Question: What Does Article 102 Prohibit?

What is exploitative abuse?

Exploitative abuses under EU competition law In particular, Article 102 TFEU provides that an abuse may consist of “directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions,” for example, through excessively high prices..

What is an undertaking competition law?

For the purpose of EU antitrust law, any entity engaged in an economic activity, that is an activity consisting in offering goods or services on a given market, regardless of its legal status and the way in which it is financed, is considered an undertaking.

Is horizontal price fixing illegal?

Horizontal price-fixing All such agreements are per se illegal under United States antitrust law; that is, the court will assume that any such agreement is anticompetitive and will not hear arguments to the effect that the agreement actually enhances quality, competition, or consumer welfare in a particular case.

Which of the following is an example of abuse of dominant position?

A company can restrict competition if it is in a position of strength on a given market. A dominant position is not in itself anti-competitive, but if the company exploits this position to eliminate competition, it is considered to have abused it. Examples include: charging unreasonably high prices.

What is market dominance strategy?

Market dominance strategies are marketing strategies which classify your business by reference to your market share or dominance of an industry. In defining market dominance, you must see to what extent your offerings control a product category in a given geographic area.

Is bid rigging illegal?

Whenever business contracts are awarded by means of soliciting competitive bids, coordination among bidders undermines the bidding process and can be illegal. Bid rigging can take many forms, but one frequent form is when competitors agree in advance which firm will win the bid.

What is the difference between vertical and horizontal restraints?

A vertical restraint is an agreement undertaken at different levels of production, distribution, or supply. … This is different from a horizontal restraint, which is an agreement between competitors at the same level of production, distribution, or supply.

What is abuse of a dominant market position?

Abuse of dominance is unilateral conduct using dominant market power (or a dominant position) to damage market competition and ultimately welfare.

What is a horizontal agreement?

Horizontal agreements are restrictive agreements between competitors that operate at the same level of the production/distribution chain. … The most significant and common types of anti-competitive horizontal agreements include price fixing, bid-rigging, market allocation/sharing and refusal to deal (group boycotts).

What is dominance abuse?

Abuse of a dominant position occurs when a dominant firm in a market, or a dominant group of firms, engages in conduct that is intended to eliminate or discipline a competitor or to deter future entry by new competitors, with the result that competition is prevented or lessened substantially.

What is a competition?

1 : the act or process of competing : rivalry: such as. a : the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms contractors in competition for the contract to build the new school.

What does Article 101 Prohibit?

Article 101 prohibits agreements that have as their object or effect the restriction, prevention or distortion of competition within the EU and which have an effect on trade between EU member states. … Guidance on the enforcement of EU competition law under Regulation 1/2003 is also provided.

What is the primary indicator of dominance in the relevant market?

Relative size of market shares Although a company’s market share may be a good indication of dominance, a high market share does not necessarily mean that a company is dominant. It is necessary to consider the position of other companies active in the relevant market and how market shares have evolved over time.

Who enforces EU competition law?

Under this Article, the European Commission is charged with the duty of ensuring the application of Articles 101 and 102 TFEU and of investigating suspected infringements of these Articles. The European Commission and national competition authorities have wide on-site investigation powers.

What is an undertaking under Article 102 of the Treaty on the Functioning of the European Union?

Article 102 of the Treaty on the Functioning of the European Union (formerly Article 82 of the Treaty establishing the European Community) is aimed at preventing undertakings who hold a dominant position in a market from abusing that position. … It is the second key provision, after Article 101, in TFEU competition law.

What is an undertaking?

An undertaking is “a promise given by one party to the Court, frequently of mandatory nature and relating to an obligation to the other party in proceedings.” Undertakings are a legally binding promise which carry severe consequences if breached.