Question 1

Which of the following will be regarded as a concerted practice within the meaning of Article 101 TFEU?&#10;A) The conclusion of a franchising contract which has appreciable anti-competitive effect on competition within the internal market.&#10;B) The adoption of a recommendation by a trade association stating that if any of its members fails to adopt target prices recommended by the association, such member will be expelled from the association. This being in circumstances where the expelled member will, as a consequence, be unable to sell its products within the national territory.&#10;C) The participation of managing directors of competing undertakings in a meeting during which the intended pricing policy and other issues relating to the production and distribution of the relevant products are discussed.

Accepted Answer

A concerted practice involves coordination between companies that knowingly substitutes practical cooperation for the risks of competition. Participation in meetings where pricing policies and other competitive issues are discussed can be seen as a form of coordination that restricts competition.

Question 2

One of the following courses of conduct on the part of the dealer is likely to be in breach of Article 101 TFEU. Which is it?&#10;A) A dealer, subsequent to an order issued to him by a manufacturer not to sell to customers in Member States where the prices charged to customers for the relevant product are high as compared to prices in the place where he is established, neither takes any steps which indicate that he intends to comply with the order nor does anything which indicates his intention to ignore it.&#10;B) A dealer, subsequent to an order issued to him by a manufacturer not to sell to customers in Member States where the prices charged to customers for the relevant product are high as compared to prices in the place where he is established, continues selling the relevant products in those Member States.&#10;C) A dealer, subsequent to an order issued to him by a manufacturer not to sell to customers in Member States where the prices charged to customers for the relevant product are high as compared to prices in the place where he is established, complies with the order.

Accepted Answer

Complying with the manufacturer's order not to sell in certain Member States to maintain high prices is likely a breach of Article 101 TFEU, which prohibits agreements that restrict competition within the EU.

Question 3

Which of the following clauses will be regarded under Regulation 330/2010 as a hardcore restriction on competition within the internal market?&#10;A) A clause fixing a minimum resale price for the relevant product&#10;B) A clause fixing a maximum resale price for the relevant product&#10;C) A clause recommending a resale price for the relevant product

Accepted Answer

According to Regulation 330/2010, a clause fixing a minimum resale price for the relevant product will be regarded as a hardcore restriction on competition within the internal market. Such a clause restricts the ability of resellers to compete on price, thereby limiting consumer choice and potentially leading to higher prices. Clauses fixing maximum resale prices or recommending resale prices, on the other hand, may be permissible under certain circumstances.

Question 4

Which of the following statements is correct?&#10;A) The implementation doctrine means that EU competition law applies to a situation where an anti-competitive agreement, decision or concerted practice has been entered into within the territory of the EU and been implemented there.&#10;B) The implementation doctrine means that EU competition law applies where an anti-competitive agreement, decision or concerted practice is implemented within the EU irrespective of where the agreement, decision or concerted practice was entered into.&#10;C) The implementation doctrine means that EU competition law applies to a situation where an anti-competitive agreement, decision or concerted practice has been entered into in the territory of the EU but been implemented outside the territory of the EU.

Accepted Answer

The implementation doctrine is a principle of EU competition law that holds that an anti-competitive agreement, decision, or concerted practice is subject to EU competition law if it is implemented within the EU, regardless of where it was entered into. Therefore, choice B is the correct statement as it accurately describes the implementation doctrine. Choices A and C are incorrect as they misrepresent the principle by suggesting that implementation must occur exclusively within the EU or that implementation outside the EU is covered by the implementation doctrine.

Question 5

Which of the following will be regarded as an undertaking under EU competition law?&#10;A) A lawyer who for a fee offers various legal services&#10;B) A commercial agent&#10;C) A subsidiary of a multinational corporation which has no freedom to determine its course of action on the relevant market and thus must carry out the policy imposed by the parent corporation

Accepted Answer

Under EU competition law, an "undertaking" is any entity engaged in economic activity, regardless of its legal status or the way it is financed. A lawyer offering services for a fee is engaged in economic activity and thus considered an undertaking. A commercial agent and a subsidiary with no independent decision-making power are not considered separate undertakings.

Question 6

What are the main objectives of EU competition law?&#10;A) To maintain the integrated internal market, to enhance consumer welfare and to ensure efficient allocation of resources&#10;B) To protect economic freedom of competitors and to maintain the integrated market&#10;C) To safeguard EU interests and to promote the welfare of consumers

Accepted Answer

The main objectives of EU competition law are to maintain the integrated internal market, to enhance consumer welfare, and to ensure efficient allocation of resources. These objectives are designed to support fair competition among businesses, protect consumers from anti-competitive practices, and promote economic growth within the European Union. The law aims to prevent businesses from engaging in anti-competitive practices such as price-fixing, market sharing, and abuse of dominant market positions, to ensure a level playing field for all competitors. Additionally, EU competition law seeks to promote innovation and the development of new products and services, which ultimately benefits consumers by providing more choices and lower prices.

Deck 22: Introduction to EU Competition Law; and Article 101 TFEU