Advanced

Margin Squeeze as a Theory of Abuse

Ehde, Viktor LU (2016) LAGM01 20152
Department of Law
Abstract (Swedish)
Competition Law has a long history, both in the U.S and Europe, although it began in the former. The goal of competition law is, among other things, to deter companies with a large market share, to abuse this position to the detriment of consumers or competition itself.

Margin Squeeze is a theory of abuse relating to abuse of a dominant position. A dominant company on the wholesale market, and also active on the downstream market, attempt to squeeze its rivals margin by applying a high wholesale price and a low retail price, in order to force competitors out of the market. The dominant company must offer a product on the wholesale market that is necessary to produce the product on the downstream market.
In this essay I will present... (More)
Competition Law has a long history, both in the U.S and Europe, although it began in the former. The goal of competition law is, among other things, to deter companies with a large market share, to abuse this position to the detriment of consumers or competition itself.

Margin Squeeze is a theory of abuse relating to abuse of a dominant position. A dominant company on the wholesale market, and also active on the downstream market, attempt to squeeze its rivals margin by applying a high wholesale price and a low retail price, in order to force competitors out of the market. The dominant company must offer a product on the wholesale market that is necessary to produce the product on the downstream market.
In this essay I will present how the courts in both the U.S and the EU have applied the margin squeeze, and what differs between them. The essay present relevant information about margin squeeze in competition law. Thereafter I will present three different court cases in each legal area. While European courts has stated that the margin squeeze is a standalone abuse, the American counterparts have not gone the same way.

The opinion of a few academics is presented and how they suggest that the margin squeeze theory should be applied, if at all. Opinions differ here as well.
To conclude the essay, I will summaries what I have found in the essay and make a comparison between the two legal systems. (Less)
Please use this url to cite or link to this publication:
author
Ehde, Viktor LU
supervisor
organization
course
LAGM01 20152
year
type
H3 - Professional qualifications (4 Years - )
subject
keywords
Margin Squeeze, Competition Law, civil and criminal procedure
language
English
id
8514029
date added to LUP
2016-01-27 14:27:10
date last changed
2016-01-27 14:27:10
@misc{8514029,
  abstract     = {Competition Law has a long history, both in the U.S and Europe, although it began in the former. The goal of competition law is, among other things, to deter companies with a large market share, to abuse this position to the detriment of consumers or competition itself.

Margin Squeeze is a theory of abuse relating to abuse of a dominant position. A dominant company on the wholesale market, and also active on the downstream market, attempt to squeeze its rivals margin by applying a high wholesale price and a low retail price, in order to force competitors out of the market. The dominant company must offer a product on the wholesale market that is necessary to produce the product on the downstream market. 
In this essay I will present how the courts in both the U.S and the EU have applied the margin squeeze, and what differs between them. The essay present relevant information about margin squeeze in competition law. Thereafter I will present three different court cases in each legal area. While European courts has stated that the margin squeeze is a standalone abuse, the American counterparts have not gone the same way. 

The opinion of a few academics is presented and how they suggest that the margin squeeze theory should be applied, if at all. Opinions differ here as well. 
To conclude the essay, I will summaries what I have found in the essay and make a comparison between the two legal systems.},
  author       = {Ehde, Viktor},
  keyword      = {Margin Squeeze,Competition Law,civil and criminal procedure},
  language     = {eng},
  note         = {Student Paper},
  title        = {Margin Squeeze as a Theory of Abuse},
  year         = {2016},
}