Competition Law Abuse of Dominance

Question 1

Explain the general structure of determining whether someone is abusing their dominant position?

Answer 1

1. Applicability- does the undertaking have a dominant position
   a.undertaking?
   -Hof. and Els.
   b. Effect on trade of abuse?
   -Any influence direct/ indirect, actual/potential
   c.CBE?(dif for normal competition law in this aspect)
   d.dominance?
   -united brands
   >50% pres. of dominance, but rebutable
   -40%- 50%–> maybe, factores
   -less than 40%–> unlikely to be dominant
   -Market.
2. Abuse (Usually exclusionary)
   -Exclusionary
   -pred. pricing (AKZO Chemie)
   -loyalty rebates (Hoffman- La Roche)
   -Tying(Microsoft)
   -Refusal to deal–> Macgill
3. (objective) Justifications
   -efficiency defence–> benefits customers
   -Special context: threatened by competitiors

Question 2

What is the difference between exclusionary and exploitative abuse

Answer 2

-exploitative–> exploiting constumers
-e.g: too high prices
-Exclusionary abuse–> excluding competitors from market

Question 3

What did the Microsoft Case conclude about Abuse of Dominance

Answer 3

-Tying can be abuse when:
1. Dom. in market of tying product
2. tying and tied products are seperate
3. Customeres can’t get the tying product without the tied product

Question 4

What did the Hoffmann-La-Roche case show about competition law

Answer 4

-Discounts given on condition that customers buy exclusively from dominant firm (H

Question 5

What did McGill conclude about Abuse of Dominance

Answer 5

• Refusal to supply existing customer can be abusive
• denying access 2 something undertaking needs can be abusive if:
  
  1. product is indispensable
  2. refusal prevents a new prod. from emerg.
     3.no objective justification
     4. excl. of all competition

Question 6

What did united brands conclude about abuse of dominance

Answer 6

-Definition

Question 7

What did Akzo Chemie conclude about abuse of dominance

Answer 7

-predatory pricing= abuse of dominance
- more than 50% market share= assumed position of dominance