8. Competition Law II: Abuse Of Dominant Position Flashcards
Hilti v Commission
Nail guns sufficiently unique as product to occupy separate part of industrial fasteners market
Notice on Definition of Relevant Market for the Purposes of Community Competition Law
Governs concept of relevant market
Relevant product market (RPM)
Relevant geographic market (RGM)
Relevant temporal market (RTM)
United Brands v Commission
Demand substitutability
Bananas held to occupy distinct sub-market, separate from overall fruit market
Dominant position relates to position of economic strength enjoyed by undertaking
Degree of vertical integration can be relevant for determining dominance
RGM is area where conditions of competition applying to products are sufficiently homogenous
Small but Significant Non-Transitory Increase in Price (SSNIP) test
If sufficient number of consumers would switch to another product to make price rise (of 5-10%) unprofitable, relevant product market which test was applied will have been too narrowly defined
Euroemballage Corn and Continental Can Co
Supply substitutability
Single market for containers for preserved foods (not three separate markets, as Commission had argued)
Michelen NV v Commission
Two markets for tyres, one for heavy and one for light vehicles
No demand substitution and no elasticity of supply
Single MS can form RGM
Microsoft v Commission
Three markets - PC OS, Work Server OS, media player
Low supply substitutability
‘Tie-in’ agreements
Dominant undertaking agrees to supply someone (usually distributor) only if agrees to accept further supplementary good - held to be an abuse
Hugin Kassaregister v Commission
Aftermarkets
There is separate market for spare parts for H cash registers
Alsatel v Novasam
Difficult to argue region is RGM
B&I Line v Sealink
Port of Holyhead is RGM
Essential facility doctrine
Sealink uses control of port to disrupt rival - held to be abusive
ABG Oil
Sudden shortage of oil during OPEC crisis held to transform market for petrol (RTM)
Società Italiana Vetro
Joint dominance of market possible (though not here)
Factors for establishing dominance
Market share Intellectual Property rights Superior technology Wealth of capital as barrier to entry Vertical integration Sophisticated distribution and sales network Brand identification
Commercial Solvents Corporation v Commission
Refusal to supply competitor with material necessary for manufacture of end-product held to be abusive
Hoffman-La Roche
Granting rebates may be abuse where stops competitors from entering market
