ON THE RELEVANT COST STANDARD FOR PRICE–COST TEST IN ABUSES OF DOMINANCE

Pietro Crocioni

Journal of Competition Law and Economics, 2018, vol. 14, issue 2, 262-291

Abstract: In price-based (exclusionary) abuse of dominance cases, price–cost tests often tend to be the main, if not only, a piece of evidence relied upon to conclude whether or not an infringement has taken place. Although we consider that this assigns too much weight and relevance to this element of the analysis, this article focuses on a few open questions on the relevant cost standard for price-based abuses of dominance. It puts forward six main practical suggestions starting from the observation that the key question a price–cost test seeks to answer is whether a dominant firm by expanding its output incurs losses.

Date: 2018
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