2012 ZA Q5
Kevin runs a successful chain of amusement arcades in the United Kingdom. He decides to
expand into ‘Europe’. His initial research shows that entrance fees charged in such centres as
already exist in the Baltic states (Estonia, Latvia, Lithuania) are uniformly high. He contacts some
of the centres, explaining that his centres will be aimed at a somewhat different market from their
existing ones, which mainly cater for the young ‘mass’ market, whereas Kevin is aiming at
wealthier and more mature players. Kevin does not wish to annoy the other centres, and thinks
that a good relationship with them is important and might be mutually beneficial. Consequently, he
wishes to discuss setting his prices at the ‘right’ level. Consider possible breaches of EU
competition law which might arise.
2013 ZB Q ZA Q3
Alpha Plc. and Beta Ltd. make milk chocolate to the traditional ‘Choco’ recipe, and their products
are popular mainly in the United Kingdom and Ireland. These products are also bought by
consumers in France, Belgium and some other Member States of the European Union, although
consumers in these 6 other States generally prefer milk chocolate made to a different recipe.
Alpha has a 30% market share, Beta has a 10% market share and other manufacturers each have
less than a 5% market share of the ‘Choco’ recipe chocolate in the EU. This market structure has
been approximately the same for the last 10 years. Alpha has a longstanding agreement with Beta
which allows Beta to use some of its distribution facilities, at a certain price, and recently other
manufacturers of ‘Choco’ recipe chocolate bars have reached agreement with Alpha to use these
same distribution facilities. However one of these companies, Zocco, has found out that the price
paid by Beta under this agreement is 10% less than the price paid by the other companies. Advise
Zocco.
2015 ZB Q ZA Q4
Strong Steel and Steel United are two European steel producing companies. There are eight steel
producers in Europe. In terms of market share in Europe; Strong Steel has 41% and Steel United
has 30%. In order to increase its sales in Poland, Romania, and the Czech Republic, Strong Steel
offers a very attractive discounted price to new customers in these countries of 120 Euros per ton.
Some managers at Strong Steel have been participating in meetings with Steel United in order to
discuss a marketing strategy to survive the economic crisis. One of the meetings was attended by
several other important European steel producers and all those present at the meeting agreed to
increase the price of steel by 0.5%. Strong Steel has increased the price accordingly starting this
month. You are employed by Strong Steel to advise them whether offering discounts in Poland,
Romania, and the Czech Republic is compatible with EU competition law. Strong Steel also
wonders whether the decision to increase the price by 0.5% could contravene EU competition law.
2016 ZB Q ZA Q3
Recy-Cel is a special type of cellulose manufactured from recycled material. There are three main
producers of Recy-Cel in Europe. TreeHugger, based in the UK, is the largest producer with a
market share of 44%. A German manufacturer, RecyHandelsgesellschaft, has a market share of
20%, a Spanish manufacturer, CelEspaña, has a market share of 20%, and several other small
producers represent 16% of the market. TreeHugger wishes to increase its market share and
seeks your advice on the applicability of EU competition law to the following proposed strategies:
(a) It wants to launch an extensive publicity campaign in Spain and Germany to announce some
drastically reduced prices for Recy-Cel. Specifically it wants to offer very attractive discounts
to new customers in these Member States.
(b) At the initiative of RecyHandelsgesellschaft, it participated in several meetings with three
smaller producers and RecyHandelsgesellschaft in order to construct a ‘rational joint 4
marketing’ plan that would allow each manufacturer to ‘more efficiently concentrate’ their sales
efforts in certain geographical zones and withdraw from other areas.
While RecyHandelsgesellschaft is supposed to sell in Germany and Austria, TreeHugger is
supposed to concentrate on the Irish, British and Scandinavian markets, whereas the three other
producers will concentrate on new markets in the 12 new Member States. The primary advantage
, of this plan is to avoid ‘wasteful rivalry’ between the companies within the same geographical
area.
2017 ZAB Q7
India Chemical is an Indian company active in the production of industrial chemicals. India
Chemical is a leading producer of industrial chemicals used in the production of domestic cleaning
agents worldwide. India Chemical has extensive business operations in the EU, and it supplies its
products to all major manufacturers of cleaning agents in the different EU Member States. The
industrial chemicals market is considered a stable one and no other company has attempted to
enter into this market in recent years. India Chemical’s share in the supply of industrial chemicals
used in the production of domestic cleaning agents in the EU is about 80%; its market share in
relation to the production of all types of industrial chemicals in the EU, however, is considerably
lower than this. Two years ago, this market share was about 50%. India Chemical has a number
of competitors in the EU but none of them holds a market share higher than 2%. Advise India
Chemical on the application of EU competition law to each of the following proposals:
(a) They would like to offer their customers favourable discounts on future purchases of all types
of industrial chemicals purchased from them;
(b) They are proposing to refuse to supply new customers who do not commit to purchasing
exclusively from them; and
(c) They are proposing to raise their prices by 40%. Their customers are not happy with this
possible price increase but they believe that there is little they can do.
