Competion law - TFEU page

16 important questions on Competion law - TFEU page

EU competition rules objectives? 

Prevent undertaking hindering competition in internal market, and EU competition rules exists next to National competition rules

Horizontal and Vertical cartels? what is difference? 

Horizontal cartel between producers and Vertical between supplier and distributors. 
Both Horizontal and Vertical cartels prohibited by art.101 TFEU
Not: one undertaking cannot infringe art.101 TFEU

Agreements between undertaking, what forms? 

Explicit and Tacit agreement (not written down, can be result of action by undertakings) 
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Decisions also not allowed (next to agreements) specify?

Legally binding decisions by association on behalf of members
Recommandations by association (price setting) in practice determines conduct of large number of members of association.
                

 

Concerted practices, what is it?

Undertakings pursue uniform policy without any agreement of decision
Mysterious meetings during which policy is discussed

Not Concerted practice in truly Oligopolistic market is allowed- follow price leader (market structure is reason -dyestuff market kleurstoffen) 

Courage case (exclusive beer supply contract) and effects?

art 101.2 any agreements or decisions prohibited to this art. shall automatically void - Do not exist
Direct effect art.101.1 - claim damages under art. 101 

Eco Swiss case vs Benetton B

B terminated "Market sharing agreement" before end date 3 years, arbitration awarded payment of damages. B claimed nullity of agreement under art 101.2 - agreement did not exist and thus arbitration must be annulled by court

Horizontal agreement vs Vertical agreement?

Horizontal agreement between competitors - producers
Vertical agreement -between undertaking at different stages of production and commercialisation process - manufacturer and distributor

Vertical agreement vs Horizontal agreement difference in approach?

Vertical agreements there is an incentive to prevent exercise market power by other - self-policing character of vertical restraints. STEP : Examine totality of economic situation of vertical relation and incentives before concluding the existence of an agreement. 
Horizontal agreement - step not necessary as it's in interest of competitors to compete and increase prices and market share 

Agreement concept includes Gentlemen agreement and Tacit agreement, what is difference 

Gentlemen agreement is non-binding agreement Tacit agreement is not explicit agreement in words or  actions, statements

Concerted practice, what is it? 

Pursue uniform price policy with our agreement or decision. 
apparently Unilateral conduct and pre-existing vertical agreement, degree of collusion - conspiracy (mysterious meeting) 

Oligopolistic market, what is it?

Few major players, one price leader, transparency to consumers, differentiated or homogeneous products, high barrier to enter market
ECJ not convoked of oligopoly with dyestuff market - divided in 5 national markets and not one undertaking took initiate to increase price

Agreement has object to be anti-competitive and agreement has effect to be anti-competitive - difference?

If agreement has object to be anti-competitive (Grundig Consten) no need to investigate effect of anti-competitive behaviour

Anti-compete obligation and Exclusive purchase contracts do not distort competition, in which cases it does?

If anti-competive measures go beyond max 5 years or network of exclusive purchase agreements Beer tie = anticompetitive because competitors cannot enter market & agreement X & Y have seal-off effect by totality of agreements

May affect trade between Member states - meaning? 

Grundig Consten case - the agreement is able to constitute potential treat direct or indirect, actual or potential, to freedom of trade between Members states and might harm attainment of single-market 

VHC case Dutch cement dealer association - issue? 

Body of decisions make it difficult for foreign parties to enter Dutch cement market. Fines under National competition law and also under EU competition law

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