The European Commission has adopted new guidelines on how it will apply EU rules that prohibit dominant companies from using practices that shut out rivals.
The guidance covers “exclusionary abuses of dominance” under Article 102 of the Treaty on the Functioning of the European Union (TFEU), a key part of EU competition law that bans the abuse of a dominant market position, the Commission announced in a release on Thursday night.
Examples of conduct covered include predatory pricing, margin squeeze, exclusive dealing and refusal to supply.
The Commission said the guidelines are based on case law from the EU courts and the authority’s own enforcement experience, and were finalised after a three-year consultation process with stakeholders.
Teresa Ribera, the Commission’s executive vice-president for clean, just and competitive transition, stated that the guidelines would provide “clarity and predictability on the limits of the law for companies operating in Europe”, adding that the Commission would continue enforcing the rules to ensure “competition on the merits.”
What the guidelines cover
The Commission said the guidelines set out how companies can assess whether they hold a dominant position in a market, including in “ecosystems” and “after-markets” — such as products and services linked to a main purchase.
They also explain how the Commission will assess whether a company’s conduct goes beyond normal competition and has exclusionary effects, and set out a framework for analysing specific types of behaviour by dominant firms, the organisation said.
Companies may also seek to justify conduct by arguing it is objectively necessary or that it creates efficiencies that outweigh any negative effects and ultimately benefit consumers.
As part of the change, the Commission said it is withdrawing its 2008 guidance on enforcement priorities for exclusionary abuses, which had been amended in 2023.
