Abuse of Dominant Position in the Electronic Communications Sector

Transcription

1 Abuse of Dominant Position in the Electronic Communications Sector Schriften zur Rechtswissenschaft, Band 160

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3 Pencho Kuzev Abuse of Dominant Position in the Electronic Communications Sector A critical analysis of competition and regulatory law and their practical implementation within the EU, Germany, Slovenia and Macedonia

4 Bibliografische Informationen der Deutschen Nationalbibliothek Die Deutsche Nationalbibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über abrufbar Coverdesign: Bojan Krtolica ISBN Wissenschaftlicher Verlag Berlin Olaf Gaudig & Peter Veit GbR / Alle Rechte vorbehalten. Dieses Werk ist urheberrechtlich geschützt. Jede Verwertung, auch einzelner Teile, ist ohne Zustimmung des Verlages unzulässig. Dies gilt insbesondere für fotomechanische Vervielfältigung sowie Übernahme und Verarbeitung in EDV-Systemen. Druck und Bindung: SDL Digitaler Buchdruck, Berlin Printed in Germany 36,00

5 Table of Contents: BIBLIOGRAPHY......xiii TABLE OF CASES...xix TABLE OF LEGISLATION....xxiii LIST OF ABBREVIATIONS...xxvii Introduction... 1 Chapter I - Abuse of a Dominant Position....6 I. Concept of abuse of dominance Introduction General Framework on the Application of Article 102 TFEU Approach of assessing abuse of dominant position Possible defences against findings of abuse of dominant position Objective justification Efficiency defence Refusal to supply and essential facilities The term Essential Facility The raise of the EFD in the American Antitrust Law Development of the Essential Facilities Doctrine in the EC Law The approach of the European Commission The approach of the European Court Instances Magil Case Ladbroke Case Bronner Case DG Competition Discussion Paper and Commission s Guidance on Refusal to start supplying an input CONCLUSION Chapter II - German Law on Telecommunications and the "new markets" Introduction vi

6 1.2 New markets and exemption of regulation Ex ante definition of new markets and exemption of regulation Ex post definition of new markets and exemption of regulation New markets and sustainable competition VDSL as new market VDSL as Essential Facility? Factor Essentiality Factor Indispensability Factor - Elimination/Impediment of Competition Factor - Objective Justification EU conformity of 9a of the German Law on Telecommunications Margin of discretion when implementing the regulatory framework Right of Levelling (Gradation) the Community Objectives Effective competition vis à vis sustainable competition Infringement of the consultation and consolidation procedure CONCLUSION Chapter III - European competition framework for electronic communications Introduction Relationship between the competition law and the sector-specific regulation Access Directive Market Definition under the Discussion Paper Market assessment procedure in the electronic communications Right of appeal Significant Market Power in the field of electronic communications Significant Market Power on closely related market Joint dominance in the EC law Joint dominance in the Electronic Communications Commission s Recommendation on the relevant markets vii

7 2.1 Retail level Access to the public telephone network at a fixed location Access to data at fixed location Wholesale network infrastructure access Wholesale broadband access Bitstream access Final Remarks.72 Chapter IV - Case Analyses I. Wanadoo España v. Telefónica The Definition of the Spanish broadband market Dominant position of Telefónica The applicability of Article 102 TFEU and the Essential Facility Doctrine Abuse of dominance in the form of Margin Squeeze Anti-competitive foreclosure - effect based approach Objective justification of Telefónica s conduct Final Observations II. Margin Squeeze - European Commission v. Deutsche Telekom AG..86 III. Infringement procedure against Intel Corporation Intel s market dominance Intel s abuse of dominant position regarding DELL Intel s abuse of dominant position regarding Hewlett Packard Intel s abuse of dominance regarding LENOVO Intel s abusive policy towards Media-Saturn Holding Intel s foreclosing exclusivity agreement with Media-Saturn Holding Intel's payment holdback Intel s agreements characteristics Unacceptable Objective Justification Abuse of dominant position Effects of the Intel s conduct Assessment of the Recapitulative Objective Justification viii

