The EU Competition Law Treatment of Dominant Firms

Under EU competition law, a dominant firm is defined as a company that holds a substantial market power in a particular market. This means that the company is able to behave independently of its competitors, customers and ultimately of consumers. EU competition law provides for specific rules for the treatment of dominant firms, as their conduct may have a greater impact on competition than that of companies without market power. In particular, EU competition law prohibits the abuse of a dominant market position by a dominant firm. Examples of abusive conduct include:

• Charging excessively high prices

• Refusing to supply goods or services to customers

• Imposing discriminatory conditions on customers

• Tying or bundling products in a way that harms competition

• Using predatory pricing to drive competitors out of the market

The EU has the power to investigate and take action against dominant firms that engage in such conduct. This can include imposing fines and ordering the company to stop the abusive conduct. It's important to note that the fact of being a dominant company is not illegal per se, but the company has a special responsibility not to abuse its position in the market.