For the purposes of the provisions preventing the abuse of a company's dominant market positions, the proper definition of the relevant market is a necessary precondition for any judgment as to allegedly anti-competitive behaviour. This is because, before an abuse of a dominant position is ascertained, it is necessary to establish the existence of a dominant position in a given market, which presupposes that such a market has already been defined.
Which of the following best states how a company's dominant position, if any, will be assessed in relation to the relevant market?
ANALYSIS
The correct answer is option C, congratulations on selecting the correct answer! The UK manufacturer's dominant position, if any, will be assessed in relation to both the relevant product market and the relevant geographical market, therefore option C is the correct answer.
KEY POINTS
Treaty on the Functioning of the European Union (‘TFEU’)
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The Treaty on the Functioning of the European Union (‘TFEU’) came into force on 1 December 2009 following the ratification of the Treaty of Lisbon, which made amendments to the Treaty on European Union and the Treaty establishing the European Community (‘TEC’). The TFEU is an amended and renamed version of the TEC. The TFEU includes enhancements to the social dimension of the European Union. It adds the non-discrimination principle (Article 10 TFEU) and equality between women and men (Article 8 TFEU) to the values of the European Union.
Article 102 TFEU
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Article 102 TFEU governs abusive conduct by dominant undertakings. The possession or strengthening of a dominant position by way of competition does not fall within the scope of the prohibition. Dominance alone is never an offence. The dominance of many global players (such as Microsoft or Intel) is a direct result of their inventions and entrepreneurship. The competition regime generally encourages such efforts as they form the basis of our society’s competitive layout. Therefore, unless there is an abuse, there can be no finding of an infringement of Article 102 TFEU. On the other hand, the provision specifies that the concerned undertaking must have a dominant position in the relevant product market. Accordingly, it does not apply to abusive practices by non-dominant undertakings. Such practices may, of course, be subject to other prohibitions. In essence, Article 102 TFEU stipulates two major requirements: a dominant position and an abuse. If the Commission finds such a dominant position and an abuse it may impose a fine on the dominant undertaking.
MIND MAP
