Term
| What type of economies do the UK and EC have? |
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Definition
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Term
| Overall purpose of competition laws... |
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Definition
| To ensure that those engaging in business and economic activity do not prevent, distory, or restrict competition or abuse their position in the market to the detriment of other competitors and/or consumers |
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Term
| How is competition law governed in the UK? |
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Definition
Domestic Law - The Competition Act 1998
EU law
Domestic law operates in close alignment with EU law |
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Term
| What do articles 3-6 TFEU set out? |
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Definition
| It enables the EU to have competence in certain areas (sometimes exclusive competence), which will enable it to pursue certain activities, in the pursuit of the common market |
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Term
| What was one of the fundamental tasks of the original EEC? |
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Definition
| To establish a common market - the single, internal market |
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Term
| In order to establish the common market, the EEC was requried to have certain competencies which are set out in... |
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Definition
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Term
| What does article 3(1)(b) TFEU provide for? |
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Definition
| Provides the EU with exclusive competence in the area of establishing the competition rules necessary for the functioning of the internal market |
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Term
| What do articles 3 - 6 TFEU do?? |
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Definition
| They provide a framework for the establishment and operation of the single market |
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Term
| What are the key articles w.r.t establishing the goals/framework/operation of competition law in the EU? |
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Definition
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Term
| What is the key EU institution involved in EU competition policy? |
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Definition
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Term
| What does the commission do with regards to EU competition policy? |
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Definition
| Responsible for... Investigating potential breaches by Mss and if appropriate reporting them to the general court / CJ, administering and enforcing EU competition policy - fact-finding, taking action for infringements, can impose fines and penalties for infringements (on individuals and companies) |
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Term
| What is a recent example of Commission pressure resulting in a company 'changing it's approach' without having to go to the CJ? |
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Definition
| Vodafone dropped its roaming charges on customers using their mobiles in other EU countries |
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Term
| Although not specifically set out in the treaties, EU competition law has two basic and complementary aims... |
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Definition
1) To promote a competitive market economy (e.g. aims to improve the EU's competitive performance in the global market)
2) To prevent barriers to the integration of the single, internal market (in this aim, EU law differs from other non-EU countries) |
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Term
| What does the EU's common market want to replicate? |
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Definition
| the conditions that exist in a national market |
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Term
| How do the two key goals of the the EU competition law complement each other? |
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Definition
| Through the free movement of goods, it hopes to promote competition, and through competition law, it hopes to prevent barriers being re-erected, which would 'quash' competition. |
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Term
| Removal of barriers to trade = preventing distortion of the market by... |
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Definition
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Term
| Competition law prevents distortion of the market by... |
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Definition
| private enterprise (and members states) |
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Term
| Where is the primary legislation dealing with the prevention of distortion in the market set out? |
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Definition
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Term
| Where is the secondary legislation, preventing distortion of the market) set out? (NOTE: only refer to content covered on this course) |
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Definition
| Regulation 1/2003 and regulation 330/2010 |
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Term
| Other than Treaty articles and regulations, what other factor determines competition law in the EU? |
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Definition
| Judgements of the EU courts |
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Term
| What role do the General court and the CJ play w.r.t competition law? |
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Definition
they can review decisions of the Commission, the national competition authorities, and the national courts of member states on breaches of EU competition law
they also interpret the above legislation. |
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Term
| What are the key pieces of legislation which need to be known on this course? |
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Definition
Articles 101 & 102 TFEU
Regulations 1/2003 & 330/2010 |
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Term
| What does Regulation 1/2003 do? |
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Definition
| It sets out how Articles 101 & 102 are to be enforced |
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Term
| What does Regulation 330/2010 do? |
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Definition
| It grants block exemptions for vertical agreements which would otherwise breach Article 101 |
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Term
| What has regulation 1/2003 been dubbed as? |
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Definition
| The modernisation regulation |
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Term
| What regulation did regulation 1/2003 replace? |
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Definition
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Term
| What did regulation 17/62 do/say? |
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Definition
Commission = responsible for applying/enforcing Art 101
Commission = responsible for granting exemptions (subject to review by the courts) |
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Term
| What was the problem with the 'arrangement' under Regulation 17/62? |
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Definition
Commission = distracted from dealing with more serious infringements
Commission = overwhelmed with the burden of granting exemptions, therefore, exemptions = time-consuming, lenghty process, expensive & rarely granted
Because of time issues, Commission often forced to deal with exemption requests by issuing 'comfort letters', which are not formal decisions and not legally binding, which created legal uncertainty for the parties |
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Term
| What is the biggest change that was made by regulation 1/2003? |
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Definition
| the authority for applying Art 101 TFEU was devolved from the Commission to the NCAs (National Competition Authorities) |
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Term
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Definition
| OFT - Office of Fair Trading |
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Term
| The Commission, in conjunction with the NCAs is known as... |
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Definition
| The European Competition Network - a network of public authorities dealing with EU competition law |
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Term
| What are three key structural (application) changes made by regulation 1/2003? |
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Definition
1) Parties to an agreement/decision/concerted practice, must themselves decide whether an agreement infringes Art 101 and/or Art 102
2) The power to apply Arts 101/102 is in the hands of the NCAs
3) National courts may also apply Arts 101&102, and may deal with appeals from decisions of the NCAs, and may also challenge the decisions of parties that an agreement does not infringe Art 101 |
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Term
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Definition
| Company refused to supply information to an investigation on the grounds of self-incrimination, and was fined as a consequence |
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Term
| How will a typical cartel investigation begin? |
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Definition
| From information provided by a 'whistle-blowing' cartel member, who is granted 100% immunity for their contribution |
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Term
| What will happen to the fines faced by repeat offenders? |
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Definition
| They will be increased - see Elevators and Escalators Cartel |
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Term
| Elevators and Escalators Cartel |
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Definition
Whistle blowing cartel member will receive immunity.
Repeat offenders will suffer an increased fine |
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Term
| What is a 'leniency notice'? |
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Definition
| A notice which established a marker system by which any cooperating/whistle blowing cartel member can mark the point at which they begin secretly working for the Commission |
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Term
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Definition
| In this case, the whistleblower (Bayer) received 100% immunity, despite being a repeat offender. Another party (Dow) received a 40% reduced fine for cooperating, and a third party (Shell) received a 50% increased fine for being a repeat offender. |
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Term
| However, what problem has the Commission noticed with issuing fines? |
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Definition
As cartel members can make huge profits, the benefit of the profits may outweight the risk/cost of the fines.
ALSO, investigations consume a considerable amount of the Commisssion's resources |
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Term
| What alternatives to Fines is the Commission considering? |
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Definition
1) allowing out of court settlements as soon as a cartel is discovered, in return for an immediate cessation of cartel activity.
2) encouraging more private actions by cartel victimes
3) criminal sanctions, as in the US |
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Term
| What page of the statute book is Regulation 1/2003 on? |
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Definition
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