STEP 4: An abuse of a dominant position is necessary

9 important questions on STEP 4: An abuse of a dominant position is necessary

Is it fair for the undertakings to charge excessively high prices to different customers for the same product without objective justifications on grounds of the quality, quantity and other characteristics of the product (United Brands)?

It is unjust for a company to charge different prices to different customers for the same product without objective justification based on the product. In United Brands, German customers were charged higher prices to cover transportation costs than Irish customers, despite the fact that the product had the same price, which meant that UB was reaping excessive profits.

Is it fair for the undertakings to charge excessively high prices to different customers for the same product without objective justifications on grounds of the quality, quantity and other characteristics of the product (United Brands)?

It is unjust for a company to charge different prices to different customers for the same product without objective justification based on the product. In United Brands, German customers were charged higher prices to cover transportation costs than Irish customers, despite the fact that the product had the same price, which meant that UB was reaping excessive profits.

Firstly, explain what predatory pricing is and why the excessively low pricing in AZKO Chemie v Commission was an abuse?


This practice involves artifically cutting prices with the aim of harming compeitiors.


In AZKO, AZKO cuts its flour prices below the cost of production with the 'intention' of eliminating its compeittors, so its conduct was an abuse.
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Can a dominant undertaking (business) refuse to supply products to an existing customer because they have been involved with other competitors (United Brands)?

A refusal to supply an existing customer because it had dealt with other competitors is an abuse, unless there is an objective economic reason.

Does bundling two distinct products amount to an abuse?

Bundling two distinct products may amount to an abuse

Why was the 'bundling' in Hilti AG v Commission considered an abuse?

Hilti forced buyers of its nail catridges to purchase its own nails even though the competitors nails were compatible.

Explain what types of discounts are permitted and whether it can relate to anything other than volume under Post Danmark II

The discounts should be linked purely to volume and must not act as a detriment to other suppliers.

Explain why linking discounts to the proportion of a buyer's needs for a partiuclar product is abusive (Hoffman-La Roche)?

In this case, the vitamins manufacturer abused its dominant position by providing substantial discounts to customers who purchased all of their products from them, preventing the buyer from dealing with other competitors.

Are disocunts for prompt payment a form of abuse or is it considered normal practice?

Discounts for prompt payment are a normal commercial practice, so there are no grounds for arguing that it is abusive.

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