Commission adopts EU Guidelines on exclusionary abuses of dominance

COMPETITION

On September 3, the European Commission adopted guidelines on abusive exclusionary practices by dominant firms.

Exclusionary abuses are practices which have the effect of excluding or preventing a competitor from entering or expanding in a market by means that are not based on competition on the merits (e.g. predatory pricing, exclusive agreements, tying).

By depriving competitors from a fair chance to enter the market, these practices weaken innovation and other market dynamics and reduce consumer choice.

Today's guidelines provide for a modern and economically sound framework, which is based on the case law of the EU Courts and seeks to tackle exclusionary abuses effectively.

They will:

  • Help companies assess whether they, alone or together with other companies, hold a dominant position in one or more markets, including where ecosystems and after-markets are concerned;
  • Give guidance on the criteria to take into account when establishing whether conduct departs from competition on the merits and leads to exclusionary effects;
  • Set out the framework for analysing specific types of conduct by dominant companies; and
  • Clarify how companies may justify their conduct by showing that it is objectively necessary or that it creates efficiencies which outweigh any negative effects and ultimately benefit consumers.

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