Abuse of Collective Dominance: The Need for a New Approach

Abstract

The purpose of this article is to discuss the application of Treaty on the Functioning of the European Union (TFEU) Article 102 to abuse of collective dominance. We demonstrate that while the concept of collective dominance has developed in line with a sound economic approach focusing on coordinated effects, no genuine concept of abuse in such situations has been established. Instead, the concept of abuse has been closely linked to the abuse concept in single dominance cases. We argue that there is a need to adapt the concept of abuse to the particular challenges posed by collective dominance and that Article 102 TFEU should primarily focus on conduct having as its object or effect the strengthening of the collective dominant position by reinforcing the oligopolistic interdependence and the tightening of the oligopoly. In this respect, Article 102 represents an as yet underdeveloped tool.