CYBER E-commerce after Coty: presentation at the ULB - Pablo Ibanez Colomo

E-commerce after Coty: my presentation at the ULB | Chillin'Competition: "The developments that have followed Coty suggest that, again, a divide has emerged between Germany and other Member States. While courts in France and the Netherlands have embraced consensus positions in relation to the judgment and its implications, German courts (and the Bundeskartellamt) are clearly less inclined to read anything in Coty that goes beyond its narrow factual circumstances.

 Ongoing disagreements relate, inter alia, to two points: one relates to the application of Coty beyond luxury products, already discussed, and the second to the treatment of other clauses having a similar object and effect – such as a ban on the use of price comparison websites. I explained that the disagreement may very well reach the Court again.

There is something fascinating about the application of competition law in online markets. I often have the impression that, for some reason, principles that have been with us for decades tend to be forgotten when things ‘get digital’. As I said, we keep ‘rediscovering mediterraneans’ these days.

I ended my lecture identifying a few guiding principles when thinking about competition law in the online world:

 Price is not the only important parameter of competition. A practice may significantly limit price competition and still be presumptively legal under Article 101(1) TFEU. This principle has been with us since the late 1970s. The Court made it explicit in Metro I and Metro II (in particular the latter). Competition in many digital and high-tech markets is not about prices anymore – think again about Apple’s immense success!

These are the best of times for intra-brand competition: when we read about online distribution, we sometimes get the impression that it is in crisis, or in need of a boost. The reality is that independent retailers have never had it so good.

Competition policy should be consistent: I struggle to see how a competition authority can simultaneously warn against the power of online platforms and at the same time develop policies subsidising these same platforms (such as a policy favouring the use of online marketplaces). Consistency, and thinking about the unintended consequences of some measures, could take us a long way." 'via Blog this'