The proposition that a competition authority would get involved in a discussion of whether a price is “excessive” appears initially as a lost case. Actual cases on predatory prices are also infrequent/rare [1], because there is a feeling that it is particularly difficult for a competition authority to determine the right level of a price and the actual cost of a good or service.

With regard to excessive prices, difficulties are compounded by the perceived pre-requisite of defining an “adequate” rate of return on investment or an “adequate” cost mark-up or profit margin. (more…)

The Commission and the Spanish competition authorities have examined two similar mergers in the pay-tv markets in Spain and Italy respectively.

Both decisions deal with similar material situations and the assessment of the impact of the respective merger on competition is largely based on common grounds.

However, the decisions adopted by each authority are widely divergent as to the type of conditions needed to address the competition concerns. The conditions imposed to authorize the mergers create a very different environment for cable operators to compete in the Italian and Spanish markets for pay-tv and, more importantly, in the telecommunications services market. (more…)