Summary: 8. Competition Law Ii

Read the summary and the most important questions on 8. Competition Law II

• 1 Prohibition of abusing a dominant position

• 1.1 Elements of an abuse

• Take a look at art. 101 TFEU where criteria are met. What kind of examples does this article give?

  Lid a tm d.

• What are the five elements of an abuse according to art. 101 TFEU?

  - undertaking
  - dominant position
  - within the internal market
  - abuse
  - affecting trade between MS

• 1.1.2 The term dominant position

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• According to ECJ case law, an undertaking has a 'dominant position' according to art. 102 TFEU when:

  1. It is in position to prevent effective competition on the relevant market
     
  2. in its market behavior it can behave to extent independently of its market partners
  3. concerns both supply and demand market

• What are the requirements for examine a dominant position as identification of relevant market?

  • Product market
    
  • Geographic market

• ECJ case 27/76, judgement of 14 Feb 1978, United Brands. What are the facts of the case?

  • United Brands (UBC) as world-leading producer of bananas (“Chiquita”)
  • instruction to sellers and ripening firms not to sell UBC- bananas when they are still green
    
  • application of unequal prices for the same quality vis-à-vis sales partners
    
  • COM: violation of Art 82 TEEC [now: 102 TFEU]
    

• ECJ case 27/76, judgement of 14 Feb 1978, United Brands. What was the decision of the ECJ?

  • Ad product market: 

  can be singled out by such special features distinguishing it from other fruits that it is only to a limited extent interchangeable with them and is only exposed to their competition in a way that is hardly perceptible
  

  • Ad geographic market:
    

  comprises areas in which the conditions of competition
  are sufficiently homogeneous for all undertakings concerned

• What is the demand substitutability for the product market for determination of the relevant market?

  • Substitutability in the view of the buyers
    
  • assessment:
  • according to physical, functional and economic charasteristics
  • applying so-called SSNIP test: cross-price elasticity. 

• What is the demand substitutability for the geographic market for determination of the relevant market?

  • Area where the conditions of completion are sufficiently homogeneous
    
  • core question: To which buyers in which ares would demand shift in case of an increase in price?
  • relevant factors: legal constraints; high transport costs' consumer preferences

• What is the supply substitutability?

  • Possibility of conversion of production or of short-term market access without relevant costs
    
  • entry investment (sunk costs)

• 1.1.3 Types of abuse

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• What is exclusionary abuse?

  Dominant position directly used against competitors. Pushing back competitors by means of effective competition?