Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 2003:25: When Should an Incumbent Be Obliged to Share its Infrastructure with an Entrant Under the General Competition Rules?

Mats Bergman ()
Additional contact information
Mats Bergman: Göteborg University, Postal: Department of Economics, Göteborg University, P.O. Box 640, SE-405 30 Göteborg, Sweden

Abstract: According to the essential facilities doctrine, competition law requires an infrastructural monopoly to provide access. Under the ”Bronner criterion”, proposed by the EC Court, the doctrine is only applicable when an infrastructural duopoly is non-viable. This paper uses a simple model to illustrate that, from a welfare point-of-view, the Bronner criterion may provide too little monopoly protection for the incumbent in high-risk new markets, while requiring too much investments from the entrant in moderately mature markets.

Keywords: Infrastructure; access regulation; competition law; antitrust; Bronner

JEL-codes: L43; L51

21 pages, September 15, 2003

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