Behrang Kianzad, Are excessive pricing cases few and far between? A quantitative analysis of fifty years of European jurisprudence 1971–2021, September 2023, Concurrences N° 3-2023, Art. N° 113222, http://www.concurrences.com
This article examines the prevalence and historical context of excessive pricing cases within European competition law. It commences by tracing the roots of excessive pricing regulations back to ancient legal systems, highlighting that these prohibitions are deeply entrenched in legal history.
Despite their long history, excessive pricing cases often raise eyebrows in contemporary competition law discussions. Many consider them “controversial” and “unconventional,” suggesting that they should be used sparingly. However, this article aims to debunk the notion that such cases are rare by presenting quantitative evidence.
The crux of the article lies in its quantitative analysis, which spans five decades, from 1971 to 2021. It uncovers a total of 28 cases handled at the European level, including the European Commission, General Court, and Court of Justice, alongside an additional 99 cases at the national level across various European Member States.
The article delves into the legal framework surrounding excessive pricing, notably referencing the “Cost Plus” test established in the United Brands case. This test evaluates excessive pricing by comparing prices to the economic value of products, emphasizing a reasonable profit margin.
Economically, there’s a debate about the necessity of excessive pricing regulations, with varying opinions ranging from outright denial of their existence to strong advocacy for their enforcement as a core aspect of competition law.
Interestingly, the article notes an increasing trend in excessive pricing cases across the European Union, challenging the perception that competition authorities are reluctant to address them.
Beyond the European level, the article explores cases handled by national competition authorities, acknowledging the complexities stemming from differing national laws and practices. It also highlights the diversity of sectors involved in these cases, ranging from transportation to copyright royalties.
In conclusion, this article dispels the belief that excessive pricing cases are infrequent. It presents a comprehensive analysis of the legal, economic, and historical aspects of these cases within European competition law, demonstrating that they are more prevalent and actively pursued than commonly believed.
At the end of the article, Kienzad gives a comprehensive list of excessive price cases of EU and NCAs, which would be quite meaningful for any interested in excessive price cases in antitrust practice.