
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:
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Access to essential facilities |
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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. |
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Exclusionary discounting |
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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. |
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Tying and bundling |
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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. |
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Predation |
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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. |
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Price discrimination |
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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. |
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Excess pricing |
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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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