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Equally efficient competitor test

October 2013

Economic Focus

 

The European Commission recommends using the equally efficient competitor test in abuse of dominance cases. The test helps distinguishing between the anticompetitive foreclosure and the competition on the merits. It verifies whether in the presence of a given practice of the dominant undertaking, an equally efficient competitor would be able to compete effectively in the market without incurring losses.

The test is quite general and may be applied to a variety of different cases. As discussed in detail in the article, it may be used in cases concerning predatory pricing, margin squeeze, bundled rebates or loyalty rebates.

The present article discusses possible uses the equally efficient competitor test. It first recalls how the test is applied in different types of antitrust cases. It next provides a more general discussion regarding various methodological choices arising in the application of the test.

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