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Competition Policy in the EUFifty Years on from the Treaty of Rome$
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Xavier Vives

Print publication date: 2009

Print ISBN-13: 9780199566358

Published to Oxford Scholarship Online: September 2009

DOI: 10.1093/acprof:oso/9780199566358.001.0001

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Some Economics of Abuse of Dominance

Some Economics of Abuse of Dominance

Chapter:
(p.71) 4 Some Economics of Abuse of Dominance
Source:
Competition Policy in the EU
Author(s):

John Vickers

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199566358.003.0004

This chapter offers an economic appraisal of selected aspects of EC law and policy towards abuse of dominance (Article 82). After a brief discussion of thresholds for dominance, five theories of exclusionary harm to competition are outlined concerning: predatory pricing, partial exclusion to exploit rivals, divide-and-rule exclusion, leverage of market power, and maintenance of market power. Issues arising in three EC cases on which judgment was given in 2007 are then discussed in the light of these theories: Wanadoo (predatory pricing), British Airways (discounts and rebates), and Microsoft (refusal to supply, tying and bundling). Implications and prospects for the development of better economics-grounded EC law and policy towards abuse of dominance are discussed in conclusion.

Keywords:   monopolization, abuse of dominance, predatory pricing, tying, refusal to supply

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