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Introduction Unilateral Conduct Working Group

Introduction Unilateral Conduct Working Group. Dr Bernhard Heitzer, President of the Bundeskartellamt. Dominance/SMP assessment: Questionnaire responses and the report show a great deal of commonalities across jurisdictions.

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Introduction Unilateral Conduct Working Group

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  1. IntroductionUnilateral Conduct Working Group Dr Bernhard Heitzer, President of the Bundeskartellamt

  2. Dominance/SMP assessment:Questionnaire responses and the report show a great deal of commonalities across jurisdictions • 80 % of the responding jurisdictions use a „behavioural“ definition of dominance / substantial market power • All responding jurisdictions use a comprehensive set of criteria to assess dominance / substantial market power • Market share and barriers to entry or expansion (and thus durability of dominance/SMP) seen as the two most important criteria • Striking commonalities on how all these elements are assessed by competition authorities in practice Good basis to start work on recommendations

  3. However, there are alsodifferences in dominance/SMP assessment • 19 of the responding jurisdictions use either a dominance or a safe harbour presumption or both, whereas 16 jurisdictions do not • 12 of the 15 jurisdictions that use a dominance presumption have set it at 33% - 50%, whereas Brazil has set it at 20%, USA 70% and Canada 80% • In 15 responding jurisdictions intervention is also possible without a pre-existing dominant position, whereas it is not in 20 responding jurisdictions

  4. State-created monopolies • Reasons provided for the creation and/or maintenance of anti-competitive regulation and state-owned enterprises vary, e.g. “market unable to fulfil a public service mission”, safety and health considerations • Liberalization and privatization are typically aimed at increasing economic efficiency and introducing and promoting competition • Competition authorities can play an effective role in the liberalization and privatization processes, through enforcement and advocacy • Liberalization should continue around the world and competition authorities should play an important role in this process

  5. Practical relevance of UCWG report:An example from the BKartA‘s practice • Bundeskartellamt has brought a series of cases against gas and electricity suppliers both at wholesale and retail level, e.g. long-term gas supply contracts • Objectives: Goals of promoting competition and promoting consumer welfare coincide • Dominance/SMP assessment: Crucial role of barriers to entry • Energy markets as state-created monopolies: Full liberalization in 1998, but still not fully competitive markets • Advocacy example: National gas price comparison

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