CASE STUDY

Case Study

Case Study

Preface

I am the business adviser (BA) of Get it Done Quickly Inc (GIDQ) which is a multinational business organization based outside the European union (EU) but heavily engaged in cross border trading within the EU and worldwide normally one play a leading role in advising on and deciding market strategy, including forward planning. Most unfortunately, due to car accident I have been away from work for six months. In my absence, for reasons beyond my control, the management of GET IT DONE QUICKLY INC decided to delegate my responsibilities in all matters to my assistant. On my return I discover the following project for consideration, which I know has European Union Dimension'.

My assistant appears not to have been aware of the requirements of EU competition policy and justifies this Omission by explaining that the entire management had requested him to consider the bigger the picture of the entire global market. For me It is now urgent to provide immediate supplementary advice to GET IT DONE QUICKLY INC on appropriate action or remedial to safeguard GODQ's commercial interest. At the same time wish to protect not only self, but also my well meaning but uniformed assistant from liability for the loss in profits that are now at risk.

THE PROBLEM

THE Directorate- general IV (DG IV) has concluded an investigation into the marketing activities of GET IT DONE QUICKLY INC and has made the administrative Decision that the monopoly position enjoyed by GET IT DONE QUICKLY INC has been abused; the fine imposed in respect of the abuse is 3,000,000 Euros. The issues on which BA is required to advice include,

Why has DG IV, rather than a national competition policy authority, concluded the investigation?

By what authority does DG IV have the power to impose any such fine?

What steps might GET IT DONE QUICKLY INC take to mitigate (reduce the severity of) the fine?

If the action taken (if any is possible) does not persuade DG IV to reduce the fine imposed, must GET IT DONE QUICKLY INC pay the fine?

Can the fine be challenged and if so, on what grounds?

When, if ever, does DG IV have the power to investigate marketing activities conducted outside the EU?

1. Why has DG IV, rather than a national competition policy authority, concluded the investigation?

Since, Directorate- general has more powers and considered to be on the highest executive officer level. Also in European Commission, each department (called a Directorate-General) is headed by a non-political Director-General. Also The Directorate General IV “Customs and International as well as Organizational Tax Issues” secures tax revenues, achieves the necessary international presence and service, efficiency and customer orientation and, in addition, is viewed as being a stimulus for the Tax Administration therefore Directorate General IV was considered to be the better option to conclude the investigations for this case instead of National Policy Authority.

2. By what authority does DG IV have the power to impose any such fine?

To answer this question we first look at some tasks of Directorate Genera as ...