Abuse of Economic Dependence - The Centre for European Policy ...
Abuse of Economic Dependence - The Centre for European Policy ...
Abuse of Economic Dependence - The Centre for European Policy ...
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Objectives <strong>of</strong> Article 82 7<br />
economic freedom <strong>of</strong> the market players as well as on preventing firms from<br />
using their economic power to undermine competitive structures. 7<br />
In Continental Can, the Court ruled:<br />
‘… abuse may there<strong>for</strong>e occur if an undertaking in a dominant position<br />
strengthens such position in such a way that the degree <strong>of</strong> dominance<br />
reached substantially fetters competition, i.e. that only undertakings<br />
remain in the market whose behaviour depends on the dominant one …<br />
it can … be regarded as an abuse if an undertaking holds a position so<br />
dominant that the objectives <strong>of</strong> the Treaty are circumvented by an alteration<br />
to the supply structure which seriously endangers the consumer’s<br />
freedom <strong>of</strong> action in the market such a case necessarily exists if practically<br />
all competition is eliminated.’ 8<br />
<strong>The</strong> ECJ in that case concluded that Article 82 is aimed at practices which<br />
may cause damage to consumers directly, as well as at practices that are<br />
detrimental to consumers through their impact on an effective competitive<br />
structure. 9<br />
Advocate General Jacobs has stated that: 10<br />
‘[I]t is important not to lose sight <strong>of</strong> the fact that the primary purpose <strong>of</strong><br />
article 82 is to prevent distortion <strong>of</strong> competition—and in particular to<br />
safeguard the interest <strong>of</strong> consumers—rather than to protect the position<br />
<strong>of</strong> particular competitors.’<br />
<strong>The</strong> Court <strong>of</strong> First Instance (‘CFI’) in the British Airways case explained:<br />
‘Article 82 EC does not require it to be demonstrated that the conduct in<br />
question had any actual or direct effect on consumers. Competition law<br />
concentrates upon protecting the market structure from artificial distortions<br />
because by doing so the interests <strong>of</strong> the consumer in the medium to<br />
long term are best protected.’ 11<br />
7 L Gormsen, ‘Article 82 EC: Where are we coming from and where are we going to?’, <strong>The</strong><br />
Competition Law Review, vol 2, issue 2, March 2006, 19.<br />
8 Case 6/72 Europemballage Corp and Continental Can Co Inc v Commission<br />
(Continental Can) [1973] ECR I-215, § 26.<br />
9 See also the Opinion <strong>of</strong> AG Kokott in BA v Commission (British Airways Plc v<br />
Commission, C95/04 P) § 69, about the protective purpose <strong>of</strong> Article 82 being to protect the<br />
structure <strong>of</strong> the market and thus competition as such because where competition as such is<br />
damaged, disadvantages <strong>for</strong> the consumers are also to be feared.<br />
10 Opinion in the Oscar Bronner case 231 (Oscar Bronner v Mediaprint C-7/97 [1998 ]<br />
ECR I-7791).<br />
11 British Airways v Commission 264.