Competition Law Training For Managers

1.

What is the main purpose of the Competition Law?

A.

Prohibiting cartels
B.

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

Protecting European companies from competition from outside the EU

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

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.

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2.

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

A.

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

Abuse of a dominant position
C.

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

All of the above

Correct Answer
D. All of the above

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.

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3.

What are possible risks from non-compliance?

A.

Substantial fines and work disruptions
B.

Higher taxes and cancellation of business licenses
C.

All of the above

Correct Answer
A. Substantial fines and work disruptions

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.

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4.

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

A.

When you make pricing agreements with a third party
B.

When you make price arrangements with another Alphatron Marine office
C.

When you request prices with a supplier

Correct Answer
A. When you make pricing agreements with a third party

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.

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5.

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?

A.

Yes, as both ports will still have a service provider and it will be clear where the customers should turn to with his request
B.

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

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

Correct Answer
B. No, because that would be market sharing and be deemed anti- competitive

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.

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6.

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?

A.

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

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

It is allowed to tell distributors to only actively approach potential customers is their own area, but passive sales (for outside their own area) must be allowed at all times

Correct Answer
C. It is allowed to tell distributors to only actively approach potential customers is their own area, but passive sales (for outside their own area) must be allowed at all times

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.

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7.

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

A.

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

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

Correct Answer
A. Hereby I confirm that I have read the PowerPoint about Competition Law training part 1

8.

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

A.

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

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

Correct Answer
A. Hereby I confirm that I have read the PowerPoint about Competition Law training part 2