Chapter 27 Self-test questions

What are the ways that an agreement, purportedly caught by Article 101(1) TFEU and therefore prima facie in breach of EU competition law, can be exempt from action by the Commission. Please select all that apply.

By operation of Article 101 (3)TFEU

By coming outside of a block exemption

By coming inside a block exemption

By coming within a notice from the Commission.

By being of economic value to the EU

In practice, an agreement, even a "gentleman's agreement" does not have be a key part of an action under Article 101(1) TFEU since competition authorities need only show ____________.

An undertaking situated outside the EU may be liable under Article 101(1) TFEU.

True

False

What factors has the CJ held will assist in determining whether an agreement is capable of preventing, restricting or distorting competition? Please select all that apply.

The nationality of the parties concerned

The environmental impact of the products concerned

The possibility of other commercial currents acting on the same products

The nature and quantity of the products concerned

The severity of its clauses

The isolated nature of the agreement or its position in a series

The submissions of competitors

The position and size of the parties concerned

If an agreement falls within the __________ principle, even if it contains the most blatantly anticompetitive clauses (e.g., price fixing) or intends to restrict competition, there will be no breach of Article 101(1) TFEU.

An agreement caught within Article 101(1) TFEU and not within a block exemption or Article 101(3) TFEU is only void if the Commission decides so.

True

False

The provisions of Article 102 TFEU apply also to oligopolies.

True

False

Which of the following is not part of the definition of the 'relevant market' under Article 102 TFEU as was set out by the CJ?

The relevant product market in which products are substantially interchangeable.

The relevant geographical market, which means that the undertaking must be dominant in one Member State.

The temporal market, in which the temporal aspect of the market is considered.

Consider the following problem question and select the correct option. Chips Incorporated and Computer Parts Incorporated together produced 95 per cent of the computer chips in the market. Chips Incorporated made a bid to purchase Computer Parts Incorporated. Does this action potentially breach Article 102 TFEU?

No. Consumers will still be able to buy similar products from other companies.

No. Other businesses can still supply similar products within the common market.

Yes. The unification of the two companies will dominate the market, and thus hinder consumers from purchasing similar products and hinder other firms from supplying similar products.

In order for dominance to constitute a breach of Article 102 TFEU, there must be an __________ of that dominance.

Which of the following does not constitute abuse under Article 102 TFEU?

Charging similar prices for products in different areas of the market.

An excessive price which bears no reasonable relation to the economic value of the product.

Unfair trading conditions which may limit the market choice for the consumer.

Refusal to supply to wholesalers in retaliation for an advertising campaign for a competitor.

Reducing prices below cost in order to drive potential competitors out of the market constitutes abuse.

True

False

'Undertakings' in Article 102 TFEU refers to activities that are both private and __________.

_________ Competition authorities and courts now have the full power to apply Article 101 TFEU and Article 102 TFEU.

Quiz Content