THE CONCEPT OF ABUSE IN EU COMPETITION LAW.
- Sinopsis
- Índice
The objective(s) of Article 102 TFEU, what exactly makes a practice abusive and the standard of harm under Article 102 TFEU have not yet been settled. This lack of clarity creates uncertainty for businesses and, coupled with the current state of economics in this area, raises an important question of legitimacy. Using law and economic approaches, this book inquires into the possible objectives of Article 102 TFEU and proposes a modern approach to interpreting 'abuse'. In doing so, this book establishes an overarching concept of 'abuse' that conforms to the historical roots of the provision, to the text of the provision itself, and to modern economic thinking on unilateral conduct. This book therefore inquires into what Article 102 TFEU is about, what it can be about and what it should be about regarding both objectives and scope.
The book demonstrates that the separation of exploitative abuse from exclusionary abuse is artificial and unsound. It examines the roots of Article 102 TFEU and the historical context of the adoption of the Treaty, the case law, policy and literature on exploitative abuses and, where relevant, on exclusionary abuses. The book investigates potential objectives, such as fairness and welfare, as well as the potential conflict between such objectives. Finally, it critically assesses the European Commission's modernisation of Article 102 TFEU, before proposing a reformed approach to 'abuse' which is centred on three necessary and sufficient conditions: exploitation, exclusion and a lack of an increase in efficiency.
INTRODUCTION
I Purpose of the Book
II Scope and Outline
III Methodology
PART I
THEORETICAL AND HISTORICAL FOUNDATIONS
1 WELFARE AND OBJECTIVES OF COMPETITION LAW AND POLICY
I Introduction
II Welfare Economics, Different Understandings of Welfare and Efficiency
A In General
B Different Types of Efficiency and Efficiency Trade-Offs in
Competition Policy
i Different Types of Efficiency
ii Efficiency Trade-Offs in
Competition Policy
III Objectives of Competition Law and Policy
A In General
i The Harvard School
ii The Chicago School
iii The Post-Chicago School
B Consumer Welfare and Total Welfare as Standards for
Competition Law and
Policy
C Triangles, Rectangles and Trapezoids: Whose Interest
Matters More?
D Is Welfare All That Matters?
IV Conclusion
2 THE HISTORICAL ROOTS OF ARTICLE 102 TFEU
I Introduction
II Objectives of EU Competition Law and Policy
III Ordoliberalism and Ordoliberal Competition Policy
IV Insights from the Period leading to the
Treaties of Rome
A Germany
B Europe
V The Highlights of the History of the Competition
Rules in the Treaties of Rome
A Back to Basics: From Messina to the ‘Spaak Report’
B The ‘Spaak Report’
i An Overview
ii The Common Market and the Goal of
Efficiency
iii The Problem of Monopolies
iv ‘Fair’ Competition
C Drafting of the Competition Rules
D The First Signs of Struggle: Proposal for Regulation 17
E Early Commission Interpretation
F Early Understandings of Dominance and Abuse
VI Implications for Article 102
VII Conclusion
PART II
TWO POTENTIAL OBJECTIVES: ‘WELFARE’ AND ‘FAIRNESS’
3 WELFARE IN ARTICLE 102 TFEU
I Introduction
II Article 101(3), the Welfare Standard and the
Treatment of Efficiencies under Article 102
A Why is there not an Equivalent of Article 101(3) in Article
102?
B Is there a Pass-On Requirement for Efficiencies in Article
102?
C Does Article 101(3) Set a Standard of ‘Consumer Welfare’?
III The Standard of Harm and the ‘Consumer Welfare’
Standard: A Critical Look at the Application of Article 102 by the Commission
and the EU Courts
A Are Effects Necessary for a Finding of Abuse?
B On Whom or What should Harm (or Harmful Effects) be
Demonstrated?
IV Conclusion
4 ‘FAIRNESS’ IN ARTICLE 102 TFEU
I Introduction
II Fairness and Ordoliberalism
III EU Case Law
IV Notions of ‘Fairness’
A In General
B Contract Law
C The Similarity of Fairness Notions in Contract Law with
Article 102 and its Im-
plications
i Inequality of Bargaining Power
ii Duress, Economic Duress and Undue
Influence
a Duress and
Economic Duress
b Undue
Influence
D EU Consumer Law
i Unfair Contract Terms
ii Unfair Commercial Practices
V Conclusion
PART III
CONFLICTING OBJECTIVES IN PRACTICE: TWO CASE STUDIES.
5 A CASE STUDY ON ‘FAIRNESS’ VERSUS ‘WELFARE’: ‘UNFAIR PRICING’ AS AN ABUSE
I Introduction
II Scope of Inquiry
III EU Case Law on ‘Unfair Pricing’
IV Insights from Behavioural Economics on ‘(Un)Fair’ Prices
V Suggestions from the Literature on Operationalising the ‘Unfair Pricing’ Prohibition
VI Is the Prohibition of ‘Unfair Pricing’
Inherently Problematic?
A Problems with Consistency, Certainty and Welfare
B Inherent Irrationality?
VII A New Test
A Business-to-Consumer Transactions
B Business-to-Business Transactions
C The Operation of the New Test
VIII Conclusion
6 A CASE STUDY ON ‘FAIRNESS’ VERSUS ‘WELFARE’: ‘DISCRIMINATION’ AS AN ABUSE
I Introduction
II Definitional Issues and the Operation of the
Prohibition under Article 102 TFEU
A Definitional Issues
B The ‘Competitive Disadvantage’ Requirement and the
Operation of the
Prohibition in Practice
III Should Discrimination be an Abuse under
Article 102 TFEU?
A Welfare
B Fairness
C Fairness versus Welfare
IV Reconciliation
V Conclusion
PART IV
MODERNISING THE APPROACH TO ‘ABUSE’
7 THE ‘REFORMED’ APPROACH TO ‘ABUSE’
I Introduction
II The Commission’s ‘Reform’ of its Approach to
‘Abuse’
A In General
B The Standard for Price-Based Exclusionary Conduct: The ‘As
Efficient Com-
petitor’
Test
C ‘Objective Necessity’ and ‘Efficiencies’
III Is an Economic, Effects-Based Approach Inherently Problematic?
IV Choice: The Problem with the ‘Reformed’ Approach?
V Conclusion
8 A NEW APPROACH TO ‘ABUSE’
I Introduction
II Exploitation as a Necessary Condition
III Exclusion as a Necessary Condition
IV A Lack of an Increase in Efficiency as a Necessary Condition
V Evaluation of the New Approach
VI Conclusion
CONCLUSION
Bibliography
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