Margin Squeeze in the Electronic Communications Sector: Critical Analysis of the Decisional Practice and Case Law
Margin Squeeze in the Electronic Communications Sector provides an in-depth analysis of margin squeeze allegations in the electronic communications sector. Margin squeeze is a form of abuse of a dominant position in which a vertically integrated company reduces the margin between the price charged to competitors and the price charged to consumers, which can have the effect of excluding a competitor from the market. In the decade or so since the liberalisation of network industries, margin squeeze has become a major source of concern among competition authorities and courts, particularly pronounced in the electronic communications sector. Because some of the adopted decisions show significant inconsistencies in approach, and legal certainty remains elusive in this area, this book which provides an advanced and comprehensive analysis of principles guides the ex post assessment of margin squeeze.
What’s in this book:
Issues and topics covered include:
- scope of intervention in margin squeeze cases both for national regulatory and national competition authorities;
- conditions for sanctioning margin squeeze under Article 102;
- practical difficulties in identifying a margin squeeze;
- methodology employed in margin squeeze cases and its regulatory aspects;
- assessment of the ability and incentives of regulated firms to engage in a margin squeeze; and
- situations when competition law is used to address the deficits of regulation and regulatory failures.
This book also includes a critical comparison of the vertical foreclosure analysis undertaken in margin squeeze cases with the approach adopted in the EU Non-Horizontal Merger Guidelines. Throughout the analysis, margin squeeze treatment in the European Union and its Member States is examined in light of the diverging approach adopted by the US Supreme Court.
How this will help you:
The increasing complexity of the electronic communications market can only further confound an already complex assessment of price squeezes, and one can expect that claims of anticompetitive margin squeeze in liberalised network industries will continue to be high on the enforcement agenda of competition authorities for years to come. In light of the need for a coherent, or at least predictable, sentencing policy to provide relative legal certainty, the research in this book proves invaluable. The analysis and conclusions discussed in this book will be welcomed by policymakers, regulators, and lawyers working in the areas of competition law and electronic communications law.
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List of Abbreviations
List of Figures
List of Tables
An Overview of the EU and US Decisional Practice in the Field of Margin Squeeze
Taxonomy of a Margin Squeeze and Its Enforcement Models
The Scope of Intervention in Margin Squeeze Cases: Substantive and Institutional Considerations
Theory of Competition Law as a Tool of Regulation in Network Industries: Conceptual Issues
Margin Squeeze as a Constructive Refusal to Deal: A Deviation from the Essential Facilities Doctrine or Just Another Form of Vertical Foreclosure?
Margin Squeeze and Predatory Pricing
Conclusions: Re-evalution of the Added Value of Margin Squeeze as an Independent Theory of Abuse
List of Selected Margin Squeeze Cases
Table of Cases
Table of EU Legislation, Regulations, Soft Law Instruments