Anticompetitive business practices in which a dominant firm may engage in order to maintain or increase its position in the market. These business practices by the firm, not without controversy, may be considered as “abusive or improper exploitation” of monopolistic control of a market aimed at restricting competition. The term abuse of dominant position has been explicitly incorporated in competition legislation of various countries such as Canada, the EU and Germany. In the United States, the counterpart provisions would be those dealing with monopoly and attempts to monopolize or monopolization of a market.
Source: OECD
On January 24, 2017, the European Commission announced that it had fined Qualcomm EUR 997,439,000. The Commission thinks that Qualcomm had abused its dominant position to become Apple’s sole supplier of long term evolution (“LTE“) baseband chipsets. The abuse was allegedly committed through exclusive deals, which lasted from 2011 to 2016. Baseband chipsets are key components in smartphones and tablets, which enable connection…
The Bulgarian Commission for Protection of Competition (“CPC”) has imposed fines on two out of the three integrated electricity companies in Bulgaria, part of the Austrian EVN group and the Czech CEZ group. The CPC initiated investigations against the three Bulgarian electricity distribution companies – CEZ, Energo-Pro and EVN and their affiliated end suppliers and…
On December 19, 2017, the Federal Cartel Office (“FCO”) published a press release on its preliminary assessment in the ongoing Facebook dominance probe, accompanied by a background paper (available in English here). The FCO considers that Facebook abuses its dominant position through imposing unfair general terms and conditions (“t&cs”). The published materials provide some interesting…
‘Product hopping’, or ‘evergreening’, are expressions used (by antitrust authorities and industry respectively) to describe strategies employed by pharmaceutical companies to protect sales of a successful drug on the verge of losing patent protection. For example, a pharmaceutical company might introduce a new formulation of the drug before it faces significant competition from a generic…
On the 14 September, the Court of Justice of the European Union provided detailed guidance on the concept of excessive pricing under Article 102 TFEU, in response to questions posed by the Latvian Supreme Court. In Case C-177/16, the Latvian Supreme Court referred a number of questions to the Court of Justice of the European…
The GC’s decision of 14 September 2017 relates to a complaint filed with the European Commission (‘EC’) by Contact Software, a German software supplier of Product Data Management (‘PDM’). Contact Software alleged an abuse of dominance by Dassault Systèmes (‘Dassault’) and Parametric Technology Corp (‘Parametric’), as they refused to provide Contact Software with interface information…
In short: The Background: In September 2017, the European Court of Justice (Case C-413/14 P) reversed the ruling of the General Court, which had upheld the European Commission’s €1.06 billion fine on Intel for abusing its dominant position on the market for x86 central processing units. The Main Issue: The Intel case prompted much debate…
On 6 September, the EU’s highest court, the Court of Justice (CJEU), released its long-awaited decision in the Intel case, in which the Commission imposed a fine of €1.06 billion – at the time, the largest fine ever imposed by a competition regulator on an individual company. This is a very important decision in light…
I thank my friend and senior, Sahithya Murali, for meaningful suggestions on a draft of this blog. I. Introduction The car spare-parts market in India is a closed one, because car manufacturers mandate that the authorized dealers source their spare parts only from the Original Equipment Manufacturers (OEMs) or the approved vendors, and the…
Let me get this straight from the beginning. I am not a big fan of the trend among the competition authorities to introduce whistleblowing programs. For me this seems to be rather a sign of weakness and not of strength. If other available tools (and especially the leniency program) worked well there would probably be…
