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Excessive intervention? A review of recent excessive pricing investigations

Bojana Ignjatovic and Paul Hutchinson

Keywords: abuse of dominance; Article 102 TFEU; Chapter 2 prohibition; excessive pricing; pharmaceuticals

This article considers the implications of a number of recent cases and court judgments on excessive pricing. It first outlines the economic risks associated with antitrust interventions on excessive pricing. It then seeks to identify a narrow set of specific market conditions to which competition authorities could consider limiting their use of competition law against alleged excessive pricing. The article also highlights the practical challenges in implementing the economic and legal tests for excessive pricing. Finally, it considers whether competition policy is the most appropriate tool with which to ensure that consumers are not charged excessive prices.

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