Thursday, March 29, 2012
The ‘Feedback Effect’ of Applying EU Competition Law to Regulated Industries: Doctrinal Contamination in the Case of Margin Squeeze
Posted by D. Daniel Sokol
Hendrik Auf'mkolk (University of Munster) describes The ‘Feedback Effect’ of Applying EU Competition Law to Regulated Industries: Doctrinal Contamination in the Case of Margin Squeeze.
ABSTRACT: Applying EU competition law to industries under sector-specific regulation can have ‘feedback effects’ on its substantive principles if the two regimes and their respective goals and standards of intervention are not clearly distinguished. The emergence of a standalone rule against margin squeeze under EU competition law based on regulatory models of access pricing is a case in point. An overly broad competition law rule may chill legitimate price competition and discriminate against vertically integrated firms, particularly in markets that lack the economic characteristics of regulated network industries.