Legislation Flashcards
What agreements are prohibited under Article 101 of the Treaty?
All agreements between undertakings, decisions by associations of undertakings, and concerted practices that may affect trade and prevent, restrict, or distort competition.
Key examples include fixing prices, limiting production, sharing markets, applying dissimilar conditions, and imposing unrelated supplementary obligations.
What is the consequence of agreements prohibited under Article 101?
They shall be automatically void.
This means they have no legal effect.
Under what conditions can agreements be declared inapplicable according to Article 101(3)?
Agreements that improve production or distribution, promote technical or economic progress, and allow consumers a fair share of benefits without imposing unnecessary restrictions.
They must not eliminate competition in a substantial part of the market.
What is the market share threshold for the exemption under Article 2 of Regulation No. 330/2010?
The supplier’s market share must not exceed 30% and the buyer’s market share must not exceed 30%.
This applies to the relevant market for contract goods or services.
What types of vertical agreements are exempt from the application of Article 101(1) as per Article 2?
Vertical agreements containing vertical restraints.
This includes agreements between an association and its members or suppliers under specific conditions.
True or False: The exemption under Article 2 applies to vertical agreements between competing undertakings.
False.
The exemption does not apply to vertical agreements between competitors.
Fill in the blank: The exemption provided for in Article 2 shall not apply to vertical agreements that restrict the buyer’s ability to determine its _______.
sale price.
Suppliers can impose a maximum sale price or recommend a sale price under certain conditions.
What are hardcore restrictions according to Article 4?
Restrictions that remove the benefit of the block exemption, such as limiting sales territories or customers, and imposing non-compete obligations.
These restrictions can lead to a loss of the exemption for vertical agreements.
List three examples of excluded restrictions under Article 5.
- Non-compete obligations exceeding five years
- Obligations preventing post-termination sales
- Restrictions on selling competing brands in selective distribution systems.
These exclusions limit the applicability of the exemption in vertical agreements.
What is the role of the Commission Regulation (EC) No. 330/2010?
It specifies the application of Article 101(3) of the Treaty to categories of vertical agreements and concerted practices.
It provides clarity on exemptions and conditions for vertical agreements.
What is a selective distribution system?
A distribution system where suppliers select distributors based on specific criteria to ensure that their products are sold in a particular manner.
This system is designed to maintain the quality and reputation of the brand.
What is defined as an ‘agreement’ in this Regulation?
An agreement, a decision of an association of undertakings or a concerted practice.
Define ‘technology transfer agreement’.
A technology rights licensing agreement between two undertakings for the production of contract products or an assignment of technology rights between two undertakings where part of the risk remains with the assignor.
What are ‘competing undertakings’?
Undertakings which compete on the relevant market, including actual competitors and potential competitors.
What is the purpose of Article 2 in this Regulation?
It exempts technology transfer agreements from Article 101(1) of the Treaty under certain conditions.
What conditions must be met for the exemption in Article 2 to apply?
Agreements must not have expired, lapsed, or been declared invalid, and know-how must remain secret.
What is the market-share threshold for competing undertakings under Article 3?
The combined market share must not exceed 20 percent on the relevant market(s).
What is the market-share threshold for non-competing undertakings under Article 3?
The market share of each party must not exceed 30 percent on the relevant market(s).
What are ‘hardcore restrictions’ in the context of this Regulation?
Restrictions that disqualify agreements from exemption, such as price determination restrictions and market allocation.
True or False: The exemption applies to agreements that restrict a party’s ability to determine its prices.
False.
Fill in the blank: The exemption does not apply to obligations that directly or indirectly restrict the licensee’s ability to _______.
exploit its own technology rights.
What are some examples of excluded restrictions under Article 5?
- Obligations on the licensee to grant an exclusive license to the licensor
- Obligations on the licensee not to challenge the validity of intellectual property rights.
What happens if non-competing undertakings become competing undertakings after the agreement is concluded?
The exemption conditions applicable to non-competing undertakings will still apply for the full life of the agreement unless amended.
What is the significance of know-how remaining secret under Article 2?
The exemption applies for as long as the know-how remains secret; if disclosed, the exemption applies only for the duration of the agreement.
What does Article 4 state about limiting output?
Limiting output is generally prohibited, except for specific limitations on the output of contract products.
What is required for provisions related to the purchase of products by the licensee to be exempt?
They must be directly related to the production or sale of the contract products.
True or False: The exemption applies to restrictions on active sales by a licensee into an exclusive territory.
False.
