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Price Discrimination Under Ec Competition Law: Another Antitrust Doctrine In Search Of Limiting Principles?

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  • Damien Geradin
  • Nicolas Petit

Abstract

The main objective of this article is to shed light on the compatibility of price discrimination with EC competition law. We offer an analytical framework which distinguishes between different categories of price discrimination depending on their effects on competition. Our framework suggests that different tests are needed to assess the lawfulness of price discrimination practices under EC competition law. A related objective of the article is to show that Article 82(c), the main Treaty provision dealing with price discrimination, should only be applied to the limited circumstances where a non-vertically integrated dominant firm price discriminates between customers with the effect of placing one or several of them at a competitive disadvantage vis-a-vis other customers (secondary line injury price discrimination). In contrast, Article 82(c) should not be applied to pricing measures designed to harm the dominant firm's competitors (first line-injury price discrimination) or to partition the single market across national lines.

Suggested Citation

  • Damien Geradin & Nicolas Petit, 2006. "Price Discrimination Under Ec Competition Law: Another Antitrust Doctrine In Search Of Limiting Principles?," Journal of Competition Law and Economics, Oxford University Press, vol. 2(3), pages 479-531.
    • Handle: RePEc:oup:jcomle:v:2:y:2006:i:3:p:479-531.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhl013
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    Citations

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    Cited by:

    1. Ioannis N. Pinopoulos, 2022. "Input Price Discrimination, Two‐Part Tariffs and Bargaining," Journal of Industrial Economics, Wiley Blackwell, vol. 70(4), pages 1058-1090, December.
    2. Chin-Sheng Chen, 2017. "Price Discrimination in Input Markets and Quality Differentiation," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(3), pages 367-388, May.
    3. Bouckaert, J.M.C. & Degryse, H.A. & van Dijk, T., 2008. "Price Discrimination Bans on Dominant Firms," Discussion Paper 2008-3, Tilburg University, Center for Economic Research.
    4. Ioannis N. Pinopoulos, 2020. "Input Price Discrimination and Upstream R&D Investments," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(1), pages 85-106, August.
    5. Zenger, Hans, 2012. "The marginal price effects of antitrust rules against price discrimination," Economics Letters, Elsevier, vol. 117(3), pages 921-923.
    6. Damien Geradin & Christos Malamataris, 2014. "Application of EU competition law in the postal sector: overview of recent cases," Chapters, in: Michael A. Crew & Timothy J. J. Brennan (ed.), The Role of the Postal and Delivery Sector in a Digital Age, chapter 9, pages 116-130, Edward Elgar Publishing.
    7. Edward Iacobucci & Francesco Ducci, 2019. "The Google search case in Europe: tying and the single monopoly profit theorem in two-sided markets," European Journal of Law and Economics, Springer, vol. 47(1), pages 15-42, February.
    8. Zevgolis Nikolaos E. & Fotis Panagiotis N., 2019. "A Rule of Reason Approach for Passive Minority Interests within the European Union," Review of Law & Economics, De Gruyter, vol. 15(3), pages 1-41, November.
    9. Marco Botta & Klaus Wiedemann, 2020. "To discriminate or not to discriminate? Personalised pricing in online markets as exploitative abuse of dominance," European Journal of Law and Economics, Springer, vol. 50(3), pages 381-404, December.
    10. Bandara, Yapa Mahinda & Nguyen, Hong-Oanh, 2016. "Influential factors in port infrastructure tariff formulation, implementation and revision," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 220-232.
    11. Nikolaos Zevgolis & Panagiotis Fotis, 2014. "Prohibition of parallel imports as a vertical restraint: per se approach or a misunderstanding?," European Journal of Law and Economics, Springer, vol. 38(2), pages 317-342, October.
    12. Chin-Sheng Chen & Hong Hwang, 2014. "Spatial Price Discrimination in Input Markets with an Endogenous Market Boundary," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 45(2), pages 139-152, September.

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