit dominance per se, only abuse of it.
• A company abusing a position of dominance is likely to reduce the effectiveness of competition, be bad for consumers and be bad for smaller firms in the market.

Question 13

what is market of dominance?

Answer 13

“Position of economic strength which allows an undertaking to prevent effective competition in the relevant market.”

Question 14

abuse of a dominant position

Answer 14

An undertaking with 100% market share will not be in breach of Article 102, so long as it does not “abuse” its position.

Question 15

abuse - Art 102 list of examples:

Answer 15

a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;

b) limiting production, markets or technical development to the prejudice of consumers;

c) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;

d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

Question 16

exemptions article 102

Answer 16

There are no exemptions to Article 102. If a company is found:

• to have a dominant position within the EU or a substantial part of it;
• Which it is has abused
• And that abuse is capable of affecting trade between member states

This will be illegal under article 102 without exception.

Question 17

consequences:

Answer 17

Non-financial: Commission, Competition and Markets Authority of the Country, or individuals could bring legal action.

Financial: the Commission may fine any undertaking guilty of a breach of Article 101 up to 10% of worldwide turnover.