9.4.2009
News

Commission’s priorities for assessing abuse of dominant position

The European Commission has issued instructions for enforcement priorities in application of Article 82 of the EC Treaty against abusive exclusionary conduct by dominant undertakings, which discriminate against other competitors on the market (Official Bulletin C 45 dated 24 February 2009). The document should assist companies in anticipating whether the Commission will intervene with regard to their  particular conduct. 

The Commission emphasizes in these instructions that types of conduct deemed most harmful to consumers shall be focused on. Consumers benefit from competition by lower prices, better quality and a wider choice of new or improved goods and services. Dominant undertakings should not exclude competitors by any means other than competition, by the quality of products or services they produce or provide. It will therefore be crucial for the Commission to protect an effective competitive process rather than simply protecting competitors.

As far as concerns the assessment of the existence of any dominant position and the size of market power, the Commission states that it may conclude an undertaking fails to face sufficient competition pressure even though there is evidence of prevailing potential or actual competition. Such cases shall be deemed to include situations in which a competitor is able to keep on increasing price above the competitive level for a fairly long period of time.

The Commission claims that it has already applied the approach based upon assessment of impacts of exclusionary conduct on the market to several recent cases, such as Wanadoo (IP/03/1025), Microsoft (IP/04/382) or Telefonica (IP/07/1011).

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Our team provided legal advice to BigBoard Praha, a leading player in the premium outdoor advertising market in the Czech Republic, in connection with its refinancing. Founded in 1993, the BigBoard Group is the largest provider of premium outdoor advertising in the Czech Republic, with an approximately 70% market share and annual turnover of around CZK 2 billion. Its advertising media cover key locations across the country, including the Prague metro and major transport hubs.

Our team provided legal advice to BigBoard Praha, a leading player in the premium outdoor advertising market in the Czech Republic, in connection with its refinancing. Founded in 1993, the BigBoard Group is the largest provider of premium outdoor advertising in the Czech Republic, with an approximately 70% market share and annual turnover of around CZK 2 billion. Its advertising media cover key locations across the country, including the Prague metro and major transport hubs.

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The KŠB team provided legal advice to the investment group Sandberg Capital on the completion of a majority investment in HotelTime Solutions, one of the leading providers of cloud-based software for hotel operations management.

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KŠB assisted Seyfor with the extension of its financing provided by Raiffeisenbank, Tatra banka and, newly, Slovenská sporiteľňa.

The KŠB team provided legal advice to its long-standing client Seyfor in connection with the continuation and expansion of its syndicated financing. The existing lending banks, Raiffeisenbank Czech Republic and Tatra banka, decided to continue supporting Seyfor’s growth, with Slovenská sporiteľňa joining the financing as a new lender.

The KŠB team provided legal advice to its long-standing client Seyfor in connection with the continuation and expansion of its syndicated financing. The existing lending banks, Raiffeisenbank Czech Republic and Tatra banka, decided to continue supporting Seyfor’s growth, with Slovenská sporiteľňa joining the financing as a new lender.