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Pricing below cost as potentional method of abusing dominant market position - Falcon case

Publication at Faculty of Law |
2021

Abstract

The basic attribute of any competitive relationship is the price, which is the motivation of competing competitors. Under EU antitrust rules, dominant companies have a responsibility not to abuse their powerful market position by restricting competition.

Under specific conditions, pricing below cost may constitute such abuse. České dráhy has been investigated by the European Commission for possible abuse of a dominant market position by alleged predatory pricing on the Prague - Ostrava route between 2011 and 2019.