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The Italian Competition Authority condemns a ferry operator for predatory pricing on the basis of an incremental cost standard (Tourist-Caronte group)

The Italian Competition Authority (ICA) penalized a ferry operator, the Tourist-Caronte group (T-C) active across the Strait of Messina, for predatory pricing. Interestingly, in this case the ICA did not apply the EU predatory test as set out in the AKZO case [1] which incorporated the standards of average variable costs and average total costs. Instead, the ICA established predation on the basis of incremental costs. The facts of the case In August 1998 Diano started operating the Messina-Reggio Calabria maritime link. Soon afterwards also T-C, which already operated the Messina-Villa San Giovanni route, entered the Messina-Reggio Calabria route with

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Michele Giannino, The Italian Competition Authority condemns a ferry operator for predatory pricing on the basis of an incremental cost standard (Tourist-Caronte group), 17 April 2002, e-Competitions Bulletin April 2002, Art. N° 33281

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