Competition Law in the Digital Market: Key Cases and Concepts | Quizlet

Intra-brand Competition

Competition among sellers of the same brand.

Inter-brand Competition

Competition between different brands in the market.

Proportionality Principle

Restrictions must be necessary and proportionate to objectives.

Market Exclusion

Preventing a competitor from accessing a market.

Litmus Test for Competition

Criteria to evaluate if competition is restricted. The litmus test for establishing a restriction of competition in this case looks at whether the restrictions were objectively necessary and examines whether the agreements:

- Contribute to improving the distribution of goods,

- Allow consumers to benefit fairly,

- Avoid imposing unnecessary restrictions, and

- Do not eliminate competition for a substantial part of the products concerned​

Dual Pricing Scheme

Different prices for domestic and export pharmaceuticals.

Parallel Trade

Cross-border trade of goods within EU Member States.

Restrictions by Object

Certain harmful practices presumed anti-competitive without proof.

Horizontal Price-Fixing Cartels

Coordination types harmful enough to restrict competition.

Restriction of Competition by Object

Agreement inherently harms competition without effects analysis.

Sufficient Degree of Harm

Necessary for classifying restriction by object.

Referral Back to General Court

CJEU's instruction for further evaluation of effects.

Restrictive Practices

Actions that limit competition or market entry.

Competitive Harm

Evidence of negative impact on market competition.

Cartes Bancaires

Case highlighting risks of anti-competitive schemes.

Market Power

Ability of a company to influence market conditions.

Dominant Position

Significant control over market dynamics by a company.

Market Share

Percentage of total sales controlled by a company.

Competition Threat

Inability of competitors to effectively challenge dominance.

Customer Power

Customers' ability to influence market dynamics.

Anticompetitive Foreclosure

Blocking competitors harms consumers' market options.

Price-Based Exclusionary Conduct

Using unfair pricing to eliminate competition.

Below-Cost Pricing

Selling below production cost to harm rivals.

Cost Measures

Data used to evaluate competitor survival under pricing.

Justifications for Conduct

Defenses for dominant companies' potentially harmful actions.

Exclusive Dealing

Requiring customers to purchase exclusively from one supplier.

Conditional Rebates

Discounts based on meeting specific purchasing criteria.

Efficiencies

Benefits that must outweigh competition harm in assessments.

Tying

Mandatory purchase of a secondary product with a main one.

Bundling

Selling multiple products together at a discounted price.

Market Conditions

Factors affecting competition, including entry barriers.

Customer Behavior

Actions and preferences of customers influencing market dynamics.

Supplier Influence

Impact of suppliers on market competition and pricing.

Harmful Conduct Duration

Length of time the anti-competitive behavior persists.

Intent to Harm Competition

Evidence showing deliberate actions against market rivals.

Multi-Product Rebates

Discounts on bundles affecting competitor profits.

Commission Role

Evaluates competitor profitability against bundled discounts.

Efficiencies

Cost reductions benefiting consumers without harming competitors.

Predation

Dominant firms incur losses to eliminate competition.

Sacrifice

Selling below production cost indicates intentional losses.

Average Avoidable Cost (AAC)

Minimum price to avoid losses in production.

Anti-competitive Foreclosure

Actions preventing efficient competitors from competing.

Market Manipulation

Strategies to deter new or existing competitors.

Refusal to Supply

Dominant firms denying essential products raises concerns.

Margin Squeeze

Pricing prevents competitors from making a profit.

Litmus Test

Criteria for evaluating market dominance and conduct.

Market Dominance

Company's strength and control in the market.

Barriers to Entry

Obstacles preventing new competitors from entering.

Competitor Status

Importance of even small competitors in analysis.

Customer Behavior

Consumer responses to company actions matter.

Supplier Behavior

Supplier dynamics influence competitive landscape.

Harmful Conduct Duration

Length and spread of anti-competitive behavior.

Intent to Harm

Evidence of a company's motive to reduce competition.

Price-Based Exclusionary Conduct

Pricing strategies aimed at excluding competitors.

Justifications for Behavior

Possible reasons for a company's anti-competitive actions.

Error Costs

Risks of misclassifying competitive practices as anti-competitive.

Over-Enforcement

False positives leading to unnecessary penalties.

Under-Enforcement

False negatives allowing harmful practices to persist.

Competition Law

Regulations promoting market fairness and innovation.

SCP Thinking

Framework analyzing Structure, Conduct, Performance.

Market Structure

Composition and organization of firms in a market.

Market Conduct

Behavior of firms in the marketplace.

Market Performance

Efficiency and effectiveness of market outcomes.

101 TFEU

Prohibits cooperation restricting competition.

102 TFEU

Prohibits abuse of dominant market position.

Merger Control

Regulation requiring approval for significant mergers.

Internal Market

EU market ensuring free movement of goods.

Undistorted Competition

Fair competition without barriers between member states.

Article 26(2) TFEU

Guarantees free movement within the internal market.

Protocol No. 27

Supports competition rules for internal market creation.

Price Fixing

Agreement among firms to set prices collectively.

Reverse Engineering

Analyzing laws to identify underlying objectives.

Error Costs

Costs associated with incorrect legal interpretations.

Accused Undertaking

Entity being investigated for competition law violations.

Commission

EU body enforcing competition law through complaints.

Plaintiff

Party initiating a complaint in competition cases.

Article 102 Objectives

Sanctions practices harming competition structure or consumers.

Intel Case

Illustrates permissible aggressive competition behavior.

Consumer Healthcare

Focus on consumer welfare in competition assessments.

Competitively Restrictive Behavior

Actions limiting competition, potentially justified by benefits.

Structure-Tree Analysis

Examining market structure to assess competition restrictions.

Competitive Process

Interaction between firms affecting market dynamics.

Market Structure

Organization of a market based on competition levels.

Efficiency

Performance outcome of the competitive process.

Selective Distribution

Restricts distributors to enhance market power.

Metro I Case

Case illustrating compliance with distribution criteria.

GlaxoSmithKline Case

Examines pharmaceutical monopolies and pricing strategies.

Consumer Welfare

Benefits received by consumers from market competition.

Monopoly

Single seller dominating a market, potentially beneficial.

Trade-off in Welfare

Balancing current and future consumer benefits.

Cartes Bancaires Case

High prices in digital payments due to market structure.

Commission Guidance

Advice for proving efficiency in competition complaints.

Efficient Competitor

Firm capable of competing effectively in the market.

EU Competition Law

Regulations governing competition within the European Union.

Innovation Focus

Emphasis on developing new products and technologies.

Pharmaceutical Patents

Government grants protecting drug manufacturers' innovations.

Market Monopoly

Dominance by a single firm, often due to patents.

Competition Health

Assessment of market dynamics and firm performance.

Digital Payment Market

Sector involving electronic transactions and payment systems.

Market Integrity

Overall stability and fairness of the market structure.