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Exploitative abuse and abuse of economic dependence: What can we learn from the industrial organization approach?

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  • Bougette, Patrice
  • Budzinski, Oliver
  • Marty, Frédéric

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

  • Bougette, Patrice & Budzinski, Oliver & Marty, Frédéric, 2017. "Exploitative abuse and abuse of economic dependence: What can we learn from the industrial organization approach?," Ilmenau Economics Discussion Papers 111, Ilmenau University of Technology, Institute of Economics.
  • Handle: RePEc:zbw:tuiedp:111
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    Cited by:

    1. Frédéric Marty, 2021. "Competition and Regulatory Challenges in Digital Markets: How to Tackle the Issue of Self-Preferencing?," Working Papers halshs-03227392, HAL.
    2. Budzinski, Oliver & Gänßle, Sophia & Lindstädt-Dreusicke, Nadine, 2021. "Wettbewerb und Antitrust in Unterhaltungsmärkten," Ilmenau Economics Discussion Papers 147, Ilmenau University of Technology, Institute of Economics.
    3. Noskova, Victoriia, 2021. "Voice assistants as gatekeepers for consumption? How information intermediaries shape competition," Ilmenau Economics Discussion Papers 161, Ilmenau University of Technology, Institute of Economics.
    4. Rosa-Branca Esteves & Francisco Carballo-Cruz, 2021. "Access to Data for Personalized Pricing: Can it raise entry barriers and abuse of dominance concerns?," NIPE Working Papers 05/2021, NIPE - Universidade do Minho.
    5. Budzinski, Oliver & Gänßle, Sophia & Stöhr, Annika, 2020. "The draft for the 10th amendment of German competition law: Towards a new concept of "Outstanding relevance across markets"?," Ilmenau Economics Discussion Papers 142, Ilmenau University of Technology, Institute of Economics.
    6. Patrice Bougette & Frédéric Marty, 2020. "Information Exchange among Firms: The Coherence of Justice Brandeis' Regulated Competition Approach," GREDEG Working Papers 2020-56, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised Feb 2021.
    7. Frédéric Marty & Thierry Warin, 2020. "Keystone Players and Complementors: An Innovation Perspective," Working Papers hal-03029748, HAL.
    8. Frédéric Marty, 2021. "The concentration of digital markets: How to preserve the conditions for effective and undistorted competition?," SciencePo Working papers Main halshs-03321697, HAL.
    9. Oliver Budzinski & Victoriia Noskova & Xijie Zhang, 2019. "The brave new world of digital personal assistants: benefits and challenges from an economic perspective," Netnomics, Springer, vol. 20(2), pages 177-194, December.
    10. Safieddine Bouali, 2020. "Covid-19 Pandemic and Abuse of Economic Dependence. Short-run Market Vulnerability and Exploitative conduct [Pandémie Covid-19 et abus de dépendance économique. Vulnérabilité du marché à court term," Working Papers hal-02564678, HAL.
    11. Budzinski, Oliver, 2020. "The economics of international competition policy: New challenges in the light of digitization?," Ilmenau Economics Discussion Papers 135, Ilmenau University of Technology, Institute of Economics.
    12. Frédéric Marty, 2020. "Is the Consumer Welfare Obsolete? A European Union Competition Law Perspective," GREDEG Working Papers 2020-13, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    13. Budzinski, Oliver, 2021. "Wettbewerbsordnung und digitale Medienmärkte," Ilmenau Economics Discussion Papers 153, Ilmenau University of Technology, Institute of Economics.
    14. Budzinski, Oliver & Gänßle, Sophia & Lindstädt-Dreusicke, Nadine, 2021. "Data (r)evolution - The economics of algorithmic search and recommender services," Ilmenau Economics Discussion Papers 148, Ilmenau University of Technology, Institute of Economics.
    15. Budzinski, Oliver & Gruésevaja, Marina & Noskova, Victoriia, 2020. "The economics of the German investigation of Facebook's data collection," Ilmenau Economics Discussion Papers 139, Ilmenau University of Technology, Institute of Economics.
    16. Frédéric Marty & Thierry Warin, 2020. "Digital Platforms' Information Concentration: From Keystone Players to Gatekeepers," CIRANO Working Papers 2020s-70, CIRANO.
    17. Michael G Jacobides & Ioannis Lianos, 2021. "Ecosystems and competition law in theory and practice [Ecosystem as structure: an actionable construct for strategy]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(5), pages 1199-1229.

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    More about this item

    Keywords

    exploitative abuse; abuse of economic dependence; competition law; European Commission; effects-based approach;
    All these keywords.

    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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