Unit 9 Flashcards
Define ABUSIVE CONDUCT state its assumptions and consequences
Any agreement, decision or concerned practice which produce or may have the effect of preventing or distorting competition in all or part of the national market
INTENTIONALITY IS IRRELEVANT
ASSUMPTION:
1. An agreement:
- directly or inderectly fix prices or other commercial conditions
- limit or control the production or distribution
-Share the markets
-Share supply sources
- Restriction of competition
- agreemtns that can restrict competition (regardless of whether or not it had an impact) - Total or partial aggevyation of the national market
CONSEQUENCES:
- agreements prohibited have to be null or void (reversivìng the effects it had on the market)
- Possible sanctions by competent bodies
Define ABUSE OF DOMINNT POSITION what it consists of and the exeptions
Abusive exploitation by one or more companies of their position of dominance in all or part of the national market is prohibited
consists of:
-imposition of unfair prices or commercial conditions
-unjustified limitations of production or distribution
-unjustified refusal to meet the demands
EXEPTIONS:
- behaviours resulting from the application of a legal rule
-behaviours of “minor importance”:
(<10% of the market share is affected, exept is the abuse consists of fixing prices or limiting prodution or sales)
-Public interest, authorized by the CNMC (national commissionof markets and competition)
state and describe the controlled acts
ECONOMIC CONCENTRATION
1- Operations involving a stable change in the control structure of one or several companies
(mergers, acquisitions..)
2-The concentration can hinder the maintenance of effectibe competition in the market
area of application:
Market share > 30%, exeption made for operations of little economic significance (acquired asset turnover of <€10mln) and <50% of the market share
PUBLIC AID
European General Rule:
Prohibition of public aid for being incompatible with the competitive market economy system
(member state must inform the EU of the establishment of aid to companies)
Exeptions:
-Aid of social nature or to repair damages caused by natural disasters
-Aid to promote the economic development of certain regions or to promote the implementation of a project of common european interests.
-Aid of little quantitative importance (<€200’000 during any period of three fiscal years)
What are the Supervisory Bodies?
If the affected market is Spain–> CNMC
if the affected market is Europe –> European Commission
Describe the Sanctions Regime
Start fo the sanctioning procedure:
by the CNMC ex officio or by complaint
Sanctions: of administrative nature (CNMC): fines and the possibility of imposing obligations
Monetary Fine: up to a maximum of 10% of the business volume depending on severity
Leniency Policy: a person (individual or legal entity) may be exempted from paying the fine that may correspond to it when it provides evidences, substantive for the investigation of the existence of a cartel
Define Unfair Competition and describe its scope of application
“excess in the aggressiveness of the competition”
Scope of application:
- Objective Scope:
when the acts are carried out in the market, before during or after a commercial operation (regardless if it concluded)
-Subjective scope: it applies to any person or legal entity in the market
Describe the acts directed against a specific competitor
1-ACTS OF DENIGRATION
manifestation or information that may undermine the reputation of a competitor
(exception made if the information is true)
In particular, forbidden statements about nationality beliefs, ideology, or the private life of the affected party.
2-ACTS OF PUBLIC COMPARISON
public comparison is not allowed, unless:
comparable goods and services:
-objectively as long as essential, pertinent and verifiable characteristics are compared (including price)
-it can be an explicit or implicit allusion to the competitor
-contrary, all other comparisons are prohibited
3-IMITATION ACTS
even in the case of non-protected distinctive signs, acts of imitation that average consumer may associate to the provision of others
4-BREACH OF SECRETS
discosure or exploitation, without authorization of its owner, of industrial secrets or of any other kind of business secret to which legitimate access has been had but with a duty of confidentiality
5-INDUCTION OF BREACH OF CONTRACT
induction to employees, suppliers, customers and other obligations to breach the basic contractual duties they have contracted with competitors
Describe the Acts contrary to the proper functioning of the market in general
1-ACTS OF DECEPTION
any conduct that contains false information that, while being truthful, due to its content or presentation induces or may alter economic behaviour
2-ACTS OF CONFUSION
any behaviour that is suitable to create confusion with the activity, benefits or the foreign establishment
3-MISLEADING OMISSIONS
omissions or concealment of information necessary for the addresee to make or be able to make a decision regarding their economic behaviour with the knowledge of the facts
4-AGGRESSIVE PRACTICES
behaviour that is likely to be a significantly dimished, through harassment, coercion, including the use of force or undue influence the freedom of choice or conduct of the recipe
5-RULE VIOLATION
prevail in the market of a significant competitive advantage. acquired through violation of law
6-SALE AT A LOSS
prevail in the market of a significant competitive advantage. acquired through violation of law
7-DISCRIMINATION AND ECONOMIC DEPENDENCE
exploitation by a company of the situation of economic dependence in which client companies or suppliers do not have an equivalent alternative
8-ILLICIT ADVERTISING
advertising considered illegal
Describe Misleading behaviour
1- CONFUSION FOR CONSUMERS
2- SHOW ADHERENCE TO CODE OF CONDUCT WHEN IT IS NOT TRUE
3- MISLEADING PROMOTIONS AND BAIT ADVERTISING
4- MISLEADING PRACTICES ABOUT THE NATURE OR PROPERTIES OF GOODS AND SERVICES
5-PYRAMID SCHEME
6- COVERT COMMERCIAL PRACTICES, APPEARING TO BE INFORMATIVE IN THE MEDIA
Describe Aggressive Behaviours
1- Coercive and harassing process
2- Agressive practices in relation to minors
