Excessive prices

One form that abuse of dominance can take is excessive pricing. A price which is excessive has no reasonable relation to the economic value of the product supplied.

The proof for the existence of excessive pricing requires the need to determine whether the difference between the costs actually incurred and the price actually charged is excessive; and if the answer is yes, whether a price has been imposed which is either unfair in itself or when compared to competing products.

EE&MC applies different methods to identify excessive pricing depending on time constraints and data availability:
 

  • Price-cost margin analysis,
  • Price comparisons across markets or competitors,
  • Geographic price comparisons, and
  • Comparisons over time.