L11:Abuse of a Dominant Position: “Monopolies”

Question 1

what is definition of abuse?

Answer 1

102

a) Directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;
b) Limiting production, markets or technical development to the prejudice of consumers;
c) Applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;
d) Making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage have no connection with the subject of such contracts.

Question 2

what is indicator for dominant position?

Answer 2

the market share is under 30% and not a dominant position or above 75% when they usually have a dominant position.

Question 3

other Indicators of dominant position?

Answer 3

• Market structure?  share of nearest competitor?
• Competitive advantages such as IP rights (trade marks, patents) or range of products.
• Resources? Financial and technological.
• Vertical integration?  Control of supply chain?
• Conduct?  has company abused its position?

Question 4

what is dominant position on relevant market?

Answer 4

Relevant product market

Relevant geographic market

Question 5

what is relevant product market and how can you measure it?

Answer 5

includes those products that are sufficiently interchangeable  ‘Substitutable’.

SSNIP- test

Question 6

what is the supply substitution

Answer 6

The supply substitution is about the producers’ capability of supplying similar products. can be answered by asking: ‘Can any other producer easily and cheaply enter the product market by simply adapting their production’?

Question 7

what is geographic market?

Answer 7

that substantial part of the internal market where dominant firm abuses its dominant position.

Substantial:
= One Member State or part of a larger Member State.