¶ … Electronics, Ltd. WORLD ELECTRONICS LTD

Scenario: World Electronics Ltd. is a multinational company, offering top quality products at affordable prices. In recent months, due to a significant number of complaints, some important legal issues have been brought to the attention of the directors of the company. You have been asked to advise the company and its subsidiaries on their legal position in relation to the following legal issues.

Electronics Ltd. is a German company that manufactures and supplies the popularly used LED energy saving bulb that is sold under its unique brand name "OKN." At present, the company has 65% of the German, UK and French market for the "OKN" LED energy saving bulb. The company's EU share of the market for energy saving bulbs is estimated to be 20% and 10% for all energy saving technologies. Using its extensive financial resources generated from...

has developed a very efficient distribution system. The company's strong market position has enabled it to offer discounts to some of its French customers, negotiated separately with individual suppliers, and based on the size of the orders placed. Recently, one of Electronics' competitors, X-Systems Ltd., discovered that Electronics Ltd. is offering huge discounts to X-System's existing customers if they agree to switch their custom to Electronics Ltd. over the next 18 months. X-Systems Ltd. manufacture and supply the high quality diffusion chip XZ 4 used in the production of the energy saving bulbs. By February 2009, X-Systems Ltd. had captured a 10% share of the UK and German market for the diffusion chips and became popular among manufacturers of the energy saving products. The directors of Electronics Ltd. saw the popularity of the XZ 4 diffusions chip as…