EU revises antitrust guidelines for dominant companies with more than 40% market share

  • EU regulators revised guidelines on conduct by companies with dominant market positions.
  • Companies with more than 40% market share may qualify as dominant under the guidance.
  • Twenty-eight academics and economists warned the rules could justify unfair dominance.

EU regulators revised guidelines on when companies with more than 40% market share may defend conduct that could otherwise attract penalties for anti-competitive behavior. The European Commission said dominance used to pressure rivals may be acceptable when it reduces raw-material use, cuts pollution, increases recyclable-product use, strengthens supply-chain resilience or delivers consumer cost savings. The guidance concerns Article 102, a powerful EU competition provision that has led to hefty fines for Apple, Google and Microsoft over conduct authorities found had thwarted rivals. It also aims to help companies determine whether they are dominant and identify the relevant markets. A joint letter from 28 leading academics and economists, including former senior Commission economists, warned Commission President Ursula von der Leyen and EU antitrust chief Teresa Ribera that the rules could be exploited to justify unfair dominance.

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