scholarly journals Exploitative Abuse of a Dominant Position in the Bulgarian Energy Markets

2017 ◽  
Vol 10 (16) ◽  
pp. 33-55
Author(s):  
Miroslava Marinova ◽  
Kremena Yaneva-Ivanova
Keyword(s):  
Energy Markets ◽  
Regulatory Control ◽  
Competition Authority ◽  
Water Regulation ◽  
Pricing Policy ◽  
Dominant Position ◽  
Legal Standards ◽  
General Terms ◽  
Contractual Relationships ◽  
The Eu

In the last few years the behavior of undertakings operating in the regulated utility markets, such as energy, water and communications, has been in the focus of the Bulgarian Competition Authority (hereinafter, BCA). Typically, these companies are dominant due to their exclusive licenses to operate in a certain territory and thus the contents of their contractual relationships with customers are often defined in general terms and conditions (hereinafter, GTCs) adopted or approved by the respective sector regulator. Most or all aspects of their pricing policy is also subject to sector regulation. By analysing critically two landmark decisions of the BCA concerning abuses of companies active in the energy markets, this paper raises the following questions: (1) to what extent the BCA is competent to intervene and sanction those undertakings for conduct which is subject of regulatory control by the sector regulator (the Energy and Water Regulation Commission (hereinafter, EWRC)) and (2) whether in its enforcement practice against those undertakings, the BCA is following the legal standards adopted by the EU courts.

A refusal to grant access to a grid within the provision of crude oil transfer services as an example of a prohibited abuse of a dominant position in the EU and Polish competition law

2018 ◽  
Vol 5 (2) ◽  
pp. 199 ◽  
Author(s):  
Wojciech Paweł SZYDŁO
Keyword(s):  
Crude Oil ◽  
Competition Law ◽  
Eu Law ◽  
The European Union ◽  
Dominant Position ◽  
Oil Companies ◽  
Effective Competition ◽  
Oil Pipelines ◽  
Transfer Services ◽  
The Eu

Aim: The paper discusses cases in which a refusal by an energy enterprise to connect other enterprises to the network is treated as a prohibited abuse of the enterprise's dominant position and, equally, will represent behavior prohibited by art. 12 of the Treaty on the Functioning of the European Union and by art. 9 par. 2 item 2 of the Competition and Consumer Protection Law as well as legal consequences of such refusal. It is important to pinpoint such cases since the EU sectoral regulation does not provide for obligating any undertakings which manage and operate oil pipelines to enter into contracts with other undertakings such as contracts on connecting into their network or contracts on providing crude oil transfer services. Conditions for accessing oil pipelines and selling their transfer capacities are determined by the owners of the networks: private oil companies in the countries across which the pipelines are routed. These conditions are not governed by the EU law.  Furthermore, the very obligation of connecting other entities to own network by energy undertakings operating in the oil transfer sector in Poland will only arise from generally applicable provisions of the Polish competition law.  Design / Research methods: The purpose of the paper has been reached by conducting a doctrinal analysis of relevant provisions of Polish and EU law and an analysis of guidelines issued by the EU governing bodies. Furthermore, the research included the functional analysis method which analyses how law works in practice. Conclusions / findings: The deliberations show that a refusal to access the network will be a manifestation of a prohibited abuse of a dominant position and will be a prohibited action always when the dominant's action is harmful in terms of the allocation effectiveness. It will be particularly harmful when delivery of goods or services objectively required for effective competition on a lower level market, a discriminatory refusal which leads to elimination of an effective competition on the consequent market, a refusal leading to unfair treatment of consumers and an unjustified refusal. Originality / value of the article: The paper discusses the prerequisites which trigger the obligation to connect entities to own network by energy undertakings operating in the oil transfer sector. The obligation has a material impact on the operations of the oil transmitting undertakings, in particular on those who dominate the market. The regulatory bodies in the competition sector may classify a refusal of access to own network by other enterprises as a prohibited abuse of the dominant position, exposing such undertakings to financial consequences.Implications of the research: The research results presented in the paper may be used in decisions issued by the President of the OCCP and in judgement of Polish civil courts and EU courts. This may cause a significant change in the approach to classifying prohibited practices to prohibited behavior which represent abuse of the dominant position. The deliberations may also prompt the Polish and EU legislator to continue works on the legislation.

scholarly journals Differences between the European Union and United States of America in Drug Regulatory Affairs Affect Global Patient Safety Standards and Public Health Awareness: The Case of Deferasirox and Other Iron Chelating Drugs

