The Price Squeeze Test as a ‘Wildcard’ at the Hands of Competition Authorities: The Example of the Greek Broadband Internet Services Market

V. Brisimi and D. Yannelis

Competition and Regulation in Network Industries, 2012, vol. 13, issue 1, 2-19

Abstract: The article examines a decision adopted by the Hellenic Telecommunications and Post Commission (EETT) under its competition law competence on a margin squeeze allegedly applied by the Greek incumbent in the markets for broadband internet access and services. Three main criticisms are addressed to the decision regarding market definition, the imputation test used (and particularly the test for assessing profitability over time), and the proof of likely anti-competitive effects in the relevant market. In light of those criticisms, it is argued that the margin squeeze test for establishing an abuse of dominance is based upon a number of ad hoc assumptions, which might turn it into a discretionary, outcome-oriented device at the hands of the Competition Authorities.

Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:sen:journl:v:13:i:1:y:2012:p:2-19

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