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EU Competition Law Fundamentals
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1
Question
What is the primary objective of competition law?
Answer
To protect competition in the market to enhance consumer welfare through low prices, high quality, variety, and innovation
2
Question
How does competition law achieve its aim of protecting market competition?
Answer
By prohibiting anticompetitive agreements, abuse of dominant position, and anticompetitive mergers
3
Question
What are the three pillars of EU competition law?
Answer
Article 101 TFEU (anticompetitive agreements), Article 102 TFEU (abuse of dominance), and EU Merger Regulation (anticompetitive mergers)
4
Question
What does Article 101 TFEU primarily prohibit?
Answer
Agreements between undertakings that prevent, restrict, or distort competition within the internal market
5
Question
What is the jurisdictional criterion for applying EU competition law under Article 101?
Answer
The agreement must be capable of affecting trade between Member States
6
Question
When does national competition law apply instead of EU law?
Answer
When business conduct only affects trade within one Member State
7
Question
What defines an 'undertaking' in EU competition law?
Answer
Any entity engaged in economic activity by offering goods or services on the market
8
Question
Why is a public primary school not considered an undertaking under EU law?
Answer
It does not engage in economic activity by offering goods or services on the market
9
Question
What constitutes an 'agreement' under Article 101 TFEU?
Answer
A concurrence of wills between at least two parties, regardless of form, expressing their intention
10
Question
Give examples of forms that agreements can take under Article 101?
Answer
Formal contracts, gentlemen's agreements, simple understandings, or settlements
11
Question
What distinguishes horizontal agreements from vertical ones?
Answer
Horizontal: between competitors at the same level; vertical: between entities at different production levels
12
Question
Why are restrictions by object treated differently from those by effect?
Answer
Object restrictions are per se illegal without proving effects; effect requires proof of actual harm
13
Question
What is the essential legal criterion for a restriction by object?
Answer
Coordination that reveals a sufficient degree of harm to competition in itself
14
Question
Why do enforcement agencies focus more on restrictions by object?
Answer
They are easier to prove and save public resources compared to effects analysis
15
Question
What is price fixing in horizontal agreements?
Answer
Competitors agreeing on purchase or selling prices or other trading conditions
16
Question
Why is price fixing harmful to consumers?
Answer
It eliminates price competition, leading to higher prices than in a competitive market
17
Question
How can competition authorities prove a secret price-fixing agreement?
Answer
Evidence like a single meeting followed by parallel price increases suffices
18
Question
What is output restriction in anticompetitive agreements?
Answer
Competitors agreeing to limit or control production levels
19
Question
How does output restriction affect market prices and availability?
Answer
It decreases product availability, driving up prices above competitive levels
20
Question
What is market allocation in horizontal cartels?
Answer
Competitors dividing geographic markets and agreeing not to compete in each other's territories
21
Question
What is customer allocation among competitors?
Answer
Competitors dividing customers and agreeing not to solicit each other's customers
22
Question
Why is market or customer allocation bad for competition?
Answer
It prevents competition, reducing consumer choice and increasing prices
23
Question
What is bid-rigging in the context of tenders?
Answer
Competitors pre-arranging who wins a bid by submitting high bids or stepping back
24
Question
How does bid-rigging harm buyers in public tenders?
Answer
It eliminates true competition, resulting in higher prices or lower quality for buyers
25
Question
What are hard-core cartels under competition law?
Answer
Agreements involving price fixing, output limitation, market sharing, or bid-rigging
26
Question
Why are cartels considered the 'supreme evil' of antitrust law?
Answer
They directly eliminate competition among rivals, harming consumers most severely
27
Question
What is resale price maintenance in vertical agreements?
Answer
A supplier dictating the resale price to distributors, restricting their pricing freedom
28
Question
Why is an export ban considered a restriction by object?
Answer
It limits market access and cross-border trade, distorting competition
29
Question
What economic benefits arise from protecting competition?
Answer
Low prices, high output, product variety, high quality, and innovation
30
Question
Beyond economics, what other benefits does competition provide?
Answer
Freedom of opportunity and support for democracy