Page 86 - Azerbaijan State University of Economics

STUDYING OF SPECIAL PRACTICAL ISSUES OF ABUSE OF DOMINANCE

market by new competitors. Vertical market restraints, however, may also

serve legitimate procompetitive purposes, such as preventing free riding.
Remedies in such cases should seek to deter anticompetitive conduct while

permitting contractual restrictions that achieve genuine efficiencies.

A checklist of possible remedies in abuse cases would include the
following:

- Order to cease the abusive behavior. This will usually be combined
with a fine if the infringement is continuing.

- Imposition of fines on the firm. Criteria for fixing fines include
gravity of the infringement, length in time of the infringement, effect of the

infringement, nonenforcement of the infringement, difficult market

conditions, size and profitability of the undertaking, cooperation of the
undertaking, state of the law, repeated infringement, continuation of

infringement following clarification of the law, governmental pressure, and

amount of unlawful profit from infringement.
- Fines on individuals and imprisonment (or both). Except in extreme

circumstances, however, these sanctions are inappropriate in abuse of
dominance cases, which typically do not involve criminal intent.

- Order to repay “undue profits.” In jurisdictions where such a
remedy is possible, however, it is rarely used because such a calculation is

extremely difficult to make.

- Divestment or division of firms.
- Order to take certain action, if, for instance, it is necessary to ensure

fair treatment of competitors or other market participants.
- Informal settlements. These can sometimes be preferable to lengthy

proceedings but should remain an exception.
- Award of damages.

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