by 21st Century Competition | May 7, 2014
Economies of scale occur when firms achieve per unit cost savings by producing more of a good or service (that is, when average costs decrease as output increases). Such effects arise when it is possible to spread fixed costs over a higher output. Examples of scale...
by 21st Century Competition | May 7, 2014
Economies of scope occur when firms achieve cost savings by increas- ing the variety of goods and services that they produce (joint produc- tion). Such effects arise when it is possible to share components and to use the same facilities and personnel to produce...
by 21st Century Competition | May 7, 2014
EEA stands for European Economic Area. The EEA agreement, to which all EU Member States and the EFTA members Iceland, Liechtenstein and Norway are parties, entered into force on 1 January 1994. The objective of the agreement is to establish a dynamic and homogeneous...
by 21st Century Competition | May 7, 2014
A necessary condition for the application of EU antitrust rules. Articles 101 and 102 of the EC Treaty are only applicable if there may be a direct or indirect, actual or potential influence on the flow or pattern of trade between at least two Member States of the EU....
by 21st Century Competition | May 7, 2014
According to this doctrine, domestic competition laws are applicable to foreign firms — but also to domestic firms located outside the State’s territory, when their behaviour or transactions produce an ‘effect’ within the domestic territory. The ‘nationality’ of firms...
