Antitrust tools

Some specific problems in which we have gained significant experience include:

 

  • Assessment of market power
    In our analysis we routinely go beyond a simplistic analysis of market shares, which may misrepresent actual market power, and we carefully assess the industry dynamics and the actual and future competitive constraints faced by market participants to provide more robust and complete analysis of the markets and provide the best possible advice for our clients.
     
  • Price concentration analysis
    Our economists have experience in conducting price concentration studies, analysing relationships between prices and measures of industry concentration across geographic areas, which is often helpful to determine if high concentration is indicative of significant market power.
     
  • Abuse of dominant position
    We have developed economic analyses to establish or rebut dominance and we have produced careful analyses of the impact of practices that could foreclose potential competitors and allow incumbents to protect or expand their market power - such as exclusive dealing or excessive pricing - helping our clients and competition authorities to properly evaluate allegations of abuse of dominant position.
     
  • Tying and bundling
    While the economic theory of tying and bundling is in general inconclusive and allows both pro- and anti-competitive effects, our research-oriented attitude and focus on factual circumstances and empirical data allow us to determine whether pro- or anti-competitive effects dominate in a specific case.
     
  • Access pricing and margin squeezes
    We have extensive experience in determining how access prices, price discrimination and potential margin squeezes affect competition in industries such as telecommunications.
     
  • Vertical restraints
    We have extensive experience of analysing the impact of vertical restraints on competition and in numerous cases we have worked to prepare a careful and thoughtful assessment of whether contractual vertical restraints constitute restriction of competition under Article 101 or Article 102.
     
  • Price discrimination
    Our work in the area of price discrimination skillfully combines extensive working knowledge of economic theory with empirical facts to determine whether observed variable price-cost margins have a natural explanation, based on economic theory, and are a business necessity, or if they constitute a harmful conduct violating competition policy objectives.
     
  • Excessive pricing/profitability
    In our analyses we have often had to determine if prices and profits are indeed excessive or if they can be attributed to other objective and relevant factors such as risk premiums and we have identified constraints that might have prevented a competitive response, which in well-functioning markets typically brings excessive profits and prices down.
     
  • Predatory pricing
    E.CA staff have developed methods to assess predatory pricing and have critically analysed the various cost standards employed in many well-known predation cases.