Incremental costs: Drawbacks and advantages of the incremental costs test
The incremental costs test is now currently used by the competition authorities. However, the various criteria of this test are subject of intense debates among scholars and practionners. This article gathers four different points of view on this issue, among which an economist, a lawyer, a former representative of EDF and a representative of a national competition authority.
*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Elements for defining incremental costs in the context of a predation strategy : An Economist's Perspective
Vincent THOUVENIN Chief Mining Engineer*
The European Commission used incremental costs in 2001 to sanction a practice of the German Post Office in the market for mail-order parcel services open to competition (EC Commission, 20 March 2001, Deutsche Post AG, Case COMP/35.141, OJEC No L. 125, 5 May 2001, p. 27). More recently, the Competition Council has used the same tool to refute the existence of predatory pricing on passenger ferry services between the mainland and Ile d'Yeu (Cons. conc., Dec. No 04-D-79 of 23 December 2004, BOCCRF No 3 of 31 March
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