Medicines ◽  
2021 ◽  
Vol 8 (7) ◽  
pp. 36
Author(s):  
George J. Kontoghiorghes
Keyword(s):  
Patient Safety ◽  
Generic Drugs ◽  
Benefit Assessment ◽  
Regulatory Control ◽  
Pharmaceutical Companies ◽  
The European Union ◽  
Regulatory Policies ◽  
Regulatory Affairs ◽  
Risk Benefit Assessment ◽  
The Eu

Regulatory policies on drugs have a major impact on patient safety and survival. Some pharmaceutical companies employ all possible methods to achieve maximum sales in relation to the monopoly of their patented drugs, leading sometimes to irregularities and illegal activities. Misinformation on the orphan drug deferasirox has reached the stage of criminal investigations and fines exceeding USD 100 million. Additional lawsuits of USD 3.5 billion for damages and civil fines were also filed by the FBI of the USA involving deferasirox and mycophenolic acid, which were later settled with an additional fine of USD 390 million. Furthermore, a USD 345 million fine was also settled for bribes and other illegal overseas operations including an EU country. However, no similar fines for illegal practises or regulatory control violations have been issued in the EU. Misconceptions and a lack of clear guidelines for the use of deferasirox in comparison to deferiprone and deferoxamine appear to reduce the effective treatment prospects and to increase the toxicity risks for thalassaemia and other iron loaded patients. Similar issues have been raised for the activities of other pharmaceutical companies promoting the use of new patented versus generic drugs. Treatments for different categories of patients using new patented drugs are mostly market driven with no clear safeguards or guidelines for risk/benefit assessment indications or for individualised effective and safe optimum therapies. There is a need for the establishment of an international organisation, which can monitor and assess the risk/benefit assessment and marketing of drugs in the EU and globally for the benefit of patients. The pivotal role of the regulatory drug authorities and the prescribing physicians for identifying individualised optimum therapies is essential for improving the survival and safety of millions of patients worldwide.

Excessive Pharmaceutical Pricing as an Abuse of Dominant Position – The Case of CD Pharma (Denmark)

2021 ◽  
Author(s):  
Behrang Kianzad
Keyword(s):  
Public Procurement ◽  
Economic Value ◽  
Pharmaceutical Market ◽  
Market Definition ◽  
Competition Authority ◽  
The European Union ◽  
Pharmaceutical Pricing ◽  
Relevant Market ◽  
Dominant Position ◽  
Abuse Of Dominant Position

Abstract On 31 January 2018, the Danish Competition and Consumer Authority adopted a decision1 finding the Swedish company generic distributor CD Pharma in breach of Art. 102(a) Treaty on the Functioning of the European Union (TFEU) by abusing its dominant position and having imposed excessive and unfair prices for the drug Syntocinon. The company increased the price of the drug by 2000% in the period April-October 2014 in the Danish pharmaceutical market. CD Pharma appealed to the Danish Competition Appeals Board,2 which on 29 November 2018 upheld the decision by the Authority. On subsequent appeal to the Danish Maritime and Commercial Court,3 the judgment by the previous court was upheld in a 3-2 decision on 2 March 2020, thus finding CD Pharma liable for infringement of Danish competition law as well as Art. 102(a) TFEU. The decision is final and not subject to further appeal. The case raises outstanding legal-economic issues regarding excessive pricing such as relevant market definition in pharmaceutical cases, the length of abuse, competitive price benchmarks, definition of economic value and the matter of dominance in public procurement and tenders. The case is rather unusual in that the alleged abusive period amounted to a six-month period, CD Pharma was the ‘losing’ party in the bidding process for the supply of the medicine in question, and CD Pharma subsequently had reduced prices through negotiations with the Danish central medicine procurer, Amgros. Similar to the Aspen Pharma decision4 by the Italian Competition Authority, where the Italian Medicine Agency (AIFA) reported the case to the Competition Authority, it was the Danish medicine procurer Amgros who had notified the Danish Competition and Consumer Authority about allegedly abusive practices. This subsequently led to an investigation and the adoption of the Decision. Following an introduction describing the Danish pharmaceutical market and specifics of the case, section two of this contribution details the proceedings at Danish Competition Authority. Section three depicts the proceedings at Competition Appeals Tribunal, and section four deals with the proceedings at the Maritime and Commercial Court. Section five concludes.

scholarly journals Competition Law and State Aid for Failing Banks in the EU and its Specific Implications for CEE Member States

