For real?
Just found now, whilst doing research on energy markets:
“The European Court has stated that dominance can be presumed, in the absence of evidence to the contrary, where a company has a market share persistently over 50%. EU competition law takes a 25% share of the market as evidence of Significant Market Power“.
Not seen it? Read again (this time in bold):
“The European Court has stated that dominance can be presumed, in the absence of evidence to the contrary, where a company has a market share persistently over 50%. EU competition law takes a 25% share of the market as evidence of Significant Market Power“.
Shocking misreading of the EU case-law and almost certainly a crap erroneous statement from an economic standpoint.
Now, let’s just put theory into practice and follow Prof Simon’s recommendation. This shameful, unfortunate, interpretation of the case-law can be found in a Report entitled ”Conditions for truly competitive Gas markets in the EU” prepared by Energy Markets Ltd. (2005) for the British Department of Trade and Industry (see p.12).
(Image possibly subject to copyrights: source here)
PS1: Trying to turn the findings of my Phd into empirical recommendations, I am currently drafting a paper on abuse of collective dominance in the energy sector. Obviously, input, views, comments, feelings, are most welcome.
