Slides Louis

Information about Slides Louis

Published on February 24, 2008

Author: Danielle

Source: authorstream.com

Content

The Modernisation of Article 82 The concept of dominance :  The Modernisation of Article 82 The concept of dominance Frédéric P. Louis Second annual conference of the GCLC 16 June 2005 The concept of dominance :  The concept of dominance The legal concept « a position of economic strength enjoyed by an undertaking which enables it to prevent effective competition being maintained on the relevant market by affording it the power to behave to an appreciable extent independently of its competitors, customers and ultimately of its consumers » The economic concept Substantial market power Power on prices and ability to restrict output (cfr. Hoffmann-La Roche) The concept of dominance :  The concept of dominance Market definition Step required by the case law (Continental Can, Coca Cola) Economists tell us that this is not always required … but Do we ever have the data? Useful as a reminder of the need to appraise all relevant market circumstances Market definition, potential competition and supply-side considerations Overly narrow definitions (‘brass instruments for British-style brass bands’, ‘premium branded jeans in Belgium’) The concept of dominance :  The concept of dominance How do we define the market? Is the SSNIP test ever used in an Art. 82 context? In Commission questionnaires (« would you switch? ») but not in decisions Can it? How do we deal with the Cellophane Fallacy? What other means are available beyond the traditional approach (product characteristics and intended uses)? The concept of dominance :  The concept of dominance Factors of dominance: the role of market shares “[…] although the importance of the market shares may vary from one market to another the view may legitimately be taken that very large shares are in themselves, and save in exceptional circumstances, evidence of the existence of a dominant position.  An undertaking which has a very large market share and holds it for some time, by means of the volume of production and the scale of the supply which it stands for – without those having much smaller market shares being able to meet rapidly the demand from those who would like to break away from the undertaking which has the largest market share – is by virtue of that share in a position of strength which makes it an unavoidable trading partner and which, already because of this secures for it, at the very least during relatively long periods, that freedom of action which is the special feature of a dominant position” (Hoffmann-La Roche) The concept of dominance :  The concept of dominance Market shares as evidence of dominance Hoffmann-La Roche assumes that there are barriers to entry/expansion in all but exceptional cases Akzo: 50% is a « very large » market share Shift of the burden of proof a very large market share cannot relieve the regulator from a comprehensive economic analysis What about national courts? Negative presumption when <40% (OFT guidelines) The Commission always starts its analysis by recalling Akzo (Microsoft at para. 435) The concept of dominance :  The concept of dominance Other « factors » of dominance This is not a checklist! Proper analytical framework: check for the presence of barriers to entry/expansion which prevent (potential) competitor from placing a significant constraint on the allegedly dominant player If there are no barriers to entry, 100% market share does not give you any market power When reviewing « traditional » factors, always enquire whether they are unique to the alleged dominant firm and whether they play a significant role on the market concerned The concept of dominance :  The concept of dominance Traditional factors Legal barriers to entry Sunk costs/barriers to expansion (United Brands) there may be high barriers to entry, but low barriers to expansion (branding, lumpy investments) Economies of scale/scope/network effects (United Brands, BPB, Microsoft) can small players constrain the dominant firm? Superior technology (United Brands, Hilti, Michelin) Is the market innovation-driven? Can the technology be replicated? The concept of dominance :  The concept of dominance Traditional factors (cont.) Control of assets/vertical integration/branding (United Brands, Michelin) Is it essential? Can it be replicated? Portfolio power/product range (Akzo, Michelin, Tetra Pak) Relevant? Unique? Replicable? Barrier to entry (cost savings, raising competitors costs through accross the board rebates)? Overall strength/deep pockets (Michelin, BPB) Hoffmann-La Roche: overall size does not matter Multinational firms are often less « free » than familiy businesses capital markets deficiencies The concept of dominance :  The concept of dominance Traditional factors (cont.) Behavioural factors (United Brands, Michelin) Circularity : show me an abuse … only for behaviour which is not feasible and profitable without market power Earlier findings of dominance Indicative only (Coca Cola) The concept of dominance :  The concept of dominance Buyer power Countervailing buyer power must be assessed (Italian Flat Glass) Nuisance power Does not have to mean that buyer is dominant The concept of dominance :  The concept of dominance Superdominance and « unavoidable trading partner » Unavoidable trading partner (BA, Michelin) Synonimous to market power (Hoffmann-La Roche) What makes a customer dependent on the supplier? Superdominance (AG Fennely in CMB, Microsoft) Threshold? Quasi-monopoly? Relevant for abuse - truism: certain behaviour will have more of an impact if it comes from 90% player rather than 50% The concept of dominance :  The concept of dominance Conclusions « Special responsibility » so dominance analysis is important Beware of shortcuts!

