European Competition Law

E-book case
Article 101 TFEU

Amazon’s 9.99$ policy :
 E-books’ market challenges
 Amazon’s leader position
 Use of the wholesale model
 Publishers’ concerns

Timely intervention of Apple :
Publishers
Apple
Raising retails price
Eliminating
meaningful
competition price
Coordination
Agency model + MFN clause
MFN CLAUSE
Switch of the wholesale model to the agency model
Raising of the retail prices
Easier access of Apple in the E-book market

Commission’s reasoning :
 Breach of article 101 TFEU ?
 Concerted practice
▪ Contact direct et indirect
▪ Exchange information
In normal condition : no coordination

Conclusion of the commission authorities and
commitments :
 Abnormal restriction of competition due to their
common strength
 Necessity to return to normal competition
▪ How? Commitments

Illicit agreements on prices : V
 Wholesale Model
Agency Model
 Obvious aim : Raising retail prices

Response of the Commission : X
 Only commitments, no sanction

Interesting :
 Anticompetitive character of the MFN clause
▪ Normally pro-competitive
 Condemnation of the agency contract system ?
▪ No if no anti-competitive clauses

Reflexion about Amazon :
 Abuse of dominant position ?

E-books trade under wholesale or agency
model

Appearance of new models
 Return of the normal competition

Future decision about Amazon ?

Summarizing video

Debate