2019 ZA Q8
Children’s Help is a charity established in the Netherlands. They share the same objective, the
protection of children, with Kid’s Hotline, a charity established in a nearby town in Germany. In
order to raise money for their activities, both charities sell knitted hats. The hats are quite
successful and are sold in shops in the EU. In the Netherlands and Belgium, Children’s Help holds
around 6 per cent of the market for knitted hats, while Kid’s Hotline holds around 2 per cent. In
Germany, Kid’s Hotline holds around 5 per cent of the market, and Children’s Help holds about
3.5 per cent. Both charities hold negligible market shares in other EU Member States. Worried
about its declining reputation at home, Kid’s Hotline approaches Children’s Help with a proposal to
stop selling to Germany, promising that they will not sell to the Netherlands and Belgium either.
Children’s Help is tempted to agree but has some doubts as to whether the agreement breaches
EU competition law.
Advise Children’s Help.
2019 ZB Q8
‘Le Mirage du Mariage’ is a wedding planner company, established in France. They expand to
other Member States, offering a wide range of services and products connected to the
organisation of a wedding. They soon hold around 15 per cent of the EU market for wedding
planning. Since 2016, they have arranged affordable honeymoons for around 45 per cent of the
couples that got married, each year, in Europe. They are now launching a new comprehensive
wedding package ‘From Wedding Dress to Family Life’, which provides attractively priced
honeymoon deals to couples who decide to purchase all wedding services and products from ‘Le
Mirage du Mariage’. Sun Travel is a German travel company who believes they have lost many of
their customers because of the very favourable honeymoon deals offered by ‘Le Mirage du
Mariage’. They hold around 39 per cent of the EU market for travel packages but in 2018 they sold
very few honeymoon packages. Sun Travel are very worried about the new comprehensive
wedding package and believe that ‘Le Mirage du Mariage’ is breaching EU competition law.
Advise Sun Travel.
Kevin runs a successful chain of amusement arcades in the United Kingdom. He decides to
expand into ‘Europe’. His initial research shows that entrance fees charged in such centres as
already exist in the Baltic states (Estonia, Latvia, Lithuania) are uniformly high. He contacts some
of the centres, explaining that his centres will be aimed at a somewhat different market from their
existing ones, which mainly cater for the young ‘mass’ market, whereas Kevin is aiming at
wealthier and more mature players. Kevin does not wish to annoy the other centres, and thinks
that a good relationship with them is important and might be mutually beneficial. Consequently, he
wishes to discuss setting his prices at the ‘right’ level. Consider possible breaches of EU
competition law which might arise.
2013 ZB Q ZA Q3
Alpha Plc. and Beta Ltd. make milk chocolate to the traditional ‘Choco’ recipe, and their products
are popular mainly in the United Kingdom and Ireland. These products are also bought by
consumers in France, Belgium and some other Member States of the European Union, although
consumers in these 6 other States generally prefer milk chocolate made to a different recipe.
Alpha has a 30% market share, Beta has a 10% market share and other manufacturers each have
less than a 5% market share of the ‘Choco’ recipe chocolate in the EU. This market structure has
been approximately the same for the last 10 years. Alpha has a longstanding agreement with Beta
which allows Beta to use some of its distribution facilities, at a certain price, and recently other
manufacturers of ‘Choco’ recipe chocolate bars have reached agreement with Alpha to use these
same distribution facilities. However one of these companies, Zocco, has found out that the price
paid by Beta under this agreement is 10% less than the price paid by the other companies. Advise
Zocco.
2015 ZB Q ZA Q4
Strong Steel and Steel United are two European steel producing companies. There are eight steel
producers in Europe. In terms of market share in Europe; Strong Steel has 41% and Steel United
has 30%. In order to increase its sales in Poland, Romania, and the Czech Republic, Strong Steel
offers a very attractive discounted price to new customers in these countries of 120 Euros per ton.
Some managers at Strong Steel have been participating in meetings with Steel United in order to
discuss a marketing strategy to survive the economic crisis. One of the meetings was attended by
several other important European steel producers and all those present at the meeting agreed to
increase the price of steel by 0.5%. Strong Steel has increased the price accordingly starting this
month. You are employed by Strong Steel to advise them whether offering discounts in Poland,
Romania, and the Czech Republic is compatible with EU competition law. Strong Steel also
wonders whether the decision to increase the price by 0.5% could contravene EU competition law.
