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Exploitative Abuse and Abuse of Economic Dependence: What can we Learn from the Industrial Organization Approach?

Author

Listed:
  • Patrice Bougette

    (Université Côte d'Azur
    GREDEG CNRS)

  • Oliver Budzinski

    (Technische Universität Ilmenau)

  • Frédéric Marty

    (Université Côte d'Azur, France
    GREDEG CNRS)

Abstract

This article aims to provide a detailed analysis of the concept of economic dependence and exploitative abuse through their evolution in competition law and economics and in European case law. First, while the theoretical roots of these concepts may be found in economic theory, we show that the issue has long been ignored or only reluctantly considered in competition law enforcement, mainly because of a lack of available and reliable economic criteria. Second, although its primary objective was to measure market power in an oligopoly context, we examine how current empirical industrial organization methodology allows a sophisticated measure of the economic dependence among suppliers and distributors. Third, we discuss the possibility of relying on the industrial organization approach to address these issues.

Suggested Citation

  • Patrice Bougette & Oliver Budzinski & Frédéric Marty, 2017. "Exploitative Abuse and Abuse of Economic Dependence: What can we Learn from the Industrial Organization Approach?," GREDEG Working Papers 2017-37, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  • Handle: RePEc:gre:wpaper:2017-37
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    exploitative abuse; abuse of economic dependence; competition law; European Commission; effects-based approach;

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts

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