Part IV Analytic of the Concept of Dominance, 11 Collective Dominance

Subject(s):

Collective or joint dominance

This chapter addresses the concept of collective dominance. A closer analysis of the case law and its economic foundations shows that there are two distinct types of collective dominance that are governed by different legal tests. Non-oligopolistic collective dominance arises when structural or commercial links or direct or indirect contacts are sufficient for two or more undertakings to act on the market as a collective entity. Oligopolistic collective dominance arises when undertakings in a tight oligopoly have the ability and incentive to coordinate their behaviour by raising prices, restricting output, or reducing investment through repeated market interactions. Overall, the law on collective dominance is consistent with the objective of Article 102 and strikes the right balance between the risk of false convictions and over-deterrence and the need to ensure the effectiveness of Article 102 in addressing competitive harm caused by two or more undertakings which are jointly dominant.