๐ข ๐๐จ๐ฆ๐ฆ๐ข๐ฌ๐ฌ๐ข๐จ๐ง ๐ฉ๐ฎ๐๐ฅ๐ข๐ฌ๐ก๐๐ฌ ๐๐ซ๐๐๐ญ ๐ ๐ฎ๐ข๐๐๐ฅ๐ข๐ง๐๐ฌ ๐จ๐ง ๐๐ฑ๐๐ฅ๐ฎ๐ฌ๐ข๐จ๐ง๐๐ซ๐ฒ ๐๐๐ฎ๐ฌ๐๐ฌ ๐๐จ๐ซ ๐๐จ๐ง๐ฌ๐ฎ๐ฅ๐ญ๐๐ญ๐ข๐จ๐ง
The draft guidelines cover the constituent elements for exclusionary abuse of dominance and discuss specific exclusionary practices, such as predatory pricing, tying, and refusal to supply. They do not cover exploitative practices, such as excessive prices or restrictions of parallel trade, despite increased enforcement action in this field (think Apple and Mondelez).
Besides the criteria for assessing single and collective dominance, the condition of exclusionary effects will likely attract the most attention.
In the draft guidelines, the Commission distinguishes between:
ยป conduct for which actual or potential exclusionary effects must be shown;
ยป conduct that is presumed to have actual or potential exclusionary effects; and
ยป so-called naked restrictions for which the presumed actual or potential exclusionary effects can be rebutted only in very exceptional circumstances.
Regarding the latter naked restrictions, the draft guidelines mention practices such as payments made by a dominant undertaking to customers on condition that they postpone or cancel the launch of products based on competitor products and agreeing with distributors to swap competing products with those of the dominant undertaking under the threat of withdrawing the distributorsโ discounts.
A careful review will reveal if the draft guidelines indeed reflect the case-law, in particular where they shift the burden of proof to companies.
๐ Read the draft guidelines here.
Questions? โ๏ธ Feel free to contact your usual contact person at contrast.
#EuropeanCommission #CompetitionLaw #antitrust #ContrastUpdate
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