Penalty Clauses in Exclusive Contracts and Abuse of Dominant Position

Posted by D. Daniel Sokol

Ignacio Marin Garcia, Universitat Pompeu Fabra and Carlos Alberto Ruiz García, Universitat Pompeu Fabra - Department of Law describe Penalty Clauses in Exclusive Contracts and Abuse of Dominant Position.

ABSTRACT: This paper analyzes the Spanish National Competition Commission Decision of May 19, 2009, which fines 'Abertis' for abuse of dominant position. The abusive practice consisted in imposing excessive penalty clauses in contracts with national television channels. Penalty clauses in exclusive contracts may have effects on competition, either positive or negative. However, the National Competition Commission forgets the formers and therefore concludes that those clauses are anticompetitive.