Canada Automotive Corp., a business based in Canada, enters into distribution
agreements with 3 different car dealerships in Europe, and promises them each their
own exclusive territory. To ensure exclusivity, each dealer must agree not to sell cars
to purchasers outside their designated sales region within the EU. How would EU
competition authorities view this arrangement?
EU competition authorities have no jurisdiction over a Canadian business.
This arrangement is a form of prohibited abuse of dominant position.
This arrangement segments the single European market and is a form of
prohibited concerted action.
This arrangement is a legitimate method of doing business and not a problem
under EU competition law.