The Italian Administrative Court of First Instance annuls a national telecommunications company’s margin squeeze fine due to the Competition Authority incorrectly applying the "as efficient competitor" test (Vodafone)

On 15 September 2021, the Italian administrative court of first instance ("TAR Lazio") upheld the appeal brought by Vodafone Italia S.p.A. ("Vodafone") against the decision of the Italian Competition Authority ("ICA") of 13 December 2017 in case A500(A). The TAR Lazio found that the ICA had incorrectly applied the "as efficient competitor test". As a result of that error, the ICA erroneously established the existence of a margin squeeze in the bulk SMS market. Therefore, the TAR Lazio annulled the ICA's €5.7m fine. Key takeawaysIn margin squeeze cases, the ICA is required to apply the "as-efficient competitor test".When applying the "as-efficient competitor"

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Denis Fosselard, Gabriele Accardo, Giulia Carnazza, The Italian Administrative Court of First Instance annuls a national telecommunications company’s margin squeeze fine due to the Competition Authority incorrectly applying the "as efficient competitor" test (Vodafone), 15 septembre 2021, e-Competitions November 2021 - II, Art. N° 103658

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