In 2018 the European Commission fined four electronics manufacturers for breaking EU competition rules.

• 1. Who were the four companies in breach of EU competition rules?
  • a. Which article of the TFEU did the companies breach?
  • b. What specific behaviour led to them being fined?
  • c. How much was each company fined?
  • d. Why were the fines reduced?
  • e. Discuss whether the size of the fines would deter companies like Philipps and Pioneer from breaching competition rules.
• 2.
  • a. What are vertical restraints?
  • b. Why do companies like Philips and Pioneer establish such restraints? 

Websites

https://www.shearman.com/perspectives/2018/07/ec-fines-consumer-electronics-manufacturers

http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=1_40465

http://europa.eu/rapid/press-release_IP-18-4601_en.htm

Paying  particular attention to section 2.3, see Margaret Slade’s article: http://www.konkurrensverket.se/globalassets/english/research/report-the-pros-and-cons-of-vertical-restraints-18mb.pdf

See information on Philips on the SEC website e.g. https://www.philips.com/static/annualresults/2017/PhilipsFullAnnualReport2017-English.pdf

For Pioneer, see: https://global.pioneer/en/news/press/2018/pdf/0725-1.pdf, and  https://global.pioneer/en/ir/library/announcement/#Fy2019_1q

http://ec.europa.eu/competition/antitrust/legislation/guidelines_vertical_en.pdf