Part IV Analytic of the Concept of Dominance, 10 Single Dominance
From: The Foundations of European Union Competition Law: The Objective and Principles of Article 102
- Buyer power — Barriers to entry — Defining abuse of dominant position — Market power
This chapter discusses the concept of dominance. There are two models of dominance: a structuralist model that regards dominance as coextensive with substantial and durable market power, and a behavioural or dynamic model that regards dominance as the ability to harm competition. Under Article 102, dominance is the ability to harm competition to the detriment of long-term social welfare. It is, therefore, a quintessentially behavioural concept. This dynamic concept of dominance is consistent with the objective of Article 102, which is not to address market failures resulting from market power but to prohibit certain unilateral conduct that harms long-term social welfare. Having defined dominance, the chapter goes on to examine the three necessary elements of the dominance test: substantial and durable market power, the presence of dynamic barriers to entry, and the absence of countervailing buyer power.