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Introduction Unilateral Conduct Working Group Dr Bernhard Heitzer, President of the Bundeskartellamt
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Dr Bernhard HeitzerMoscow, 30 May 20072 Dominance/SMP assessment: Questionnaire responses and the report show a great deal of commonalities across jurisdictions 80 % of the responding jurisdictions use a „behavioural“ definition of dominance / substantial market power All responding jurisdictions use a comprehensive set of criteria to assess dominance / substantial market power Market share and barriers to entry or expansion (and thus durability of dominance/SMP) seen as the two most important criteria Striking commonalities on how all these elements are assessed by competition authorities in practice Good basis to start work on recommendations
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Dr Bernhard HeitzerMoscow, 30 May 20073 However, there are also differences in dominance/SMP assessment 19 of the responding jurisdictions use either a dominance or a safe harbour presumption or both, whereas 16 jurisdictions do not 12 of the 15 jurisdictions that use a dominance presumption have set it at 33% - 50%, whereas Brazil has set it at 20%, USA 70% and Canada 80% In 15 responding jurisdictions intervention is also possible without a pre- existing dominant position, whereas it is not in 20 responding jurisdictions
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Dr Bernhard HeitzerMoscow, 30 May 20074 State-created monopolies Reasons provided for the creation and/or maintenance of anti-competitive regulation and state-owned enterprises vary, e.g. “market unable to fulfil a public service mission”, safety and health considerations Liberalization and privatization are typically aimed at increasing economic efficiency and introducing and promoting competition Competition authorities can play an effective role in the liberalization and privatization processes, through enforcement and advocacy Liberalization should continue around the world and competition authorities should play an important role in this process
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Dr Bernhard HeitzerMoscow, 30 May 20075 Practical relevance of UCWG report: An example from the BKartA‘s practice Bundeskartellamt has brought a series of cases against gas and electricity suppliers both at wholesale and retail level, e.g. long-term gas supply contracts Objectives: Goals of promoting competition and promoting consumer welfare coincide Dominance/SMP assessment: Crucial role of barriers to entry Energy markets as state-created monopolies: Full liberalization in 1998, but still not fully competitive markets Advocacy example: National gas price comparison
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