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Price squeezes, foreclosure and competition law

Author

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  • P. Crocioni
  • C. Veljanovski

Abstract

This article looks at the definition, conditions and evidence necessary to establish that a price squeeze is an exclusionary abuse, and thus an infringement of EC competition law. It shows that the necessary conditions are demanding, and that the empirical test for a price squeeze must be carried out carefully. It offers practical guidelines for determining whether an exclusionary price squeeze is present, and particularly on the appropriate calculation of downstream margins (the “imputation test†) that should be employed.

Suggested Citation

  • P. Crocioni & C. Veljanovski, 2003. "Price squeezes, foreclosure and competition law," Competition and Regulation in Network Industries, Intersentia, vol. 4(1), pages 28-61, September.
    • Handle: RePEc:sen:journl:v:4:i:1:y:2003:p:28-61
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    Cited by:

    1. Christoph Kleineberg & Thomas Wein, 2017. "Verdrängungspreise an Tankstellen?," Working Paper Series in Economics 375, University of Lüneburg, Institute of Economics.
    2. Justus Haucap & Torben Stühmeier, 2016. "Competition and antitrust in Internet markets," Chapters, in: Johannes M. Bauer & Michael Latzer (ed.), Handbook on the Economics of the Internet, chapter 9, pages 183-210, Edward Elgar Publishing.
    3. Martin Obradovits, 2013. "Excessive supplier pricing and high-quality foreclosure," Vienna Economics Papers vie1303, University of Vienna, Department of Economics.
    4. Martin Obradovits, 2013. "Excessive supplier pricing and high-quality foreclosure," Vienna Economics Papers 1303, University of Vienna, Department of Economics.
    5. Yannelis, Demetrius, 2010. "Price Squeeze in Practice: Is it a Profitable Strategy?," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 40, International Telecommunications Society (ITS).
    6. Henry ERGAS & Eric RALPH & Emma LANIGAN, 2010. "Price Squeezes and Imputation Tests on Next Generation Access Networks," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(78), pages 67-86, 2nd quart.

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