Thursday, December 23, 2010
Abuse of Dominance under the Egyptian Competition Law: Investigating Peculiarities That May Have Special Effects in the Economy
Posted by D. Daniel Sokol
ABSTRACT: This paper investigates peculiarities in the treatment of abuse of dominance under Egyptian Competition Law and evaluates their potential effects in the economy. Particularly, it recognizes the lack of excessive pricing prohibition and the deployment of effects-based approach to abuse of dominance at the present stage as likely peculiarities in Egyptian Competition Law that may harm the economy. It is specifically argued that the success of the practice of excessive pricing, at least in exceptional circumstances, may become more plausible at this stage in Egypt, as an emerging economy, since it lacks the necessary competition culture and, as such, its market is highly concentrated. The paper, furthermore, finds that employing an effects-based approach at this early stage of competition law enforcement may not be suitable due to the understandable lack of experience that may increase the likelihood of committing judicial errors. It is, however, perceived that investigating the practice of excessive pricing is quite complex and, as such prohibiting it may not be the best initiative at this stage. Moreover, it is suggested that employing an effects-based analysis, as opposed to per se approach, may help avoid type II errors (erroneously condemning pro-competitive practices). It is, hence, suggested to stick by this approach at the current stage; so long as caution is taken in relation to practices that generate questionable anti-competitive effects. Whether for introducing an excessive pricing prohibition in the future (should the practice continue to pose a threat) or employing effects-based approach, it is argued that increasing economic expertise in the field of competition law and cooperating with competition authorities of the developed world remains central.