A situation in a market in which firms or sellers independently strive for the patronage of buyers in order to achieve a particular business objective, e.g., profits, sales and/or market share. Competition in this context is often equated with rivalry. Competitive rivalry between firms can occur when there are two firms or many firms. This rivalry may take place in terms of price, quality, service or combinations of these and other factors which customers may value.
Source: OECD
The Disputes Microsoft is sued for alleged excessive pricing in China by Guangzhou Kam Hing Textile Dyeing Co., Ltd. (Guangzhou Kam Hing). In March 2012, Microsoft sued Guangzhou Kam Hing in the Nansha District People’s Court (Nansha Court) for using pirated Microsoft software. According to the news report, the Hong Kong parent company of Guangzhou…
Australia has a statute-based access regime – Part IIIA of the Australian Competition and Consumer Act 2010 (Cth) (CCA). The Commonwealth has recently announced a comprehensive review (Inquiry) of Part IIIA by the Productivity Commission (Commission). The Inquiry’s terms of reference were released on the 25 October 2012 and provide a very broad scope for…
In contrast to e.g. the UK Office of Fair Trading, the European Commission so far has not applied UPP-type approaches in phase I merger enquiries. However, a Commission submission to the OECD earlier this year indicates that it is keeping its options open. This post discusses frequently asked questions regarding the concept of UPP and…
The Commission published the text of its most recent prohibition decision in Deutsche Boerse / NYSE Euronext. The Decision is lengthy and the Commission appears to have formulated a response to most arguments proffered by the parties. However, a review of the Decision brings to the fore a number of ways in which the Commission…
The EU’s General Court issued on 14 November two important judgments regarding the extent of the European Commission’s powers to dawn raid companies for suspected competition law infringements (Case T-135/09 Nexans v Commission and Case T-140/09 Prysmian v Commission). The Court held that the European Commission must precisely delimit the products concerned by a dawn…
In the context of antitrust and cartel investigations, electronic data or computer-generated information often has the highest evidential value and potentially the highest impact on the outcome of the investigation. For this reason, when conducting surprise inspections at the premises of a suspected undertaking, electronic data is often the first target of the Commission. Companies…
According to standard economic theory, unfettered free markets lead to an efficient allocation of resources. Importantly, this result is generally taken to hold only insofar as market failures are absent. One of these failures, market power, is defined as the ability to elevate prices above competitive levels for a significant period of time. Generally speaking,…
Sometimes it’s hard for regulators to see the world beyond the protective bubble in which they spend so much of their working lives. Professional preoccupations can easily blind them to the real concerns – or lack of them – of people living outside the bubble. Often this visual disability is accompanied by a strange failure…
On 16 July 2012, a U.S. appeals court issued a decision holding that pharmaceutical patent settlements that restrict generic entry and contain a payment to the generic company are presumptively unlawful under the U.S. antitrust laws. The decision is a major victory for the U.S. Federal Trade Commission’s view of pharmaceutical patent settlements with so-called…
Shortly after revealing proposed amendments to the Competition and Consumer Protection Act (for details, please see my post from May 22), the Polish Competition Authority (the President of the Office for Protection of Competition and Consumers) published draft guidelines on commitment decisions (“Guidelines”). Since PCA nowadays uses commitment decisions increasingly often (125 such decisions were…
