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Ex.8 CD 2.13 Listen to Rory Taylor talking about ways in which companies can break competition law, and answer the questions.

1 Which of the following things does Rory Taylor say?

Sometimes there isn't much competition in a market because:

a there are large companies which have done nothing wrong, but just acted in the

ways successful companies do.

b companies abuse their dominant position,

с companies are collaborating and working on projects together,

d rival companies agree to charge the same prices.

2 Which two official bodies does he mention?

3 What can companies be fined 10% of their turnover for?

Ex.9 Discussion

· Rory Taylor mentions 'abuse of a dominant position', but he doesn't explain this. What do you think it means? Can you give an example?

· Do you know why the European Competition Commission started a case against Microsoft?

Ex.10 Role play: Is this company restricting competition?

Imagine that a very successful company is being investigated by your country's Competition Commission or Antitrust Authority. The company argues that it is successful because it is efficient and innovative, and provides products or services that customers want, and which are better than those offered by competitors. The competition authority is worried that the company is so large that it is restricting competition.

Two representatives of the company meet a representative of the competition authority. Your teacher will give you a role.

But first, as a class, choose an industry (e.g. computer software, mobile/cell phone networks, pharmaceuticals, retail banking, insurance, satellite television, groceries, furniture, etc.) in which there is an imaginary, highly successful company to investigate and defend.

Ex.11Writing

Write a short summary (150-200 words) of the company's arguments in defense of its high market share, or the competition authority's reasons for recommending an investigation into the company.

GLOSSARY

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