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Module 2:
Dominance and its Abuse (the economics of art. 102) (12 a.h.1)

Prof. Chiara FUMAGALLI

Outline of Course Contents       

A. Introduction: the article 102EC. The basic legal and economic concepts of dominance

B. Problems of Market Definition in Dominance Cases – the Cellophane Fallacy. Can the problems be overcome? How?

C. Single Firm Dominance: Assessment

     1.    The central role of market shares. 

     2.    Factors in evaluating the significance of a specific market share measurement

     3.    Barriers to entry and expansion

     4.    Buyers’ Power

D.  Collective Dominance

E. The Notion of Abusive Conduct and its Assessment

     1.    Defining unilateral exclusionary conduct: some problems

     2.    The choice of substantive and legal standards

     3.    Recent approaches in defining unilateral exclusionary conduct

     4.    Typology of Competitive Harm due to Foreclosure

     5.    Categories of abuse under art. 102 EC

             Exploitative abuses

             Exclusionary abuses

            Discriminatory abuses

F. Discussion of Abusive Discrimination and Excessive Prices

G. Economic Analysis of Exclusionary Practices

     1. Strategic Pricing


           Price Discrimination

           Margin Squeeze

           Conditional Rebates

    2. Non-Price Practices

          Refusal to Deal

          Tying and Bundling

          Exclusive Dealing

H. Detailed  case analysis will accompany the presentation of each topic

Main references
•  R O’Donoghue and AJ Padilla (2006) «The Law and Economics of Article 82EC», Hart Publishing Oxford
   and Portland.

•  Motta M. (2004) «Competition Policy: Theory and Practice», Cambridge University Press, Chapter 7.

•  M D Whinston (2006) «Lectures on Antitrust Economics», MIT Press, Chapter 4.

•  B J Rodger & A MacCulloch (2009) «Competition Law and Policy in the EC and UK», Routledge – Cavendish
   (4th Edition).

•  For a review of basic microeconomics (especially by non-economists): Kreps D. (2004) “Microeconomics for Managers”, W. W. Norton & Co.

Module 1 Module 2 Module 3  Module 4 Module 5 Module 6 Module 7 Module 8
1 a.h. = academic hour (50 minutes).

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