Article 102 TFEU prohibits the abuse of a dominant market position within the common internal market or in a substantial part of it, in so far as it may affect trade between Member States. The interpretation of Article 102 follows the European School of Thought principle of ”competition on the merits“.
The concentration ratio in a market is an essential and important structural element for the determination of dominance. Therefore, the identification of the relevant market and the analysis of market structure becomes a key indicator for potential dominance. If a company is dominant in a market, it can abuse the resulting market power. One example of the abuse of dominance is predatory pricing. This means pricing by a dominant company which has as a principal objective the elimination or weakening of a competitor. Usually this practice includes selective price cuts, unrentable prices and a pricing policy that focuses on a specific competitor.