Market power definition

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Key IP considerations in R&D agreements—checklist

Key IP considerations in R&D agreements—checklist Using this Checklist This Checklist focuses on the IP aspects of R&D agreements and identifies the key terms typically included in an R&D agreement. This document can be used as a checklist of issues to consider when drafting, reviewing or negotiating such agreements. Key competition law considerations are also considered. However, an individual assessment will need to be conducted as to whether an agreement’s IP provisions are compatible with competition law, particularly the prohibitions against anti-competitive agreements under Article 101(1) of the Treaty on the Functioning of the European Union (TFEU) and Chapter I of the Competition Act 1998 (CA 1998). On 1 June 2023, the European Commission adopted the EU Research & Developments Block Exemption, Commission Regulation (EU) 2023/1066 (EU R&D BER) and the accompanying Horizontal Guidelines. The EU R&D BER entered into force on 1 July 2023 and will expire on 30 June 2035. On 5 December 2022, the UK government laid before Parliament the Competition Act 1998 (Research and Development...

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Market definition and analysis in EU and UK competition law

IntroductionMarket definition is the traditional starting point for most analysis under competition law. It provides an objective conceptual framework for systematically identifying competitors (or potential competitors) that may constrain a company’s behaviour. The Commission refers to these as ‘effective and immediate competitive constraints’.Competition authorities use market definition in several contexts, especially for merger control, the assessment of anti-competitive agreements, and abuse of dominance cases.•Merger control—competition authorities assess the effects of the proposed merger. To that end, the Commission and the CMA identify the markets in which the merging parties are active, and the competitive constraint that the merged entity would face in such markets•Anti-competitive agreements—when competition authorities suspect an anti-competitive agreement between suppliers or purchasers, they usually assess whether the agreement had anti-competitive effects. This requires defining the markets that may have been affected by the agreement•Abuse of dominance cases—competition authorities assess whether the investigated company has significant market power and has used its position to distort competition. To do so, they usually define the markets in which the investigated...

The legal development of margin squeeze

The legal development of margin squeeze Margin squeeze is an example of ‘exclusionary' conduct that targets competitors with the aim of eliminating or weakening their position as viable rivals—either by forcing them out of the market or by making entry unattractive in the first instance. In particular, where a vertically-integrated undertaking holds a dominant position in an upstream market for the supply of an essential input and supplies this input to wholesale customers who are also retail competitors, it may have the ability and incentive to exclude these competitors from the downstream (retail) market. In effect, the dominant undertaking ‘squeezes’ the downstream competitors’ margins (ie the gap between the cost of its required inputs and the price it can achieve on the downstream market) by charging a high wholesale price, a low retail price, or a combination of both. The resulting ‘spread’ between the price at which the dominant undertaking sells the good/service on the retail market and the price at which it sells the upstream input to...

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Message from CEO on introduction of competition law compliance policy

Message from CEO on introduction of competition law compliance policy Date: [insert date] From: [Insert name and job title] Competing fairly benefits both businesses and consumers. Competition shows companies where they need to improve and encourages organisations to strive for greater efficiency, become more innovative, more productive, and ultimately be better businesses. Competition law is designed to protect businesses and consumers from anti-competitive behaviour, and safeguard effective competition. All businesses must comply with competition law and there can be serious consequences for businesses and individuals, including directors, for non-compliance, including heavy fines, prison sentences, director disqualifications and reputational damage. 1 What is competition law compliance? Competition law is designed to protect businesses and consumers from anti-competitive behaviour, and safeguard effective competition in the markets in which they operate. All businesses must comply with competition law and there can be serious consequences for businesses and individuals for non-compliance, including heavy fines, prison sentences, director disqualifications and reputational damage. 2 How does this affect us? Competition law may become...

Competition law compliance—post-training assessment answers

Competition law compliance—post-training assessment answers Question Correct answer 1. Competition law protects business and consumers from anti-competitive behaviour, and safeguards effective competition True 2. What are the consequences of breaching competition law? Heavy fines, prison sentences, director disqualifications, and reputational damage. 3. What are the three main contexts in which competition law may become an issue for commercial organisations? Cartels, abuse of dominant position and other anti-competitive agreements 4. Would an organisation that has substantial market power over a period of time be classified as being in a dominant

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Competition weekly highlights—1 May 2025

This week's edition of Competition weekly highlights includes, from a UK perspective: (1) the CMA’s decision to launch a consultation on proposed changes to the CMA’s guidance on applications for leniency and no-action in cartel cases, (2) publication by the CMA of guidance on how mergers are investigated, and (3) publication of guidance by the CMA on how it will deliver the 4Ps to support growth under the new digital markets competition regime. This week's highlights also includes, from an EU perspective: (1) the Commission’s decision to fine Apple €500m for breaching its anti-steering obligation under the DMA, (2) the Commission’s decision to close its investigation into Apple's user choice obligations under the DMA, (3) the Commission’s decision to issue its preliminary findings in relation to its non-compliance investigation into whether Apple’s new contractual requirements for alternative app distribution breach the DMA, (4) the Commission’s decision to fine Meta €200m for breaching the DMA obligation to give consumers the choice of a service that uses less of their personal data,...

UK Competition law—daily round-up (30/04/2025)

A round-up of UK competition law developments, including the CMA publishes guidance on how it will deliver the 4Ps to support growth under the new digital markets competition regime.