8 6.2.1 Meeting Competition Defence Efficiency defence Chapter V - The interaction of the antitrust policy and the sector-specific regulation in the Federal Republic of Germany Relationship between the German Competition Act and the Telecommunications Act Special control of abuse of dominance in TKG vis a vis general control in GWB Special control of anti-competitive practices General provision for specific control in the Telecommunications Act Legal Presumptions of anti-competitive conduct by an SMP Undertaking Eligibility to file an application against anti-competitive conduct by SMPundertaking Legal consequences in relation to undertaking abusing its power Significant Market Power in the Telecommunications Act Significant Market Power and the ex post character of 42 TKG Anti-Competitive Conduct in Levying and Agreeing Rates General provision of 28 TKG Objective justification Application of the special control and non-smp undertakings Legal presumptions for Anti-Competitive Conduct Abuse in the form of dumping prices Regulatory practice in identifying dumping prices Objective justification Abuse in the form of margin squeeze Abuse in the form of unreasonable bundling Cohabitation of the Federal Cartel Office and the Regulatory Authority German Regulatory Authority Legal status Structural independence ix

9 6.1.2 Political independence The Competencies of the Federal Network Agency (Bundesnetzagentur) Application of the norms prohibiting anti-competitive conduct II. The interaction of the anti-trust policy and the sector specific-regulation for the Electronic Communications in the Republic of Slovenia 131 Historical background Competition Act Electronic Communication Act General overview Dominant Position and the Significant Market Power Abuse of dominant position Post and Electronic Communications Agency Proceedings on anti-competitive conduct Competition on the market for electronic communications General overview Competition on the broadband access market Wholesale broadband access Market definition Remedies on the market for wholesale network access Competition on the mobile telephony market Market for access and call origination Market for voice call termination - Regulatory remedies Competition on the fixed telephony market Evaluation and recent developments. 147 CHAPTER VI - The interaction of the anti-trust policy and the sector specific-regulation for the Electronic Communications in the Republic of Macedonia Historical background I. Obligation arising from the Accession Partnerships with the EU II. Law on Electronic Communications Purpose of the Law on Electronic Communications x

10 1.1 Objectives of the Law on Electronic Communications Market Definition and Market Analyses The concept of Significant Market Power Macedonian Regulatory Authority Agency for Electronic Communications Legal Status Structural independence Political independence Organisational Structure Competencies of the AEC vis-à-vis the Ministry of Transport and Communications Competencies of the AEC vis a vis the Commission for Protection of Competition III. Law on protection of competition Objectives of the Competition Act The prohibition of abuse of dominance in the Macedonian Competition Act Commission for Protection of Competition Abuse of dominance cases dealt by the Commission for protection of competition Exploitative abuses Exclusionary abuses IV. Competition on the market for electronic communications Fixed telephony market Market definition and market analysis in the regulatory practice The state of competition on the fixed telephony market Market shares Infrastructure control Easier access to the capital markets Product-diversification Absentee customers buying power Competition on the broadband internet market xi

11 2.1 Wholesale Broadband Access Market Corresponding Retail Markets to the Wholesale market for broadband access Interchangeability of the wireless access with the DSL access Product delineation of the various Bitstream access markets Susceptibility for ex ante regulation of the wholesale broadband market Market analysis for presence of SMP on the wholesale broadband market AEC considerations of SMP on the wholesale broadband market Competitive safeguards Conclusions Competition on the mobile market Access and call origination on the public mobile network Mobile call termination IV. Functional separation as an exceptional remedy Introduction Experiences favouring functional separation Reasons to impose functional separation Models of functional separation Level of functional separation Products managed by the separated unit Objectives pursued Organisation of the functional separation Opinion of the German Monopolies Commission regarding a functional separation Conclusions xii