Title: Special responsibility of undertaking in dominant position Author: Iva Čechráková Department: Department of Business Law Supervisor: JUDr. Daniel Patěk, Ph.D Abstract: This thesis deals with the doctrine of special responsibility of the dominant undertaking and related issues. The special responsibility of the dominant undertaking is the obligation not to allow its conduct to impair genuine undistorted competition on the common market. The doctrine of the special responsibility is tied to the prohibition on abuse of such position. One concept could not be assessed without the other, because the concept of special responsibility of the dominant undertaking is a fundamental principle for the application of the prohibition on abuse of such position. Based on that it is necessary to describe in this thesis the prohibition on abuse of dominant position together with selected prohibited practices, in which the special responsibility of the dominant undertaking is reflected. This responsibility presupposes a higher standard of vigilance reflected in the conduct of such an undertaking, because an undertaking in dominant position on the relevant market could not take all actions that the other undertakings lacking such market power could do. The question of the superdominant undertakings and the scope of...

The purpose of this master thesis is to define the term "dominant position" of an undertaking under the EU Competition Law and to find out, what circumstances are decisive in order to be able to identify existence of a dominant position. The second part of the thesis focuses on actual problems connected with the dominant undertakings, namely the standardization and the effectiveness of the interventions of competition authorities into the actions of dominant undertakings on rapidly developing IT markets. The thesis deals with the concept of dominant position and does not address particular types of abusive behaviour enumerated in Article 102 (a) - (d) TFEU. The first chapter briefly describes the system of EU Competition Law. The focus is directed on agreements distorting competition (Art. 101 TFEU), abuse of dominant position (Art. 102 TFEU) and control of concentrations between undertakings (Council Regulation No. 139/2004). The second chapter looks at the term "dominant position" of an undertaking and its delimitations. The subchapters describe definition of relevant market, market share, market power and other market conditions which shall be taken into account in the dominant position analysis. Space is further devoted to the existing dominant position on the neighbouring market and to the...

The pharmaceutical market is a billon euro industry and the competition on the market is highly intensive. Primarily there are two competitors on the market, partly the originators which provide the market with new drugs, and partly the generics which produce copies of the originators‟ drugs. The originators are able to be granted patent protection of the drug under the European patent system, provided that the drug fulfils the requirements for patentability. During the period of patent protection the generics are not able to produce copies of the drug, but once the duration of the patent has expired the generics are able start the production. Thus, in order to hinder the generics to make copies of the drug, the originators apply various patent strategies. This has been noted by the European Commission, which conducted a sector inquiry of the pharmaceutical market in 2009. The presentation of the competition within the market focused on the applied strategies by the originator and concluded that all measures will be taken to hinder restrictions on the competition. In conjunction, the General Court judged in a recent case that the originator AstraZeneca constituted an infringement of the competition law when their strategies were applied. The complexity of determine whether a strategy is lawful or not, is due to the interface between the intellectual property law and the EC competition law. This implies that the strategy can be lawful under the IP law but unlawful under the competition law. The Court has established that any strategy, regardless of its legality under the IP law, constitutes an infringement of the competition law if it might restrict the competition. The Courts do not provide sufficient guidelines of the conditions that constitute the infringement. Consequently, the strategies‟ legality is at present time uncertain.

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Reference 1 1 Abstract - Abuse of a dominant position and the concept of relevant market The main aim of this thesis was firstly to describe the definition of abuse of dominant position constitute as one of the pillars of competition law (except for agreements distorting competition and illegal merger) and secondly to define the concept of the relevant market in accordance with the interpretation of rules on competition and the case law of the European Commission, the Court of First Instance, European Court Justice and the Office for Protection of the Competition. The introductory chapters I have tried to acquaint potential readers especially with the interpretation of key concepts, facilitating global orientation through the issue of competition and its distortion or restriction. Mainly to work with concepts such as competition, competition law, cartel law, undertaking, company, etc. Without explanation and interpretation of these key concepts could seldom be properly grasp the issue of abuse of dominant position. In the next section, I focus on issues describe the subject of my thesis and a dominant market position and its forms of abuse. A comprehensive interpretation of the issue greatly assists the Community case-law for this purpose I chose the most significant cases clarifying fundamental questions...

The thesis introduces thorough analysis of current approach towards margin squeeze practice, an abuse of dominant position by vertically integrated entity. For proper categorization, definition and understanding of the basic assumptions behind the strategy of margin squeeze and its application, the paper presents necessary conceptual apparatus. Further the paper deals also with regulatory framework of abuses of dominant position, national as well as international. In the practical section the paper introduces margin squeeze strategy within telecommunication industry and its regulatory framework in the Czech republic and brings recommendations for ex-ante margin squeeze testing in relation with current European regulators policy updates following the dynamic technological development of the industry.

