Economics 3366A/B Study Guide - Quiz Guide: Effective Competition, Profit Margin, Post Danmark
8 Oct 2020
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Post danmark: extends akzo - exclusion of equally effective competitor; which is the result of a more economic approach. Margin squeeze: price-based (where dominant company supplies rivals with certain goods and services at wholesale level and at the same time competes with them on a downstream market. Forecloses downstream competitor based (new comer has access, but charges high prices that cuts the profit margin for that newcomer) Facts: cjeu said that margin squeeze is a form of abuse in its own right. Rule: margin squeeze does not constitute as per se abuse and that it"s not necessary to demonstrate anti-competitive effects. Additionally, it is not easier to prove than non-price abuses, because price competition is considered beneficial to consumers and thus you would have to apply an extra standard (which is the standard of assessment) to prove it. Non-price exclusionary abuses: reduced consumer choice (a. k. a. reduced output in the market)
