Pricing Strategies Flashcards
What does Article 102 TFEU prohibit?
It prohibits the abuse of a dominant market position within the internal market.
True or False: Article 102 TFEU applies to all companies regardless of their market position.
False
Fill in the blank: Article 102 TFEU is part of the _____ Treaty.
Treaty on the Functioning of the European Union
What are the two main types of abuses under Article 102 TFEU?
Exclusionary abuses and exploitative abuses.
Multiple Choice: Which of the following is an example of exclusionary abuse?
Refusing to supply a competitor.
What is the significance of the term ‘dominant position’ in Article 102 TFEU?
It refers to a company’s ability to act independently of competitors and customers.
True or False: Discounting practices can be considered an abuse under Article 102 TFEU.
True
What type of discounting is often scrutinized under Article 102 TFEU?
Predatory pricing.
Fill in the blank: Article 102 TFEU is enforced by the _____ and national competition authorities.
European Commission
What is the primary goal of Article 102 TFEU?
To promote fair competition and prevent market abuse.
Multiple Choice: Which of the following can be a consequence of violating Article 102 TFEU?
Fines imposed by the European Commission.
What is a common defense used by companies accused of abuse under Article 102 TFEU?
Proving that their conduct is objectively justified.
True or False: Discounts offered to loyal customers can always be considered abusive under Article 102 TFEU.
False
What is the ‘as-efficient competitor’ test in the context of Article 102 TFEU?
A test determining whether a discount strategy harms equally efficient competitors.
Fill in the blank: The European Commission uses _____ when assessing discounting practices under Article 102 TFEU.
economic analysis
What does the term ‘loyalty discounts’ refer to?
Discounts offered to customers based on their loyalty or purchasing history.
Multiple Choice: Which of the following is NOT a factor considered in assessing discounting practices?
The company’s overall market share in unrelated markets.
What is a potential benefit of offering discounts for companies?
Increased market share and customer retention.
True or False: Article 102 TFEU only applies to discounts offered in the EU.
True
What role does the Court of Justice of the European Union (CJEU) play in the context of Article 102 TFEU?
It provides judicial interpretation and rulings on cases related to the article.
Fill in the blank: Article 102 TFEU is part of the _____ law framework in the EU.
competition
What is the difference between exploitative and exclusionary abuses?
Exploitative abuses involve unfair pricing, while exclusionary abuses involve practices that exclude competitors.
Multiple Choice: Which of the following practices could be considered exploitative under Article 102 TFEU?
Charging excessively high prices.
True or False: Article 102 TFEU applies only to companies based in the EU.
False
What must be demonstrated to prove a violation of Article 102 TFEU?
That the company holds a dominant position and has abused it.
Fill in the blank: The concept of ‘dominance’ under Article 102 TFEU is typically assessed through _____ analysis.
market
