Exam 21: Regulating the Competitive Environment

The European Union's competition law exemption system functions very much like the American antitrust law rule of reason.

Prohibitions against agreements that restrict competition are the least relevant to international transactions.

Antitrust law in the European Union is known as competition law.

In the Hartford Fire Insurance Co.case,the U.S.Supreme Court determined that it could not assert jurisdiction over European companies in competition matters unless the companies had a direct physical presence in a U.S.state.

Under the European Commission's block exemption,the parties whose agreements fall under certain exempted categories only have to seek de minimis approval for their transactions to be considered exempt under competition law.

The European Court of Justice has issued a decision giving franchisor-franchisees great flexibility in structuring.

The European Commission has given exemptions in all of the following areas except:

The European Union uses an exemption system in its competition law.This means that:

The U.S.antitrust laws apply to the conduct of U.S.firms outside the territorial boundaries of the United States.

Consider in what ways the histories of the U.S.,Japan,and Europe may explain their respective laws regarding market competition and competition.

Article 86 of the Treaty of Rome is the counterpart of Article 2 of the U.S.Sherman Act with both addressing the problem of monopolies and monopoly power.

Under U.S. antitrust law: I. Most actions are brought by private individuals. II. Successful litigants can collect treble damages.

Weigh the relative benefits and short-comings of the EU preapproval model and the U.S.litigation model as exemplified by the Hart-Scott-Rodino Antitrust Improvements Act.

Knowledgeable that Canada,Germany,and the UK have enacted blocking legislation,craft a treaty on this issue.How might the different interests of these countries and partnerships (or lack thereof)with them affect any treaty? Students may also wish to read Laker Airways v.Sabena,Belgian World Airlines,731 F.2d 909 (D.C.Cir.1984)for further background).

The European Union regulation that deals with "A concentration which creates or strengthens a dominant position...(impeding)competition...in the common market..." is:

European courts addressing a patent issue are generally more favorable to patent holders than U.S.courts.

Compare and contrast the EU implementation within the community test with the U.S.effects test.

Under the single economic unit concept,the European Court of Justice imputes the behavior of a 51 percent-owned subsidiary to the parent.

EU competition law applies only to agreements and transactions that:

The European Commission is even less flexible with respect to know-how transfer agreements than it is to patent licenses.