2016 ZB Q ZA Q3
Recy-Cel is a special type of cellulose manufactured from recycled material. There are three main
producers of Recy-Cel in Europe. TreeHugger, based in the UK, is the largest producer with a
market share of 44%. A German manufacturer, RecyHandelsgesellschaft, has a market share of
20%, a Spanish manufacturer, CelEspaña, has a market share of 20%, and several other small
producers represent 16% of the market. TreeHugger wishes to increase its market share and
seeks your advice on the applicability of EU competition law to the following proposed strategies:
(a) It wants to launch an extensive publicity campaign in Spain and Germany to announce some
drastically reduced prices for Recy-Cel. Specifically it wants to offer very attractive discounts
to new customers in these Member States.
(b) At the initiative of RecyHandelsgesellschaft, it participated in several meetings with three
smaller producers and RecyHandelsgesellschaft in order to construct a ‘rational joint 4
marketing’ plan that would allow each manufacturer to ‘more efficiently concentrate’ their sales
efforts in certain geographical zones and withdraw from other areas.
While RecyHandelsgesellschaft is supposed to sell in Germany and Austria, TreeHugger is
supposed to concentrate on the Irish, British and Scandinavian markets, whereas the three other
producers will concentrate on new markets in the 12 new Member States. The primary advantage
, of this plan is to avoid ‘wasteful rivalry’ between the companies within the same geographical
area.
2017 ZAB Q7
India Chemical is an Indian company active in the production of industrial chemicals. India
Chemical is a leading producer of industrial chemicals used in the production of domestic cleaning
agents worldwide. India Chemical has extensive business operations in the EU, and it supplies its
products to all major manufacturers of cleaning agents in the different EU Member States. The
industrial chemicals market is considered a stable one and no other company has attempted to
enter into this market in recent years. India Chemical’s share in the supply of industrial chemicals
used in the production of domestic cleaning agents in the EU is about 80%; its market share in
relation to the production of all types of industrial chemicals in the EU, however, is considerably
lower than this. Two years ago, this market share was about 50%. India Chemical has a number
of competitors in the EU but none of them holds a market share higher than 2%. Advise India
Chemical on the application of EU competition law to each of the following proposals:
(a) They would like to offer their customers favourable discounts on future purchases of all types
of industrial chemicals purchased from them;
(b) They are proposing to refuse to supply new customers who do not commit to purchasing
exclusively from them; and
(c) They are proposing to raise their prices by 40%. Their customers are not happy with this
possible price increase but they believe that there is little they can do.
2019 ZA Q8
Children’s Help is a charity established in the Netherlands. They share the same objective, the
protection of children, with Kid’s Hotline, a charity established in a nearby town in Germany. In
order to raise money for their activities, both charities sell knitted hats. The hats are quite
successful and are sold in shops in the EU. In the Netherlands and Belgium, Children’s Help holds
around 6 per cent of the market for knitted hats, while Kid’s Hotline holds around 2 per cent. In
Germany, Kid’s Hotline holds around 5 per cent of the market, and Children’s Help holds about
3.5 per cent. Both charities hold negligible market shares in other EU Member States. Worried
about its declining reputation at home, Kid’s Hotline approaches Children’s Help with a proposal to
stop selling to Germany, promising that they will not sell to the Netherlands and Belgium either.
Children’s Help is tempted to agree but has some doubts as to whether the agreement breaches
EU competition law.
Advise Children’s Help.
2019 ZB Q8
‘Le Mirage du Mariage’ is a wedding planner company, established in France. They expand to
other Member States, offering a wide range of services and products connected to the
organisation of a wedding. They soon hold around 15 per cent of the EU market for wedding
planning. Since 2016, they have arranged affordable honeymoons for around 45 per cent of the
couples that got married, each year, in Europe. They are now launching a new comprehensive
wedding package ‘From Wedding Dress to Family Life’, which provides attractively priced
honeymoon deals to couples who decide to purchase all wedding services and products from ‘Le
Mirage du Mariage’. Sun Travel is a German travel company who believes they have lost many of
their customers because of the very favourable honeymoon deals offered by ‘Le Mirage du
Mariage’. They hold around 39 per cent of the EU market for travel packages but in 2018 they sold
very few honeymoon packages. Sun Travel are very worried about the new comprehensive
wedding package and believe that ‘Le Mirage du Mariage’ is breaching EU competition law.
Advise Sun Travel.
