Competition Law Training For Managers

1. Company A and Company B are both located in the Netherlands and are in the same business. These companies are severely competing in the Rotterdam and the Amsterdam harbours. Therefore Company A contacts Company B and suggests that if Company B only serves the Rotterdam harbour, Company A will only serve the Amsterdam Harbour. Then it will be easier for both Companies to be in business. Is this allowed?

No, because that would be market sharing and be deemed anti- competitive

As this is completely taking place in the Netherlands, the EU competition law doesn’t apply here

Market sharing agreements, where competitors agree to divide markets or customers, are generally considered anti-competitive and prohibited by competition laws. Such agreements can limit competition and harm consumers by reducing choices and potentially leading to higher prices. In this case, Company A and Company B's agreement to divide the Rotterdam and Amsterdam harbours would fall under market sharing and would likely be considered anti-competitive. Therefore, it is not allowed.

Explanation

Market sharing agreements, where competitors agree to divide markets or customers, are generally considered anti-competitive and prohibited by competition laws. Such agreements can limit competition and harm consumers by reducing choices and potentially leading to higher prices. In this case, Company A and Company B's agreement to divide the Rotterdam and Amsterdam harbours would fall under market sharing and would likely be considered anti-competitive. Therefore, it is not allowed.

2. Please read the PowerPoint about Competition Law training part 2 on below link https://alphatronmarine.sharepoint.com/sites/s_alphadms/Pages/QHSE-searchmeta.aspx?k=competition%20law

Hereby I confirm that I have read the PowerPoint about Competition Law training part 2

I did not read the Powerpoint about Competition Law training part 2

not-available-via-ai

Explanation

not-available-via-ai

3. Which of these types of behaviour are prohibited by the EU competition law?

Anti -competitive agreements such as pricing agreements, assigning parts of the market

Abuse of a dominant position

Exchanging sensitive information on the market, prices, customers, etc

All of the above

The EU competition law prohibits anti-competitive agreements, abuse of a dominant position, and exchanging sensitive information on the market, prices, customers, etc. Anti-competitive agreements include pricing agreements and assigning parts of the market, which restrict competition and harm consumers. Abuse of a dominant position refers to a company using its market power to unfairly eliminate competition. Exchanging sensitive information can lead to collusion and anti-competitive behavior. Therefore, all of these behaviors are prohibited by the EU competition law.

Explanation

The EU competition law prohibits anti-competitive agreements, abuse of a dominant position, and exchanging sensitive information on the market, prices, customers, etc. Anti-competitive agreements include pricing agreements and assigning parts of the market, which restrict competition and harm consumers. Abuse of a dominant position refers to a company using its market power to unfairly eliminate competition. Exchanging sensitive information can lead to collusion and anti-competitive behavior. Therefore, all of these behaviors are prohibited by the EU competition law.

4. Please read the PowerPoint about Competition Law training part 1 on below link https://alphatronmarine.sharepoint.com/sites/s_alphadms/Pages/QHSE-searchmeta.aspx?k=competition%20law

Hereby I confirm that I have read the PowerPoint about Competition Law training part 1

I did not read the Powerpoint about Competition Law training part 1

not-available-via-ai

Explanation

not-available-via-ai

5. What is the main purpose of the Competition Law?

Prohibiting cartels

Stimulating competition in the EU market, as this has positive effects on prices, quality and diversity of products

Protecting European companies from competition from outside the EU

The main purpose of the Competition Law is to stimulate competition in the EU market. This is because competition has positive effects on prices, quality, and diversity of products. By promoting competition, the law aims to create a level playing field for businesses, prevent anti-competitive behavior such as cartels, and ultimately benefit consumers by ensuring fair prices, improved product quality, and a wider range of choices. Additionally, stimulating competition also encourages innovation and efficiency in the market, leading to economic growth and development.

Explanation

The main purpose of the Competition Law is to stimulate competition in the EU market. This is because competition has positive effects on prices, quality, and diversity of products. By promoting competition, the law aims to create a level playing field for businesses, prevent anti-competitive behavior such as cartels, and ultimately benefit consumers by ensuring fair prices, improved product quality, and a wider range of choices. Additionally, stimulating competition also encourages innovation and efficiency in the market, leading to economic growth and development.

6. In which of the following cases should you be cautious when it comes to EU Competition Law?

When you make pricing agreements with a third party

When you make price arrangements with another Alphatron Marine office

When you request prices with a supplier

When you make pricing agreements with a third party, you should be cautious when it comes to EU Competition Law. This is because such agreements can potentially lead to anti-competitive behavior, such as collusion or price-fixing, which is prohibited under EU Competition Law. Engaging in these practices can result in significant fines and penalties by the European Commission. Therefore, it is important to ensure that any pricing agreements made with third parties comply with the principles of fair competition and do not harm market competition.

Explanation

When you make pricing agreements with a third party, you should be cautious when it comes to EU Competition Law. This is because such agreements can potentially lead to anti-competitive behavior, such as collusion or price-fixing, which is prohibited under EU Competition Law. Engaging in these practices can result in significant fines and penalties by the European Commission. Therefore, it is important to ensure that any pricing agreements made with third parties comply with the principles of fair competition and do not harm market competition.

7. What are possible risks from non-compliance?

Substantial fines and work disruptions

Higher taxes and cancellation of business licenses

All of the above

Non-compliance with regulations or laws can lead to substantial fines and work disruptions. When a company fails to comply with legal requirements, it may face penalties in the form of fines imposed by regulatory authorities. These fines can be significant and have a direct impact on the company's financial stability. Additionally, non-compliance can result in work disruptions, such as legal actions, investigations, or even temporary closure of operations. Therefore, both substantial fines and work disruptions are possible risks that businesses face when they do not comply with regulations.

Explanation

Non-compliance with regulations or laws can lead to substantial fines and work disruptions. When a company fails to comply with legal requirements, it may face penalties in the form of fines imposed by regulatory authorities. These fines can be significant and have a direct impact on the company's financial stability. Additionally, non-compliance can result in work disruptions, such as legal actions, investigations, or even temporary closure of operations. Therefore, both substantial fines and work disruptions are possible risks that businesses face when they do not comply with regulations.

8. Is it allowed that a manufacturer of a certain product tells his distributor that they may only actively (I.e. by approaching potential customers) and passively (at a potential customer's request) sell products and services in their own country?

Yes, as the manufacturer and the distributor are in a vertical relationship

No, this is a hardcore infringement that is almost impossible to justify

The correct answer is that it is allowed to tell distributors to only actively approach potential customers in their own area, but passive sales (for outside their own area) must be allowed at all times. This is because, in a vertical relationship between a manufacturer and a distributor, the manufacturer has the right to set certain restrictions on the distributor's sales activities. However, completely prohibiting passive sales outside the distributor's area would be considered a hardcore infringement, as it would restrict competition and limit consumer choice. Therefore, passive sales should be allowed outside the distributor's area to ensure fair competition.

Explanation

The correct answer is that it is allowed to tell distributors to only actively approach potential customers in their own area, but passive sales (for outside their own area) must be allowed at all times. This is because, in a vertical relationship between a manufacturer and a distributor, the manufacturer has the right to set certain restrictions on the distributor's sales activities. However, completely prohibiting passive sales outside the distributor's area would be considered a hardcore infringement, as it would restrict competition and limit consumer choice. Therefore, passive sales should be allowed outside the distributor's area to ensure fair competition.