Monday, October 14, 2019
Pietro Crocioni, University of Warwick - Warwick Business School asks Why not Call a Margin Squeeze a Margin Squeeze?
ABSTRACT: At the end of October 2018, Ofcom issued its first abuse of dominance infringement decision and fine under the Competition Act 1998 against Royal Mail. Perhaps surprisingly, Ofcom did not examine the behaviour as either a margin squeeze or a refusal to supply, the types of cases one would expect in post (and communications) services. Instead, it looked at it under the old-fashioned banner of price discrimination. We consider that the way Ofcom approached the analysis is unlikely to provide helpful guidance to the industry and critically does not provide a useful basis for concluding whether Royal Mail’s behaviour has led to exclusion and consumer harm.