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Papers > Business > Abuse of dominant position
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Abuse of dominant position |
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Define and describe different types of abuse of dominant position When analyzing if an undertaking is conducting abuse of its dominant position according to Article 82 (ex 86), it is the effect of the practice that is in focus. ... Unfairly High Pricing One of the most evident things that come to mind when we consider a company abusing a dominant position is different ways to use price regulations to gain market share. ... This is a way to violate the dominant position because it is only major companies that have the possibility to financially afford this strategy. ... Ties and discounts Ties means that a dominant firm add some supplementary or unconnected obligations to costumer and supplier. But more subtle ties may be secured through loyalty rebates, which grant the supplier or costumer discounts provided it commits itself to dealing with the dominant firm over a long period. The standard to judge to abuse or not is if the ties are severely determinant to the competitive structure of the common market. ... The Court have suggested that a quantity discount based on volume purchased may be justified, while discounts according to the percentage of the buyer’s total requirement bought from the dominant firm is not. |
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Title: Abuse of dominant position
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