The article first traces the origins of the principle found in EU competition law that margin squeeze is a stand-alone type of abuse. This principle means that when determining whether an abusive margin squeeze occurred, there is no need to consider whether the retail price charged by the dominant undertaking is predatory, or whether the wholesale price is excessive, or even whether the dominant undertaking has a duty to deal. The article then considers whether the margin squeeze test adopted in EU competition law is sufficient or whether reference to the tests used for predatory pricing, exploitative pricing and/or refusal to supply should be made. It is concluded that reference to the tests used for these related types of abuses would be beneficial.
The article can be accessed online here.
Disclaimer
This document does not purport to give legal, financial or tax advice. Should you require further information or legal assistance, please do not hesitate to contact Dr. Annalies Muscat.