Cross subsidisation

 

Institution Definition

Cross subsidisation means that an undertaking bears or allocates all or part of the costs of its activity in one geographical or product market to its activity in another geographical or product market. Under certain circumstances, cross subsidisation in the postal sector, where nearly all operators provide reserved and non reserved services, can distort competition and lead to competitors being beaten by offers which are made possible not by efficiency (including economies of scope) and performance but by cross subsidies. (...) © European Commission

 
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