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EUROPEAN COMMISSION DG Competition

Brussels, December 2005

DG Competition discussion paper on the application of Article 82 of the Treaty to exclusionary abuses

Public consultation

DG Competition invites all interested …

This document is a DG Competition discussion paper and has no enforcement status.

[NB: This document has been annotated by Val Korah, with additional headings centered and in italics. Some phrases within a paragraph are in italics to help readers find what they are seeking. I am indebted to my friend, David Michnal, for skilled help in preparing the annotations. He is not responsible for remaining errors.]

TABLE OF CONTENTS

  • 1.

    Introduction ...............................................................................................................................4

  • 2.

    Relationship of Article 82 with other provisions ......................................................................5

  • 3.

    Market definition in Article 82 cases........................................................................…………6

  • 4.

    Dominance.................................................................................................................................9

    • 4.1

      Introduction .............................................................................................................................9

    • 4.2

      Single dominance ..................................................................................................................10

      • 4.2.1

        Market position of allegedly dominant undertaking and its rivals......................................11

      • 4.2.2

        Barriers to expansion and entry...........................................................................................12

      • 4.2.3

        Market position of buyers....................................................................................................15

    • 4.3

      Collective dominance ............................................................................................................15

  • 5.

    Framework for analysis of exclusionary abuses......................................................................17

    • 5.1

      The central concern and proof of foreclosure .......................................................................17

    • 5.2

      Price versus non-price based exclusionary conduct...............................................................19

    • 5.3

      Horizontal versus vertical foreclosure....................................................................................21

    • 5.4

      Abuse of collective dominance .............................................................................................23

    • 5.5

      Possible defences: objective justifications and efficiencies...................................................24

      • 5.5.1

        Objective necessity defence ...............................................................................................25

      • 5.5.2

        Meeting competition defence .............................................................................................25

      • 5.5.3

        Efficiency defence...............................................................................................................26

  • 6.

    Predatory pricing .....................................................................................................................28

    • 6.1

      Introduction ...........................................................................................................................28

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