27 July 2003

The Genzyme Case and the OFT’s Margin Squeeze Muddle

In March 2003 the OFT decided that Genzyme had infringed the UK Competition Act’s Chapter II prohibition (the UK analogue of EC Article 82) by bundling its product with associated home care services, and by imposing a margin squeeze on competing firms. Based on the case law and the OFT’s published guidelines, this decision might appear at first glance to be a straightforward case of dominant firm abuse. But a closer analysis of the economic issues raises some interesting and as yet unanswered questions about the nature of dominant firms’ obligations under competition law.

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