Abuse of Dominant Position in EU Competition Law: Quizzes and Practice Questions

Question 1

Identify which of these scenarios could potentially constitute an abuse of dominance, according to EU competition law.

Accepted Answer

Setting prices below operational costs with the intention of eliminating rivals.

Accepted Answer

Requiring customers to purchase an additional product in order to acquire a primary product.

Accepted Answer

Granting exclusive distribution rights to a specific reseller.

Answer

Charging varying prices to different customers for the same product.

Question 2

Predatory pricing occurs when a dominant undertaking sets prices at a level that:

Accepted Answer

Is below its own cost of production

Answer

Is below the prices charged by its competitors

Answer

Is profitable in the long run

Answer

Is above its own cost of production

Question 3

Which of the following factors is NOT considered in determining whether an undertaking has a dominant position in the relevant market?

Accepted Answer

Company reputation

Answer

Market share

Answer

Barriers to entry

Answer

Buyer power

Question 4

Which of the following is NOT a specific type of exclusive dealing arrangement?

Accepted Answer

Bundling

Answer

Tie-in

Answer

Full-line forcing

Answer

Exclusive purchase

Question 5

Which of the following is an example of objective justification under the Abuse of Dominance Regulation?

Accepted Answer

Promoting innovation

Answer

Preserving market share

Answer

Matching competitor prices

Answer

Raising prices to maximize profits

Question 6

What is the main reason for prohibiting dominant firms from engaging in predatory pricing under EU competition law?

Accepted Answer

To protect market efficiency and consumer welfare

Answer

To prevent unfair competition

Answer

To safeguard individual competitors

Question 7

Which actions are considered primary categories of abuse of dominant position under EU competition law?

Accepted Answer

Price discrimination, tying, exclusive dealing, and predatory pricing

Answer

Refusal to deal, price squeezing, and bundled pricing

Answer

Market foreclosure, leveraging, and excessive pricing

Question 8

In EU competition law, which element is essential to establish an abuse of dominant position?

Accepted Answer

Significant market power

Answer

Unfair pricing

Answer

Consumer harm

Question 9

Which of the following is NOT an example of conduct that may constitute an abuse of a dominant position under EU competition law?

Accepted Answer

Vertical integration

Answer

Predatory pricing

Answer

Tying

Answer

Exclusive dealing

Question 10

In EU competition law, how does market power contribute to determining an abuse of dominant position?

Accepted Answer

Market power is a necessary but not sufficient condition for establishing an abuse of dominant position.

Answer

Market power alone is sufficient to prove an abuse of dominant position.

Answer

Market power is not relevant in determining an abuse of dominant position.

Answer

Market power is only considered when establishing a firm's dominance in specific markets.

Question 11

The 'essential facility' doctrine in EU competition law:

Accepted Answer

Prohibits dominant firms from denying access to infrastructure or resources that are essential for competition

Answer

Allows dominant firms to charge excessive prices for inputs that are indispensable to competitors

Answer

Defends dominant firms engaging in anti-competitive conduct if necessary to protect intellectual property rights

Answer

Requires dominant firms to share their profits with competitors

Question 12

Which of the following is NOT prohibited as an abuse of dominance under EU law?

Accepted Answer

Unfair pricing

Answer

Predatory pricing

Answer

Tying

Answer

Exclusive dealing

Question 13

The 'consumer welfare' standard in EU competition law:

Accepted Answer

Focuses on whether conduct harms consumers

Answer

Requires firms to maximize short-term profits

Answer

Allows anti-competitive conduct if it promotes innovation

Answer

Prioritizes the interests of small businesses

Question 14

The 'rule of reason' approach in EU competition law involves:

Accepted Answer

Balancing the pro-competitive and anti-competitive effects of conduct

Answer

Prohibiting all anti-competitive conduct by dominant firms

Answer

Presuming dominant firm conduct to be anti-competitive unless proven otherwise

Answer

Defending anti-competitive conduct if necessary to protect market share

Question 15

The 'safe harbor' provision in the EU merger control regulation aims to:

Accepted Answer

Allow the Commission to focus on mergers with potential competition concerns

Answer

Exempt small mergers from notification requirements

Answer

Provide certainty about the legality of mergers

Answer

Encourage mergers that create economies of scale

Question 16

Which article in the Treaty on the Functioning of the European Union (TFEU) specifically prohibits the abuse of dominant position?

Accepted Answer

Article 102

Answer

Article 101

Answer

Article 103

Answer

Article 104

Question 17

What is the economic rationale for the EU competition law prohibition on the abuse of dominant positions, and how does it align with the broader objectives of EU competition law?

Accepted Answer

To protect consumer welfare, promote market efficiency, and foster innovation.

Answer

To prevent government interference in the market.

Answer

To promote the growth of small and medium-sized enterprises (SMEs).

Question 18

Which of the following is NOT considered an abuse of a dominant position by a firm under EU competition law?

Accepted Answer

Offering discounts to large volume purchasers

Answer

Engaging in predatory pricing

Answer

Tying the sale of one product to the purchase of another

Answer

Imposing exclusive dealing agreements

Question 19

What is the crucial element required to demonstrate predatory pricing?

Accepted Answer

Pricing goods or services below cost with the intent to eliminate competitors and gain market dominance

Answer

High-profit margins

Answer

Unfair pricing compared to competitors

Answer

Substantial market share

Question 20

Which practice is considered a tying arrangement?

Accepted Answer

Requiring customers to purchase a bundled product or service, even if they may prefer to purchase only one component

Answer

Offering discounts for multiple purchases of the same product

Answer

Setting the price of a product or service above market value

Answer

Granting exclusive distribution rights to a single reseller

Question 21

What is the primary purpose of prohibiting exclusive dealing in EU competition law?

Accepted Answer

To prevent firms with substantial market power from excluding or hindering competitors, thereby safeguarding market competition

Answer

To protect intellectual property rights

Answer

To stimulate innovation and technological advancements

Answer

To reduce consumer prices

Question 22

When determining whether a firm holds a dominant position, which factors are typically considered by the European Commission?

Accepted Answer

Market share, barriers to entry for potential competitors, and the firm's conduct

Answer

The size of the firm's workforce

Answer

The firm's global market share

Answer

The firm's profit margins

Question 23

Which of the following remedies can the European Commission impose upon companies found to have engaged in abusive practices?

Accepted Answer

Fines, structural remedies (such as divestiture), and behavioral injunctions

Answer

Imprisoning company executives

Answer

Withdrawing business licenses

Answer

Seizing company assets

Question 24

What is the key distinction between a 'de minimis' infringement and a full-blown abuse of dominant position?

Accepted Answer

The nature and severity of the negative impact on competition

Answer

The specific industry or sector involved

Answer

The duration of the infringement

Answer

The size and market share of the dominant firm

Question 25

Can a dominant firm be held legally responsible for an abuse of dominance even if it does not directly engage in the anti-competitive conduct?

Accepted Answer

Yes, if it facilitates or encourages such conduct by other entities

Answer

Only if the firm has been previously convicted of anti-competitive practices

Answer

Only if it has a clear and specific intention to harm competitors

Answer

No, the firm can only be held liable if directly involved in the anti-competitive conduct

Question 26

In EU competition law, when may an exception to the prohibition on abuse of dominant position be granted?

Accepted Answer

When the efficiency gains resulting from the dominant firm's actions clearly outweigh the potential harm to competition

Answer

When the dominant firm is a small or medium-sized enterprise (SME)

Answer

When the abuse of dominance benefits consumers

Answer

When the dominant firm is a state-owned entity