Margin squeeze and competition law: An overview of EU and national case law

Definition 1. A margin or price squeeze occurs when the difference between the wholesale price of an input supplied by a dominant entity and the downstream price does not give an efficient downstream firm a reasonable profit margin. 2. This foreword reviews the law and economics of an anti-competitive margin squeeze by European and national competition authorities together with a critical assessment of the European Court of Justice (ECJ) Telia/Sonera [1] judgment in early 2012. Overview 3. Before examining the legal and economic nature of a margin squeeze, it is useful to review the extent of the abuse as reflected in EC and national cases. 4. According to the e-Competitions database there have been 41 cases - 38 national cases in 20 European countries, and three decisions by the

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Cento Veljanovski, Margin squeeze and competition law: An overview of EU and national case law, 5 June 2012, e-Competitions Margin squeeze, Art. N° 46442

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