RBB economists have advised on many cases involving allegations of abuse of dominance. These have included Article 82 investigations by the European Commission and equivalent inquiries by domestic European competition authorities. For example, RBB has recently worked with firms that have been investigated by the UK Office of Fair Trading under the Chapter II (abuse of dominance) provisions of the Competition Act 1998.

Our economists' experience in this area covers many sectors including airlines, packaging, branded consumer goods, software, pharmaceuticals and newspapers. The issues we have analysed have included:

Access to essential facilities
  For an “essential facilities” abuse to arise, it is necessary that the facility in question is truly indispensable in supplying a related market. Market definition in both markets is therefore often decisive in such cases. Our extensive experience of these issues allows us to assist clients in preparing and presenting robust and relevant market analyses.
   
Exclusionary discounting
  An appraisal of the precise circumstances of an individual case is critical to the interpretation of specific volume discount structures and their likely competitive impact. Our ability to combine sound economic analysis with a practical understanding of how businesses actually work, and the underlying motivation for such schemes, enables us to appraise the effects of particular discount structures, such as specific volume rebate schemes.
   
Tying and bundling
  Our ability to test theoretical predictions against specific empirical realities enables reliable conclusions to be drawn where, as with tying and bundling, economic theory alone provides both pro-competitive and anti-competitive rationales for the observed behaviour.
   
Predation
  Our economic knowledge allows us to undertake the careful analysis of costs, together with assessment of any legitimate motives for loss leading, and of the stability of current industry structures necessary to distinguish competitive from exclusionary pricing.
   
Price discrimination
  We have advised extensively on the economic theory of price discrimination, and have considerable working knowledge of the commercial factors that make variable price-cost margins a standard feature of the competitive market environment in most sectors. Our work has frequently analysed the relationship between these commercial realities and public policy objectives aimed at the potentially harmful effects of price discrimination.
   
Excess pricing
  Excessive pricing would normally be expected to induce a correcting competitive response. Our ability to identify any constraints on such reactions, as well as to ensure profitability measures incorporate appropriate allowance for risk and other relevant economic factors, allows us to robustly evaluate allegations of exploitative pricing.

RBB economists have also advised on numerous monopoly cases investigated by the Competition Commission (formerly Monopolies and Mergers Commission) in the UK, most recently during the investigation of extended warranties for domestic electrical goods.

 

 
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