Related presentations


Other presentations created by Danielle

American Culture
07. 11. 2007
0 views

American Culture

Seminar Dec 05 06 EvansS
07. 05. 2008
0 views

Seminar Dec 05 06 EvansS

9071
02. 05. 2008
0 views

9071

cas loutraki
02. 05. 2008
0 views

cas loutraki

26904 1
30. 04. 2008
0 views

26904 1

01TaxationNaturalRes ources
28. 04. 2008
0 views

01TaxationNaturalRes ources

UC1006
22. 04. 2008
0 views

UC1006

corpsponsorprogram
18. 04. 2008
0 views

corpsponsorprogram

Diameter Credit Check Mironov
17. 04. 2008
0 views

Diameter Credit Check Mironov

Insurance Needs
16. 04. 2008
0 views

Insurance Needs

EventPlanning
05. 10. 2007
0 views

EventPlanning

MURI NOAAPAP
05. 10. 2007
0 views

MURI NOAAPAP

Chapter3 Overexploitation
10. 10. 2007
0 views

Chapter3 Overexploitation

NSFWkshp10 KoganGPS
12. 10. 2007
0 views

NSFWkshp10 KoganGPS

2006 PC chap1 5
12. 10. 2007
0 views

2006 PC chap1 5

CultureoftheCIS
15. 10. 2007
0 views

CultureoftheCIS

ICCOA IOMDP PP
15. 10. 2007
0 views

ICCOA IOMDP PP

2006BiochemA chap3
15. 10. 2007
0 views

2006BiochemA chap3

CS 595 Presentation
17. 10. 2007
0 views

CS 595 Presentation

landnav
19. 10. 2007
0 views

landnav

GlobalInsightSupplyC hain
22. 10. 2007
0 views

GlobalInsightSupplyC hain

ProfRaulBraes
22. 10. 2007
0 views

ProfRaulBraes

masjid
24. 10. 2007
0 views

masjid

walk21
17. 10. 2007
0 views

walk21

2006 Footwear Conf
25. 10. 2007
0 views

2006 Footwear Conf

protws2 4572
29. 10. 2007
0 views

protws2 4572

0611
30. 10. 2007
0 views

0611

ContactCanberra1
04. 10. 2007
0 views

ContactCanberra1

robert engle
08. 10. 2007
0 views

robert engle

PO Workbenches Data Clean up
22. 10. 2007
0 views

PO Workbenches Data Clean up

Noel Final
12. 10. 2007
0 views

Noel Final

Traina
15. 10. 2007
0 views

Traina

The End of the Cold War
23. 12. 2007
0 views

The End of the Cold War

billah
23. 10. 2007
0 views

billah

CHAPTER 18 1
05. 01. 2008
0 views

CHAPTER 18 1

Constructed Wetlands
07. 01. 2008
0 views

Constructed Wetlands

US invlovemnet in ww2
13. 11. 2007
0 views

US invlovemnet in ww2

usits2001 talk 1
29. 10. 2007
0 views

usits2001 talk 1

Supercomputing
02. 10. 2007
0 views

Supercomputing

Cine y filosofia
24. 10. 2007
0 views

Cine y filosofia

open economy
04. 10. 2007
0 views

open economy

IHEP in EGEE ver4
27. 09. 2007
0 views

IHEP in EGEE ver4

PACS
15. 10. 2007
0 views

PACS

Project Gini
14. 02. 2008
0 views

Project Gini

1Unit 8
24. 02. 2008
0 views

1Unit 8

Management Structure Syria
07. 01. 2008
0 views

Management Structure Syria

DHS COPLINK Data Mining 2003
07. 03. 2008
0 views

DHS COPLINK Data Mining 2003

0815 Branch 0730
12. 03. 2008
0 views

0815 Branch 0730

trudel and nelson
01. 10. 2007
0 views

trudel and nelson

national holocaust memorial day
18. 03. 2008
0 views

national holocaust memorial day

Chapter 14 Powerpoint
26. 11. 2007
0 views

Chapter 14 Powerpoint

viniciuscatao inclusao
02. 11. 2007
0 views

viniciuscatao inclusao

nile climatology
21. 10. 2007
0 views

nile climatology

Roman Spring 2006
31. 12. 2007
0 views

Roman Spring 2006

OPSPanama 1
22. 10. 2007
0 views

OPSPanama 1

FunNight
23. 11. 2007
0 views

FunNight

COrlandi ANCI
24. 10. 2007
0 views

COrlandi ANCI

VisitingUCSF
30. 10. 2007
0 views

VisitingUCSF

Portfolio INFANZIA
02. 11. 2007
0 views

Portfolio INFANZIA

Rejmanek Honza Poster 20061110
03. 10. 2007
0 views

Rejmanek Honza Poster 20061110

Session 2 Mr Hotta ENUM 07
09. 10. 2007
0 views

Session 2 Mr Hotta ENUM 07

embrapa1
23. 10. 2007
0 views

embrapa1

6 ApocaplyticLiterature
01. 10. 2007
0 views

6 ApocaplyticLiterature

dissolving
04. 01. 2008
0 views

dissolving

UUpresEng0706
15. 10. 2007
0 views

UUpresEng0706

ICOPS agarwal 2007 v6
04. 12. 2007
0 views

ICOPS agarwal 2007 v6

Druckman flu presentation
26. 03. 2008
0 views

Druckman flu presentation