Wednesday, June 4, 2008
Posted by D. Daniel Sokol
Bernard Amory & Alexandre Verheyden (Jones Day) provide some Comments on the CFI's Recent Ruling in Deutsche Telekom v. European Commission.
ABSTRACT: This brief paper discusses the implications on the test for price squeeze arising from the Deutsche Telekom ruling of the European Court of First Instance (CFI) of April 10, 2008. Price squeeze is a relatively novel form of abuse. In many respects, it is a concept that is still evolving, and various issues remain open, such as the need for a finding of dual dominance both at the retail and wholesale level, and the scope of the service or the size of the market affected.
The CFI ruling provides some clarity on the issues of (i) price squeeze as a stand-alone ground for abuse and (ii) the relevance of the two tests (hypothetical competitor and reasonably efficient competitor) proposed by the Commission in support of a price squeeze allegation. Our comments will focus on these two points. However, we submit that this judgment raises a number of new questions.