This essay evaluates the distinction between legitimate oligopolistic behaviour and cartels/concerted practices prohibited under Article 101 TFEU. It sets out a handy definition of oligopolistic behaviour for an evaluation in the context of competition law and carves out the important aspects of applying Article 101 TFEU in regard to such markets. The analysis itself covers explicit coordination (cartels in the strict sense), the means of information sharing and tacit coordination. It assesses the judgements of the ECJ in those matters and eventually offers a way to make tacit collusion actionable under European competition law de lege lata.
Inhaltsverzeichnis (Table of Contents)
- Preface
- Definition of "oligopolistic behaviour" within the meaning of the analysis
- Outline of Art. 101 TFEU
- The application of Art. 101 TFEU in the context of oligopolistic behaviour
- Explicit coordination (cartels in the strict sense)
- Price fixing, output restrictions, market sharing and collusive tendering
- Non-price trading conditions
- Information sharing
- Information exchanges directly between competitors
- Exchange of sensitive informations indirectly through trade associations or reporting agencies
- Exchange of statistical data through trade associations or reporting agencies
- Public advance price announcements
- Tacit coordination
- The role of Article 101 (3) TFEU
- Synopsis
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this essay is to evaluate the distinction between legitimate oligopolistic behavior and cartels or concerted practices prohibited under Article 101 TFEU. It aims to achieve this by first clarifying the terminology surrounding oligopolistic behavior and then examining the application of Article 101 TFEU within the context of oligopolistic markets.
- Definition and interpretation of "oligopolistic behavior" under Article 101 TFEU.
- Analysis of explicit coordination (cartels) and their prohibition under Article 101 TFEU.
- Examination of tacit coordination and its implications under Article 101 TFEU.
- The role of Article 101(3) TFEU in granting exceptions to the prohibition.
- Distinguishing between legitimate competitive behavior and prohibited concerted practices in oligopolistic markets.
Zusammenfassung der Kapitel (Chapter Summaries)
Preface: This introductory chapter establishes a working definition of "oligopolistic behavior" for the purpose of the analysis, emphasizing that the term doesn't inherently imply illegality. It also provides a structural overview of Article 101 TFEU, highlighting its requirement for interaction between undertakings, ruling out unilateral conduct as a violation. The definition of oligopoly avoids absolute numerical thresholds, focusing instead on the interdependence of relatively few sellers in a market, a feature central to understanding the application of Article 101 TFEU. This approach allows for a less restrictive and more nuanced interpretation of the article.
The application of Art. 101 TFEU in the context of oligopolistic behaviour: This chapter delves into the application of Article 101 TFEU to various forms of oligopolistic behavior. It analyzes both explicit coordination, such as cartels involving price-fixing, output restrictions, and market sharing, and tacit coordination, where firms engage in parallel conduct without explicit agreements. The role of information sharing among competitors and the potential for concerted practices through trade associations are also explored, focusing on the line between legitimate information exchange and prohibited collusion. The chapter critically examines how these types of behaviors might or might not meet the criteria for violating Article 101 TFEU.
Schlüsselwörter (Keywords)
Oligopolistic behavior, Article 101 TFEU, cartels, concerted practices, tacit coordination, competition policy, economic analysis, legal policy, information sharing, market structure, price collusion.
Frequently Asked Questions: A Comprehensive Language Preview on Oligopolistic Behaviour and Article 101 TFEU
What is the main focus of this document?
This document provides a comprehensive overview of oligopolistic behavior and its implications under Article 101 of the Treaty on the Functioning of the European Union (TFEU). It examines the distinction between legitimate oligopolistic behavior and prohibited cartels or concerted practices.
What topics are covered in the Table of Contents?
The Table of Contents includes a Preface defining "oligopolistic behavior" and outlining Article 101 TFEU; a section on the application of Article 101 TFEU to explicit and tacit coordination in oligopolistic markets (including price fixing, output restrictions, market sharing, and information sharing); and a synopsis.
What are the key objectives and themes explored?
The key objectives are to define and interpret "oligopolistic behavior" under Article 101 TFEU; analyze explicit coordination (cartels) and their prohibition; examine tacit coordination and its implications; understand the role of Article 101(3) TFEU in granting exceptions; and distinguish between legitimate competition and prohibited concerted practices in oligopolistic markets.
How does the document define "oligopolistic behavior"?
The document establishes a working definition of "oligopolistic behavior" that emphasizes interdependence among a relatively small number of sellers, without necessarily implying illegality. It avoids rigid numerical thresholds, focusing instead on the market structure's inherent characteristics.
What types of oligopolistic behavior are discussed?
The document discusses both explicit coordination (cartels), such as price fixing, output restrictions, market sharing, and collusive tendering, and tacit coordination, where firms engage in parallel conduct without explicit agreements. Information sharing and its potential for facilitating concerted practices are also analyzed.
What is the role of Article 101(3) TFEU?
Article 101(3) TFEU is discussed in relation to its potential to grant exceptions to the prohibition of anti-competitive agreements. The document explores how this article allows for certain agreements to be exempted from the general prohibition if they contribute to improvements in production or distribution, and ultimately benefit consumers.
How does the document distinguish between legitimate and prohibited behavior?
The document carefully examines the line between legitimate competitive behavior and prohibited concerted practices. It analyzes various scenarios to illustrate how specific actions might or might not meet the criteria for violating Article 101 TFEU.
What are the key terms used throughout the document?
Key terms include oligopolistic behavior, Article 101 TFEU, cartels, concerted practices, tacit coordination, competition policy, economic analysis, legal policy, information sharing, market structure, and price collusion.
What is the overall structure of the document?
The document is structured with a preface providing a general overview, followed by in-depth analysis of the application of Article 101 TFEU to different types of oligopolistic behavior, concluding with chapter summaries and keywords. The structure is designed to provide a clear and logical progression through the topic.
Where can I find chapter summaries?
The document includes concise summaries of the key points and arguments presented in the preface and the main chapter on the application of Article 101 TFEU to oligopolistic behavior. These summaries provide a convenient overview of the content covered.
- Quote paper
- Philipp Scholz (Author), 2011, Evaluation of the distinction between legitimate oligopolistic behaviour and cartels/concerted practices prohibited under Article 101 TFEU, Munich, GRIN Verlag, https://www.grin.com/document/192142
