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Excessive Prices within EU Competition Law

European Competition Journal, Vol. 7, No. 1, pp. 47-70, 2011

36 Pages Posted: 24 May 2011  

Liyang Hou

Shanghai Jiao Tong University (SJTU) - KoGuan Law School

Date Written: May 23, 2011

Abstract

Due to the different views in economics the prohibition of excessive prices is among the most controversial subjects within EU competition law. This article aims to shed some light on this concept. In the following, it first identifies the exceptional circumstances that may justify antitrust actions against excessive pricing. Subsequently, an empirical research is undertaken on the two-step analytical framework established by United Brands: first, analysing whether the profit margin is excessive; if affirmative, then assessing whether the price is unfair in itself or compared with others. In particular, it focuses on the three uncertainties within that framework: (i) determining an excessive profit margin, (ii) examining whether a price is abusive in itself, and (iii) demonstrating an abusive price based on benchmarks.

Keywords: Excessive price, Article 102, Competition Law, European Union

Suggested Citation

Hou, Liyang, Excessive Prices within EU Competition Law (May 23, 2011). European Competition Journal, Vol. 7, No. 1, pp. 47-70, 2011. Available at SSRN: https://ssrn.com/abstract=1850569

Liyang Hou (Contact Author)

Shanghai Jiao Tong University (SJTU) - KoGuan Law School ( email )

Huashan Road 1954
Xuhui District
Shanghai, Shanghai 200030
China
+86-21-6293-4632 (Phone)

HOME PAGE: http://law.sjtu.edu.cn/TeacherDetail123.aspx

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