ABUSE OF A DOMINANT POSITION - Advocatennet

ABUSE OF A DOMINANT POSITION - Advocatennet ABUSE OF A DOMINANT POSITION - Advocatennet

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III. Exclusionary abuses: recent pricing cases -two post-Discussion Paper cases - • Loyalty rebates: Tomra (2006) – Fidelity-building: the so-called suction effect (challenged by Tomra) – Exclusionary effect: empirical evidence (e.g. stability of Tomra’s market share, no successful market entry, more sales during the period where more exclusionary practices were at play). • Margin squeeze: Telefonica (2007) – The benchmark: the smaller-but-equally-efficient competitor – Exclusionary effect: empirical evidence (e.g. Telefonica’s growth rates surpassing by far that of its competitors) and harm on consumers (e.g. Spanish broadband access costs 20% more than the EU-15 average. 16

III. Exclusionary abuses: recent pricing cases<br />

-two post-Discussion Paper cases -<br />

• Loyalty rebates: Tomra (2006)<br />

– Fidelity-building: the so-called suction effect (challenged by Tomra)<br />

– Exclusionary effect: empirical evidence (e.g. stability of Tomra’s market share, no successful<br />

market entry, more sales during the period where more exclusionary practices were at play).<br />

• Margin squeeze: Telefonica (2007)<br />

– The benchmark: the smaller-but-equally-efficient competitor<br />

– Exclusionary effect: empirical evidence (e.g. Telefonica’s growth rates surpassing by far that<br />

of its competitors) and harm on consumers (e.g. Spanish broadband access costs 20%<br />

more than the EU-15 average.<br />

16

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