Price Squeezes, Foreclosure, and Competition Law: Principles and Guidelines

33 Pages Posted: 23 Nov 2011

See all articles by Cento Veljanovski

Cento Veljanovski

Case Associates; Institute of Economic Affairs

Pietro Crocioni

University of Warwick - Warwick Business School

Date Written: July 1, 2003

Abstract

This article looks at the definition, conditions and evidence necessary to establish that a price squeeze is an exclusionary abuse, and thus an infringement of EC competition law. It shows that the necessary conditions are demanding, and that the empirical test for a price squeeze must be carried out carefully. It offers practical guidelines for determining whether an exclusionary price squeeze is present, and particularly on the appropriate calculation of downstream margins (the 'imputation test') that should be employed.

Keywords: margin squeeze, price squeeze, excessive price, imputation test, foreclosure, dominance, essential facility

JEL Classification: K21, K23, K42, L12, L41, L43

Suggested Citation

Veljanovski, Cento and Crocioni, Pietro, Price Squeezes, Foreclosure, and Competition Law: Principles and Guidelines (July 1, 2003). Journal of Network Industries, Vol. 4, 2003. Available at SSRN: https://ssrn.com/abstract=1963659

Cento Veljanovski (Contact Author)

Case Associates ( email )

Pavilion
96 Kensington High Street
London, W8 4SG
United Kingdom
+44 (0)20 73764418 (Phone)

HOME PAGE: http://www.casecon.com

Institute of Economic Affairs

2 Lord North Street, Westminster
London, SW1P 3LB
United Kingdom

Pietro Crocioni

University of Warwick - Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom

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