This volume examines the controversy surrounding the use of competition law to combat excessive pricing. While high or monopolistic pricing is not regarded as an antitrust violation in the US, employing abuse of dominance provisions in competition laws to fight excessive pricing has gained popularity in some BRICS jurisdictions and a number of EU-member states in recent years. The book begins by discussing the economic arguments for and against the prohibition of excessive or unfair prices by firms with market power. It then presents various country studies, focusing on developed countries (such as the UK and Israel) and on the BRICS countries, to highlight various practical challenges involved in recognizing excessive prices as abusive conduct on the part of dominant firms, including how to define, measure and identify excessive prices. The contributors also discuss other policy options that can be used to fight excessive prices in order to protect consumer welfare.

This volume examines the controversy surrounding the use of competition law to combat excessive pricing. While high or monopolistic pricing is not regarded as an antitrust violation in the US, employing abuse of dominance provisions in competition laws to fight excessive pricing has gained popularity in some BRICS jurisdictions and a number of EU-member states in recent years. The book begins by discussing the economic arguments for and against the prohibition of excessive or unfair prices by firms with market power. It then presents various country studies, focusing on developed countries (such as the UK and Israel) and on the BRICS countries, to highlight various practical challenges involved in recognizing excessive prices as abusive conduct on the part of dominant firms, including how to define, measure and identify excessive prices. The contributors also discuss other policy options that can be used to fight excessive prices in order to protect consumer welfare.

One of the most controversial theories of harm in competition law in general, and within the category of exploitative abuses in particular, is that of excessive prices. The Competition Authority, while analyzing any conduct in this category must very carefully and cautiously first assess the structures of the market, which inter alia includes, High and non-transitory entry barriers, the dominance and its origin and other ancillary aspects. Once, such determination is made the Competition Authority while analyzing the abuse under the microscope of excessive or fair, should not only focus on the profitability or price cost comparisons in determining as to whether the prices are excessive or not should also determine as to whether the prices so charged are “unfair” or “fair”. While analyzing this, principle of dual entitlement can facilitate the Competition Authority in reaching a just and appropriate conclusion. It is deliberated that in general this principle is in line with the goals of an effective prohibition of excessive pricing and develop a procedure that defines a price as 'unfair' in terms of this principle. Moreover, it has also been argued that while it may sometimes be appropriate to intervene against instances of excessive pricing, the authorities should, as far as possible, endeavor to address the causes of the abuse - that is, market conditions and circumstances that allow the excessive pricing to occur - rather than using price regulation to merely address the symptoms of abuse. Such interventions will, arguably, have more in common with consumer protection policy than with traditional competition policy, however the objective remains the same: to improve the functioning of competition for the benefit of consumers. Accordingly, a test for future consideration is suggested to deal with the excessive pricing abuse.

The present work is born with the aim of providing guidance when dealing with a complex subject that is both recent and relevant for society in general. Excessive pricing has proved to be an issue of increasing relevance and con-cern, as demonstrated by the number of recent cases across the world, espe-cially in the pharmaceutical sector. The matter is still highly debated both in the literature and in courts. Besides, competition authorities have encountered considerable difficulties in enfor-cing the provision against excessive pricing.The main issues revolving around excessive pricing and, specifically, excessive pricing in the pharmaceutical sector, can be synthesized as follows: How to define excessive pricing; What are the possible models for a provision against excessive pricing; How to assess price levels; Whether to enforce the provision against excessive pricing; When to do so; How the various jurisdictions have approached excessive pricing in practice; How this framework applies to the pharmaceutical sector, considering its peculiarities, also in the light of recent decisions; Which remedies are available to address excessive pricing.

The most important book on antitrust ever written. It shows how antitrust suits adversely affect the consumer by encouraging a costly form of protection for inefficient and uncompetitive small businesses.

The aim of this paper is to provide a coherent approach to the prohibition of excessive pricing by dominant firms as an antitrust violation. It first highlights the rationale for the prohibition, and shows that the prohibition exists and is also enforced in many countries. It then shows why investment considerations should be assessed on a case by case basis, rather than as an overreaching reason for a lenient approach toward all cases. Next the paper provides a three step framework that should be used to assess an excessive pricing case: The first step is to establish a "more competitive price" to which the price charged should be compared (this involves economic analysis); The second step is to assess whether the challenged price is allegedly excessive compared to this more competitive price (this does not involve economic analysis but rather a legal policy decision); The third and final step is to assess the dominant firm's efficiency claims, according to which the allegedly excessive price was necessary in order to establish a pro-consumer benefit that outweighs the harm to consumers (this step involves economic analysis). The paper then makes three particular policy claims: First, liability for excessive pricing should not be limited to cases that mix exploitative and exclusionary behavior; second, antitrust liability should be for past behavior, regardless of the prospects of future competition. Finally, excessive prices are not self-correcting.

Granting rebates to a customer or refusing to supply a competitor are examples of ordinary commercial practices, which become ‘abusive’ under Article 102 of the Treaty on the Functioning of the EU (TFEU) when carried out by ‘dominant’ firms. This topical book provides an up-to-date account of the emerging trends in the enforcement and interpretation of this provision at both the EU and national level.