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The role of economic analysis in predatory pricing cases. Effects of the latest CFI ruling on the France Télécom case

100%
Bara Z.
Kozgazdasagi Szemle (Economic Review)
|
2007
|
vol. 54
|
issue 9
800-820
EN
In a judgement issued in January 2007, the European Court of First Instance (CFI) approved one of the Commission's Decisions that had omitted in-depth economic analysis in connection with the unlawfulness of predatory pricing, had not been based on inquiry into the expected market effects of the allegedly illegal behaviour, and had omitted to apply the so-called recoupment test (i.e. examine whether the dominant firm could reasonably count on the return of its former losses by raising its prices later). What can be expected, after that judgement, in the future role of economic analysis in anti-trust cases? Why should national authorities and courts or even the Commission itself take the much higher risks and greater effort of applying economic analysis to substantiate their cases if they can prove them much more easily on formally based legal grounds? Similarly, can future competition cases be expected to move back from effect-based approaches to legally based ones?
2

Patent i jego znaczenie dla gospodarki

88%
Kabat-Rudnicka D.
Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie
|
2012
|
issue 897
121-134
EN
The aim of the article is to show that patent – the granting of a temporary monopolistic position, which is detrimental to the economic activity, since any legally sanctioned monopoly is an obstacle to economic development – in the long term may in fact have a positive impact on economic development. Growth is possible today only when the economy is strong and can succeed in the presence of global competition, i.e. the economy based on knowledge and innovation. The European Union, in principle, uses two instruments to increase innovation: competition policy and industrial policy. However, these policies often pursue divergent goals, as competition policy aims at an undistorted form of competition, whereas industrial policy distorts competition, through the support granted to selected entities and economic sectors. Another, equally important instrument, which also seeks to promote innovation and thus the competitiveness of the economy is patent, the granting of a temporary monopoly (a legally sanctioned monopolistic position). Despite all of its shortcomings, patent is important, since it fosters innovation and enables the spread of technology. On the other hand, the single European patent, if adopted, will increase legal certainty and facilitate access to goods and technologies by lowering costs.
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