CASE COMMENT: UNILATERAL PRACTICES - MARGIN SQUEEZE - INDISPENSABILITY OF GOOD OR SERVICE - AS EFFICIENT COMPETITOR

Abusive margin squeeze: The Court of Cassation rules that the test for abusive margin squeeze is whether pricing by dominant firm inflicts losses to as efficient entrants; such losses cannot occur unless the good or service at hand is indispensable for a new entrant in order to penetrate the market (SFR - France Télécom)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The case that gave rise to the SFR and France Telecom ruling of March 3 is well known to observers of the telecom sector as well as readers of this column. Indeed, this is the second judgment of the French Supreme Court. I. A look back at the saga: Tariff scissors, rerouting, sibylline cassation and disordered effects analysis The practices initially condemned by the Competition Council were pricing practices, known as margin squeeze. These practices are specific to vertically integrated companies, which are able to adopt a combination of prices for their products or services located respectively on an upstream and a downstream market leaving

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  • Catholic University of Louvain

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Anne-Lise Sibony, Abusive margin squeeze: The Court of Cassation rules that the test for abusive margin squeeze is whether pricing by dominant firm inflicts losses to as efficient entrants; such losses cannot occur unless the good or service at hand is indispensable for a new entrant in order to penetrate the market (SFR - France Télécom), 3 March 2009, Concurrences N° 2-2009, Art. N° 26030, pp. 118-120

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