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EC Publishes Discussion Paper On Abuse Of Dominant Market Positions
by Ulrika Lomas, for LawAndTax-News.com, Brussels

21 December 2005

The European Commission on Monday published a staff discussion paper on the application of EC Treaty competition rules on the abuse of a dominant market position.

The discussion paper is designed to promote a debate as to how EU markets are best protected from dominant companies’ exclusionary conduct, that is, conduct which risks weakening competition in a market.

The paper suggests a framework for the continued rigorous enforcement of Article 82, building on the economic analysis carried out in recent cases, and setting out one possible methodology for the assessment of some of the most common abusive practices, such as tying, and rebates and discounts.

Other forms of abuse, such as discriminatory and exploitative conduct, will be the subject of further work by the Commission in 2006.

Competition Commissioner Neelie Kroes announced that:

“I will rigorously enforce the Treaty’s prohibition on abusive conduct. Dominant companies should be allowed to compete effectively. Putting this policy objective into a consistent legal and economic framework is an ambitious project, but it is worthwhile for the clarity it will give to companies and their advisers."

"Our fundamental aim is to ensure that the EU’s powers to intervene against monopoly abuses are applied consistently and effectively, not only by the Commission but also by national competition agencies and courts throughout the EU which also now apply EU competition law."

"This discussion paper is the first step, and I want a wide discussion before taking a firm view on the proposals in the paper and before deciding how best to apply the results of these discussions.”

The Commission is inviting comments on the present discussion paper by 31 March 2006.

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