L’application des règles de concurrence de l’Union européenne au secteur de l’aviation présente un caractère spécial. Les rapprochements des compagnies aériennes sous formes d’alliances ou concentrations sont à première vue indispensables, afin de garantir leur viabilité et mieux desservir les besoins des voyageurs. La pression concurrentielle exercée par les différents moyens de transports et la globalisation des échanges conduisent vers cette voie. Or, la consolidation du marché aérien peut avoir des conséquences néfastes au détriment des consommateurs. Structure oligopolistique, organisation des gros opérateurs en réseaux (hub-and-spoke system), insuffisance des infrastructures, coûts énormes d’exploitation ainsi que protectionnisme au niveau international, constituent des barrières considérables à l’entrée de nouveaux concurrents et peuvent conduire à des pratiques abusives. La transparence tarifaire et les accords de coopération peuvent favoriser les cartels entre transporteurs aériens. La Commission évalue la position des parties et les risques à la concurrence sur des liaisons déterminées (paires de villes). Cette méthode de délimitation du marché pertinent au transport aérien suscite une polémique de la part notamment des compagnies aériennes qui soutiennent une approche fondée sur la concurrence entre réseaux. Ce débat, montre l’évolution du secteur de l’aviation et la nécessité de prendre toujours en compte les nouvelles données. Le maintien d’une concurrence efficace au secteur de l’aviation n’est pas un objectif en soi, mais un instrument de la politique européenne pour la création du « ciel unique européen ». L’intervention des autorités de l’Union européenne au secteur de l’aviation ne se limite pas à une application rigoureuse des règles de concurrence mais vise à éliminer préalablement les phénomènes anticoncurrentiels par l’adoption d’un cadre législatif. / The application of European Union’s competition rules to the aviation sector presents a special character. The rapprochement of air companies either by the formation of alliances or mergers seem to be necessary. Indeed, it can guarantee the existence of a company as well as it serves the needs of travellers. The competitive pressure exercised by the different existing means of transportation and the globalisation of exchanges lead to this behaviour. But this consolidation of the air market can have harmful consequences for consumers. Oligopolistic structures, the hub-and-spoke system, insufficiency of infrastructures, enormous costs of exploitation along with protectionism at an international level, constitute considerable barriers for new competitors and could lead to abusive practices. Tariff transparency and cooperative agreements can furtherer cartels in between air transporters. The Commission assesses the position of the parties and competitive risks on specific routes (city pairs). This method of delimitation of the market for air transport has created a polemic, especially from the airline companies supporting an approach based on competition between networks. This debate shows the evolution of the aviation sector and the necessity of always taking into consideration new data. The upholding of an efficient competition system within the aviation sector is not an objective in itself, but means of European politic for the creation of a “Single European Sky”. The intervention of European authorities within the aviation sector is not limited to a rigorous application of competition rules but aims first at eliminating anticompetitive phenomenon by adopting a legislative framework.

Abuse of a dominant position - the concept of abuse and modes of abusive conduct Abstract This thesis deals with an abuse of dominant position, specifically with concept of abuse as such and subsequently with individual abusing practices. Article 102 TFEU as well as § 11 ZOHS do not define concept of abuse, it is therefore necessary to analyze case law for their understanding. The same apply in case of individual abusing practices. This analysis is fitted into the wider framework which consists in exploring the object of Article 102 and the method of its application, particularly in regards to Commision's effort to modernization. The main aim of the thesis is critical reflection of case law in the context of searching of purpose of Article 102, not comprehensive and detailed review. The thesis is composed of three chapters. Chapter One characterizes basic objectives of Article 102 and method of its application. Due to brief text of Article 102, the objects of the Article are really crucial for its interpretation and application. In the same way assessment methods can fundamentally change and shift use of Article 102. Basically there are two different objectives and two different methods. Objectives are ordoliberal economic freedom protecting competition as a process and consumer welfare pursuing growth of...

Protection of business competition - Abuse of dominant position The main objective of this thesis is a comprehensive analysis of the term "abuse." In a wider complex, thesis deals with a question of the present aim and prevailing method of application of provision 102 TFEU in order to find out whether and if yes, to what extent is current approach compatible with the modernization process of the application of article 102 TFEU declared by the Commission. Thesis deals with a question whether decisional practise is capable to react on a challenge made by so called new economy sector. Thesis consists of five substantial chapters. The first chapter sums up historical development of the 102 prohibition in Europe and USA law with a particular focus on the objective behind the text of the relevant provisions and decisions and its changes in time. The second chapter zooms to modernization process in relation to Art. 102. The central chapter analyses in detail the features of the general definition of an abuse arising from the decision of Hoffmann-La Roche, namely: i) a special responsibility of the undertaking; ii) the objective nature of the abuse and the effect of conduct on competition; iii) competition on the merits. An analysis of the concept of anticompetitive foreclosure follows. The concept of...

Doctrine of essential facilities under Czech and European law "Essential facilities doctrine" is a term used to describe a set of rules concerned with a dominant undertaking refusing to supply a crucial resource, over which it holds an exclusive control, to its competitors who need the resource to remain in business. This thesis focuses on the doctrine's applications in the context of an abuse of a dominant position, but the role the doctrine plays in regulation of network industries is mentioned as well. The main goal of the thesis is to define conditions under which the owner of the crucial resource - described as "an essential facility" in the thesis - abuses his dominant position by refusing to supply a competitor who is willing to pay a reasonable price for such access. The method primarily used to achieve the goal is a careful analysis of primary legal sources accompanied by studies of the relevant literature. The opinions and conclusions expressed in the afore-mentioned sources are critically evaluated by the thesis's author who presents his own opinions and tries to justify them by legal arguments. Chapter One explains some specific terms used in the text. Chapter Two describes a conflict between two core principles that have to be evaluated when the rules of mandatory access are defined or...