NEWS

Power Play: EU’s New Rules on Market Giants’ Exclusionary Tactics

The European Union has drafted new guidelines on applying Article 102 of the Treaty on the Functioning of the European Union, which prohibits dominant companies from engaging in abusive exclusionary practices.

These guidelines aim to establish principles for determining the abuse of dominant market positions, addressing both single and collective dominance. They outline factors for assessing market dominance, including market shares and entry barriers. The guidelines introduce the concept of “competition on merits” and provide a framework for evaluating whether conduct departs from this standard. They also establish criteria for determining the capability of practices to produce exclusionary effects.

Specific legal tests have been developed for five types of abuse: exclusive dealing, tying and bundling, refusal to supply, predatory pricing, and margin squeeze. The guidelines also address objective justifications for certain conducts, including necessity and efficiency defenses. While not legally binding, these guidelines are expected to enhance legal certainty in EU competition law enforcement.

Montenegro is not a member state of the European Union but rather a candidate country for membership, which status was granted on December 17, 2010. As such, European Union regulations are not directly applicable in Montenegro, however, many rules have been harmonized with EU directives due to the harmonization process (acquis Communautaire).

Dajana Drljević, an Associate from the JPM Podgorica office, is providing an extensive review of these guidelines, offering valuable insights into their implications and applications.

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