Page 88 - Azerbaijan State University of Economics

STUDYING OF SPECIAL PRACTICAL ISSUES OF ABUSE OF DOMINANCE

how the practice at issue improves efficiency. Does it generate incentives to

provide better service? Does it increase the amount of promotion or
advertising? Do consumers benefit from lower prices or greater product

availability?

In investigating an alleged abusive practice, the competition agency
should obtain information from various sources including: customers of the

dominant firm, rivals of the dominant firm, government officials who regulate
some aspect of the dominant firm's behavior, competition officials in other

countries, and officials representing the dominant firm. The views of rivals, of
course, must be viewed with some skepticism because their interests are not

necessarily consistent with the goal of competitive markets, and it is important

not to equate harm to competitors with harm to competition. In this respect the
views of customers are more reliable. How do they evaluate the effects of the

alleged practice? Do the practices lower or increase prices and costs? Do they

improve incentives? Or, do they tend to raise barriers to entry and expansion
without any obvious efficiency rationale? Careful attention to these issues will

ensure that abuse of dominance provisions are an effective tool for competition
agencies in promoting a healthy and vibrant market economy.

References

1. Anderson, R.J., S. D Khosla, and J. Monteiro. 1996.
2.“Market Definition in Abuse of Dominant Position Cases Act.” In
OECD Committee on Competition Law and Policy. Proceedings of a
Roundtable on Abuse of Dominant Position. OECD 89-I 12. Paris:
Organisation for Economic Co-operation and Development.
3. Autorita Garante della Concorrenza e del Mercato.1993. Annual
Report (in Italian). Rome.

87