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Transcript

What is Competition law?

Understand the notions

Competition:
Rivalry between companies selling similar products and services with the same goal:
Gain profits and market shares.

Competition law:
Set of rules that promote and protect undistorted and fair competition.
Goal: Seek and Neutralize anticompetitive practices.

Main principles of competition law

Freedom of competition implies the prohibition of the following anti-competitive practices :

Fix prices agreements

Abuse of dominant market position

Cartels

State aids

Gun Jumping /Mergers

Competent Authorities

Source of Competition law

National Sources:

Code civil (fault-based liability)


Code du commerce (L 410-1 and following)

Code pénal des affaires (misleading advertising, unfair commercial practices)

Rules of competition law are codified in the :

European Sources:

TFUE: Articles 101, 102 and 106

EU regulations
ECJ jurisprudence

Autorité de la concurrence:


THE competitive regulator in France, is composed by law experts and chaired by Emmanuel Combe.

Fonction:

  • Enforcing competition rules
  • Preventing abuse of the market economy
  • Issuing sanctions in case of breach by

The European Commission:

In charge of EU competition law violations and chaired by Margaret Vestager.

2 functions:

  • Preventive: Guarantee freedom of competition and limit cartels
  • Repressive: Sanction abusive competitive behaviors

Protects companies AND consumers

Competition law protects consumers by creating a wider choice for them and helps reduce prices and improve quality.

Fix prices agreements are agreements between sellers to raise or fix prices in order to restrict inter- firm competition and earn higher profits.


Price fixing agreements are formed by firms in an attempt to collectively behave as a monopoly.


Price Fixing agreements are ILLEGAL.

Abuse of dominance is unilateral conduct using dominant market power (or a dominant position) that damage market competition and ultimately welfare.


It is the ability of an organisation to act without significant constraint, or to influence prices to exclude competition, or to profitably maintain prices above the cost of supply in the long run.


Abuse of dominant position is ILLEGAL.

Cartel are arrangement(s) between competing firms designed to limit or eliminate competition with the objective of increasing prices and profits of the participating companies and without producing any objective countervailing benefits.

In practice, this is generally done by fixing prices, limiting output, sharing markets, allocating customers or territories, bid rigging or a combination of these.


Cartels are harmful to consumers and society and are ILLEGAL.

State aid is a support received by a company and given by a Government that provide gains and advantage over the other competitors.


State aids are ILLEGAL.

The term gun-jumping originated in sports and refers to athletes starting the race before the starting gun is fired. In competition law, Gun-jumping refers to the early completion of the merger without notifying the competition authorities.


Gun-jumping is ILLEGAL.

What is Competition law?

Understand the notions

Competition:
Rivalry between companies selling similar products and services with the same goal:
Gain profits and market shares.

Competition law:
Set of rules that promote and protect undistorted and fair competition.
Goal: Seek and Neutralize anticompetitive practices.

Main principles of competition law

Freedom of competition implies the prohibition of the following anti-competitive practices :

Fix prices agreements

Abuse of dominant market position

Cartels

State aids

Gun Jumping /Mergers

Competent Authorities

Source of Competition law

National Sources:

Code civil (fault-based liability)


Code du commerce (L 410-1 and following)

Code pénal des affaires (misleading advertising, unfair commercial practices)

Rules of competition law are codified in the :

European Sources:

TFUE: Articles 101, 102 and 106

EU regulations
ECJ jurisprudence

Autorité de la concurrence:


THE competitive regulator in France, is composed by law experts and chaired by Emmanuel Combe.

Fonction:

  • Enforcing competition rules
  • Preventing abuse of the market economy
  • Issuing sanctions in case of breach by

The European Commission:

In charge of EU competition law violations and chaired by Margaret Vestager.


2 functions:

  • Preventive: Guarantee freedom of competition and limit cartels
  • Repressive: Sanction abusive competitive behaviors

Protects companies AND consumers

Competition law protects consumers by creating a wider choice for them and helps reduce prices and improve quality.

Fix prices agreements are agreements between sellers to raise or fix prices in order to restrict inter- firm competition and earn higher profits.


Price fixing agreements are formed by firms in an attempt to collectively behave as a monopoly.


Price Fixing agreements are ILLEGAL.

Abuse of dominance is unilateral conduct using dominant market power (or a dominant position) to damage market competition and ultimately welfare.


It is the ability of an organisation to act without significant constraint, or to influence prices to exclude competition, or to profitably maintain prices above the cost of supply in the long run.


Abuse of dominant position is ILLEGAL.

Cartel are arrangement(s) between competing firms designed to limit or eliminate competition with the objective of increasing prices and profits of the participating companies and without producing any objective countervailing benefits.

In practice, this is generally done by fixing prices, limiting output, sharing markets, allocating customers or territories, bid rigging or a combination of these.


Cartels are harmful to consumers and society and are ILLEGAL.

State aid is a support received by a company and given by a Government that provide gains and advantage over the other competitors.


State aids are ILLEGAL.

The term gun-jumping originated in sports and refers to athletes starting the race before the starting gun is fired. In competition law, Gun-jumping refers to the early completion of the merger without notifying the competition authorities.


Gun-jumping is ILLEGAL.