Question 1

Which of the following concentrations can be classified as a conglomerate concentration?&#10;A) A concentration between undertakings which are competing in the same product and geographic market and at the same level of production/distribution.&#10;B) A concentration between undertakings which are not competing with each other in any product market, and which does not result in any vertical integration.&#10;C) A concentration between undertakings operating at different levels of the economy (e.g. between a manufacturer and its supplier of raw material)

Accepted Answer

A conglomerate concentration involves a merger or acquisition between firms that are not direct competitors and do not operate in the same product market. This option B describes such a concentration. Option A describes a horizontal concentration, while option C describes a vertical concentration.

Question 2

Which of a, b, and c below is correct? The Commission will be likely to declare a proposed concentration as compatible with the internal market if:&#10;A) The intended concentration strengthens a dominant position of one of the participating undertakings on the relevant market&#10;B) The proposed concentration takes place in the context of a non-collusive oligopoly, and does not lead to a single or joint dominance, but, nevertheless, produces effects which significantly impede effective competition in the internal market or a substantial part of it&#10;C) The proposed concentration takes place in the context of a non-collusive oligopoly, does not lead to a single or joint dominance, and will not produces effects which significantly impede effective competition in the internal market or a substantial part of it

Accepted Answer

The Commission will be likely to declare a proposed concentration as compatible with the internal market if the proposed concentration takes place in the context of a non-collusive oligopoly, does not lead to a single or joint dominance, and will not produce effects which significantly impede effective competition in the internal market or a substantial part of it. Option A is incorrect as the intended concentration strengthening a dominant position of one participant would not be favorable for competition. Option B is also incorrect as it would significantly impede effective competition in the market.

Question 3

Which of a, b, and c below is correct? Under the MR, the creation of any concentration with an EU dimension needs to:&#10;A) Be notified to the Commission only&#10;B) Be notified only to the relevant national competition authorities of the Member State/s concerned&#10;C) Be notified to both the Commission and the relevant national competition authorities of the Member State/s concerned

Accepted Answer

Under the EU Merger Regulation (MR), the creation of any concentration with an EU dimension needs to be notified to the European Commission only, not to the national competition authorities of the Member States. This centralizes the review of significant mergers at the EU level to ensure a uniform application of competition law across the EU.

Question 4

Which of a, b, and c below is correct? The SSNIP test is used to&#10;A) Define the relevant market&#10;B) Assess whether an undertaking has abused its dominant position on the relevant market&#10;C) Decide whether an undertaking is in a position of

Accepted Answer

The SSNIP test is used to define the relevant market by analyzing whether a hypothetical monopolist could raise prices above a competitive level for a small but significant and non-transitory period of time without losing too many customers to substitute products outside of the relevant market. It is not used to assess abuse of dominant position or determine if an undertaking is in a position of strength.

Question 5

Which of a, b, and c below is correct? Article 102 TFEU prohibits:&#10;A) An undertaking from acquiring a monopolistic position on the relevant market&#10;B) An undertaking from having a dominant position on the relevant market&#10;C) An undertaking from abusing its dominant position on the relevant market

Accepted Answer

Article 102 TFEU prohibits an undertaking from abusing its dominant position on the relevant market. A dominant position in itself is not illegal, but abusing it to distort competition is prohibited.

Question 6

Which of the following abuses by an undertaking in a dominant position on the relevant market will be regarded as an exclusionary abuse under Article 102 TFEU?&#10;A) Charging its customers excessively high prices&#10;B) Charging different customers different prices for the same product without any objective justification such as differences in transport costs, taxation, customs duties, etc.&#10;C) Charging its customers prices which are below the cost of production of the relevant product

Accepted Answer

Charging prices below the cost of production can be considered predatory pricing, an exclusionary abuse intended to eliminate competitors and strengthen the dominant position.

Deck 23: Article 102TFEU; Merger Control