2016 ◽  
Vol 9 (14) ◽  
pp. 145-157
Author(s):  
Virág Blazsek
Keyword(s):  
European Union ◽  
State Aid ◽  
Common Market ◽  
Competition Authority ◽  
The European Union ◽  
Member States ◽  
Positive Effects ◽  
The Stability ◽  
Bank Bailouts ◽  
The Eu

The bank bailouts following the global financial crisis of 2008 have been subject to prior approval of the European Commission (EC), the competition authority of the European Union. The EC was reluctant to reject rescue efforts directed at failing banks and so it consistently approved all such requests submitted by Member States. Out of the top twenty European banks, the EC authorized State aid to at least twelve entities. In this context, the paper outlines the gradually changing interpretation of EU State aid rules, the “temporary and extraordinary rules” introduced starting from late 2008, and the extension of the “no-State aid” category. The above shifts show that the EC itself deflected from relevant EU laws in order to systemically rescue important banks in Europe and restore their financial stability. The paper argues that bank bailouts and bank rescue packages by the State have led to different effects on market structures and consumer welfare in the Eurozone and non-Eurozone areas, mostly the Eastern segments of the European Union. As such, it is argued that they are inconsistent with the European common market. Although the EC tried to minimize the distortion of competition created as a result of the aforementioned case law primarily through the application of the principle of exceptionality and different compensation measures, these efforts have been at least partially unsuccessful. Massive State aid packages, the preferential treatment of the largest, or systemically important, banks through EU State aid mechanisms – almost none of which are Central and Eastern European (CEE) – may have led to the distortion of competition on the common market. That is so mainly because of the prioritization of the stability of the financial sector and the Euro. The paper argues that State aid for failing banks may have had important positive effects in the short run, such as the promotion of the stability of the banking system and the Euro. In the longrun however, it has contributed to the unprecedented sovereign indebtedness in Europe, and contributed to an increased economic and political instability of the EU, particularly in its most vulnerable CEE segment.

scholarly journals A Comparative Analysis of the Collective Dominance Definition in Ukrainian and European Law – the Electricity Market Case

2016 ◽  
Vol 9 (14) ◽  
pp. 125-144
Author(s):  
Ksenia Smyrnova
Keyword(s):  
Electricity Market ◽  
Mining Industry ◽  
Policy Formation ◽  
State Regulation ◽  
Comparative Approach ◽  
Pricing Policy ◽  
Association Agreement ◽  
Energy Community ◽  
The Eu ◽  
Collective Dominance

This paper follows a comparative approach to the analysis of collective dominance doctrine and practice in the EU and the enforcement practice in Ukraine. The aim of this paper is to assess the compliance of the Ukrainian competition authority’s (AMCU) analysis of the national electricity market with EU law enforcement practice. The latter arises from Ukraine’s wider duty to fulfil its international law obligation to comply with EU competition rules, based on Article 18 of the Treaty establishing the Energy Community also taking into account the interpretative criteria developed in EU case law (according to Article 94 of the Association Agreement between Ukraine and the EU). Article 255 of the Association Agreement, which clearly provides for the use of the principle of transparency, non-discrimination and neutrality when complying with the procedures of fairness, justice and the right of defence, also illustrates the necessity of carrying out research in this field. The paper examines notions such as: the dominance doctrine, market power definition, economic strength and collective dominance in the EU enforcement practice. Special attention is placed on enforcement practice in the electricity market. Since the scrutinised market inquiry constitutes the first investigation into the Ukrainian electricity market, there is no national practice on this issue yet. For this reason, the analysis follows a wide comparative approach towards the principles of collective dominance in the electricity market in Ukraine. The paper concludes that the AMCU’s approach to the regulation of the electricity market in Ukraine confirms the necessity to reform the system of state regulation in the wholesale electricity market and in the market of services for electricity transmission. In order to develop competition in the electricity market, it is also necessary to change the system for tariff and pricing policy formation on the part of the National Energy and Utilities Regulatory Commission of Ukraine and the Ministry of Energy and Coal-Mining Industry of Ukraine. Stressed is also the necessity to follow the approach and criteria of EU competition law with regard to the determination of market dominance. This requirement is stipulated by Ukraine’s international legal obligations arising from Articles 18 and 94 of the Treaty establishing the Energy Community and Article 255 of the Association Agreement between the EU and Ukraine.

