Law and Economics EU/EC Competition Law Professional Career Programme (PCP) Yoshiharu, ICHIKAWA 2011/11/26

What we learned at the last session 1 Market power… offers a helpful preliminary filter to identify the sources of competition problem - four categorisation to price profitably above the competitive level (economic consideration) commercial power （ economic freedom ） ability to devise strategies that can harm rivals (post-Chicago) jurisdictional concept (threshold)

What we learned at the last session 1 Dominance (dominant position) in Article 102/82 In US, ‘a firm is a monopolist if it can profitably raise prices above the competitive level.’ (the Microsoft case) - ‘economic freedom is preserved…it is the defendant’s.’ In EU: - ‘protect the economic freedom of other market participants’

What we learned at the last session 1 Measuring market power - Market Definition ‘Market definition can be strategic’ ‘Who competes who?’ --- Apple’s case

Introduction to today’s session 1 ‘Market power’ is a changing, living concept. We must observe various spheres of ‘market power’. Student’s presentation

Chapter 5: Market Power 2 Market power in aftermarkets - Hugin decision (‘aftermarket’) How about the market of the right shoe for the left? Product differentiation and market power - Heinz case (monopolistic competition)

Chapter 5: Market Power 2 Market power in Article 81(101) - An evolving market power analysis (not safe habours, quasi per se…) From commercial power to market power

Course Schedule [updated] 1 11/10/01 Chapter 2-1, 2 [student A( TAKABAYASHI )] 11/10/08 Chapter 2-3, 4, 5, 6 [student B( Lecturer )] 11/10/15 Chapter 3-1, 2, 3, 4, 5 [student C( MERCKEN, CASTELLANE)] 11/10/22 Chapter 3-6, 7, 8 [student D( decided )] 11/10/29 class cancellation 11/11/05 Chapter 5-1, 2, 3 [student E( OSAWA, KIKUCHI )]

1 11/11/12 class cancellation (Sorry! I attend the international conference.) 11/11/19 class cancellation (Mita Festival) 11/11/26 - Chapter 5-4, 5, 6, 7 [student F( SAKAMOTO, TAKEDA )] - Mid-term examination (open-book) * pre-condition for qualification of this class --- if you are absent, please contact me. 11/12/03 class cancellation 11/12/10 Chapter 6-1, 2, 3, 4 [student G( Taiki, Takaaki)] 11/12/17 Chapter 6-5, 6, 7 [student H( Junichiro, Kenmei)] Course Schedule [updated] NEXT Session

1 11/12/24 Enforcement – Watch the movie ‘Informant!’ 12/01/14 Chapter 11-1, 2, 3 [student I( not yet decided )] At the same day, Submission of take-home exam and final discussion Course Schedule [updated]

Course web site: 1 My webpage: You can download the presentation I used in the session. Contact address: or from my Facebook page

Midterm Examination 2 Choose one of the following questions and answer that. (I will collect answer sheets at noon, no need for longer answer) 1.Explain the competing core values of EU competition law 2.Explain three major economic theories and their application for the US or the EU competition law Caution! Write down your name and the question number.