Excessive Pricing in Competition Law: Never say Never ?

Abstract

We discuss the treatment of excessive pricing in the European Union, comment upon the case-law, and indicate which exceptional circumstances might in our view justify resorting to excessive pricing actions. We propose a four-condition test: (1) high and non-transitory barriers to entry leading to a monopoly or near monopoly; (2) this (near) monopoly being due to current or past exclusive or special rights; (3) no effective means to eliminate the entry barriers; and (4) no sector regulator being competent to regulate the excessive prices.

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