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EU EXAM - defences to Art 101(1)
EU EXAM - defences to Art 101(1)
17
Law
Undergraduate 1
02/13/2012

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Cards

Term
What are the two principal defences to Article 101(1)
Definition
a) The de minimis defence
b) the applicati9on of Article 101(3)
Term
If an agreement/decision infringes Art101(1), what can an undertaking do to prevent it from being void under Art101(2)
Definition
Prove that either:
a) the de minimis defence applies
b) it is exempt under Art101(3)
Term
The de minimis defence
Definition
If the agreement does not have an appreciable effect on, either, competition or inter-state trade
Term
In what case was the de minimis defence first introduced?
Definition
Volk v Veraecke [1969]
Term
Volk v Veraecke [1969]
Definition
INTRODUCED DE MINIMIS DEFENCE
Washing machine manufacturer granted an exclusive distributorship to another undertaking, and guaranteed it absolute territorial protection against parallel imports.
The manufacturer's share of the washing machine market = 0.2%of Gr & 0.08% of EU = negligable
CJ held that an agreement falls outside of the 101(1) prohibition if it only has an insignificant effect on the markets - taking into account the weak position which the persons concerned have on the market of the product in question.
Term
What is the applicability of the de minimis defence?
Definition
It applies to both horizontal and vertical agreements. It also applies to both situations where anti-competitiveness is the object or the effect
Term
How does the Commission / NCA go about determining whether an agreement has an insignificant effect?
Definition
They must first establish what the relevant market is.
They must then establish what the market share is.
For horizontal agreements, market share must = less than 10%
For vertical agreements, market share must = less than 15%
Term
For horizontal agreements, what must the aggregate market share of the undertakings be less than, in order for the de minimis defence to work?
Definition
10%
Term
For vertical agreements, what must the aggregate market share of the undertakings be less than in order for the de minimis defence to operate?
Definition
15%
Term
In which document does the Commission set out the maximum aggregate market shares undertakings can have, in order for their agreements to fall within the de minimis defence?
Definition
Notice on Agreements of Minor Importance.
Term
In Notice of Agreements of Minor Importance, what is the maximum aggregate market share undertakings in a vertical agreement/decision can have, if they want to rely on the de minimis defence?
Definition
15%
Term
In Notice of Agreements of Minor Importance, what is the maximum aggregate market share undertakings in a horizontal agreement/decision can have, if they want to rely on the de minimis defence?
Definition
10%
Term
Why might undertakings who fall within the market-share guidelines set out in Notice on Agreements of Minor Importance, still have a problem?
Definition
Because notices issued by the Commission are soft law, therefore, they are not legally binding. Therefore, even though the market-share of undertakings may fall within the figures set out in the Notice, their agreement may still be held to breach Art 101(1), and therefore be void under 101(2).
Term
What are MSME's?
Definition
Micro, Small and Medium sized Enterprises
Term
What are MSME's?
Definition
Micro, Small and Medium sized Enterprises
Term
What are MSME's?
Definition
Micro, Small and Medium sized Enterprises
Term
What are MSME's?
Definition
Micro, Small and Medium sized Enterprises
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