scholarly journals Wine Aging Technology: Fundamental Role of Wood Barrels

Foods ◽  
2020 ◽  
Vol 9 (9) ◽  
pp. 1160
Author(s):  
Maria Carpena ◽  
Antia G. Pereira ◽  
Miguel A. Prieto ◽  
Jesus Simal-Gandara
Keyword(s):  
Aging Process ◽  
Storage Time ◽  
Economic Implications ◽  
Oxidative Aging ◽  
General Terms ◽  
Two Phases ◽  
Light Bottle ◽  
Wine Aging ◽  
The Eu

The aging of wines is a process used to preserve wine but also to enhance its properties. It is a process of great interest, mainly because of the additional properties it adds to wines and because of its economic implications. Historically, barrels have been employed for centuries for preserving and aging wine due to their resistance and relative impermeability. In general terms, the wine aging process can be divided into two phases: oxidative and reductive aging. Oxidative aging traditionally takes place in barrels while reductive phase occurs in the bottle. During both processes, oxygen plays a fundamental role as well as other factors, for instance: temperature, light, bottle position, microbial growth or storage time. Likewise, during the aging process, a series of chemical reactions take place influencing the composition and organoleptic profile of wine. At this point, oxidative aging in barrels is a fundamental step. Barrels are directly involved in the produced changes on wine’s composition due to the transference of oxygen and phenolic and aromatic compounds from wood to wine. This way, barrels act as an active vessel capable of releasing compounds that affect and improve wine’s characteristics. Regarding, the importance of barrels during aging process, some attention must be given to the species most used in cooperage. These species are conventionally oak species, either French or American. However, other non-conventional species are currently being studied as possible wood sources for the production of wines, such as chestnut robinia or other oak species. In the last decades, new approaches have been developed for barrel aging to find new alternatives more suitable, affordable and feasible to sanitize the process, such as other materials different from wood or the use of wood chips, which is regulated since 2006 by the EU. However, even though some of them have shown promising data, barrels are currently the most used technology for the oxidative stage of table wines aging.

scholarly journals Evaluating Customer Satisfaction in Energy Markets Using a Multicriteria Method: The Case of Electricity Market in Greece

2020 ◽  
Vol 12 (9) ◽  
pp. 3862 ◽  
Author(s):  
Dimitrios Drosos ◽  
Grigorios L. Kyriakopoulos ◽  
Garyfallos Arabatzis ◽  
Nikolaos Tsotsolas
Keyword(s):  
Customer Service ◽  
Electricity Market ◽  
Electric Energy ◽  
Energy Markets ◽  
Pricing Policy ◽  
Global Satisfaction ◽  
Satisfaction Index ◽  
Multicriteria Method ◽  
Satisfaction Analysis

During the last decade, the demand for electricity has increased significantly, both for companies and consumers. Therefore, in every country, there are companies developing and functioning to provide various forms of electric energy. The quality of the services that they provide has been of major concern for these companies for the last few years. The objective of this study is to examine residential customers’ satisfaction of electricity providers in Greece regarding various factors, such as the products, services, customer service, and the pricing policy. The present research was conducted with the use of a specially developed website questionnaire; 689 questionnaires were collected from January to June, 2019. The results were analyzed with the multicriteria satisfaction analysis (MUSA) method, which is considered as an aggregation–disaggregation approach developed on the qualitative analysis regression. The results of the study showed that the residential customers were quite satisfied. More specifically, the average global satisfaction index of the residential customers was about 52.15%. Using the results of this study, electricity providers will have the chance to frame their future products and services so as to keep their industrial customers satisfied. This empirical study may serve as a reference for other electricity providers who desire to carry out similar studies in the future.

Legal and Regulatory Framework of European Energy Markets

2020 ◽  
Author(s):  
Cansu D. Burkhalter
Keyword(s):  
Internal Energy ◽  
Competition Law ◽  
Energy Markets ◽  
Regulatory Framework ◽  
Energy Market ◽  
Dual Structure ◽  
Fully Integrated ◽  
Regulatory Frameworks ◽  
Integrated Structures ◽  
The Eu

Since the beginning of the 1990s, Europe has been struggling to establish a competitive as well as a fully integrated internal energy market. Until the early 1990s, the European energy markets consisted of national monopolies possessing vertically integrated structures. They were also still nationally segregated. Since, the EU has made the decision to open European energy markets to competition and subsequently establish an internal energy market. The European energy markets are currently controlled by a dual structure consisting of two different regulatory frameworks: competition law and sector-specific regulations. The primary goal of these legal instruments is the establishment of an internal energy market. This book aims at analysing the development of the European energy markets and policies from the perspective of competition law as well as sector-specific regulations and, hence, identifying the problems regarding the introduction of competition into the energy markets.

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