CMAP ANTITRUST (2016)Pràctica Inglés
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WHAT DO WE CALL A “RELEVANT MARKET”?
Market in which a particular product or service is sold. It is the intersection of a relevant product
market and a relevant geographic market.
GOALS Trusts and monopolies are concentrations of economic power in the hands of a few. Economists believe that such control injures both individuals and the public because it leads to anticompetitive practices in an effort to obtain or maintain total control. Anticompetitive practices then lead to price controls and diminished individual initiative. These results in turn cause markets to stagnate and depress economic growth.
The Antitrust Law protects both consumers and smaller producers from predatory business practices by ensuring that fair competition exists in an open-market economy.
Mergers between companies is… Abuse of dominant position Article 102 of the Treaty on the Functioning of the European Union (TFEU) prohibits abusive conduct by companies that have a dominant position on a particular market.
MONOPOLY: a single company or group owns all or nearly all of the market for a given type of product or service. Characterized by an absence of competition, which often results in high prices and inferior products.
PERFECT COMPETITION: no participants are large enough to have the market power to set the price of ahomogeneous product.
ANTITRUST LAW Behaviours facing… MONOPOLISTIC COMPETITION: many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes.
Ley 15/2007, de 3 de julio, de Defensa de la Competencia Applied by the Comision nacional de competencia in Spain, and by the Autoritat Catalana de la Competència in Catalonia.
In order to do a merger we will need a “merger agreement” focused on five key terms: Conditions, Representations and Warranties, Covenants, Termination rights and Provisions.
Competition Act, 1998. Chapter 3, Merger Control. Articles from 11 to 18.
OLIGOPOLY: a few firms dominate. Although only a few firms dominate, it is possible that many small firms may also operate in the market.
In the EU the regulation is Competition Act and applied by the EU comision.
Agreements and exeptions Article 101 of the TFEU prohibits agreements between companies which prevent, restrict or distort competition in the EU and which may affect trade between Member States (anticompetitive agreements). These include, for example, price-fixing or market-sharing cartels. Article 101 can be applied by the European Commission or by the competition authorities of the EU Member States.
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