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2022 | OriginalPaper | Chapter

When a Price Cost Test Is Unnecessary for Assessing Pricing Abuses – The Royal Mail Case

Author : Nathan Francis

Published in: The Economics of the Postal and Delivery Sector

Publisher: Springer International Publishing

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Abstract

The chapter delves into the debate surrounding the As Efficient Competitor Test (AECT) in assessing pricing abuses, with a focus on the Royal Mail case. It discusses the general applicability and limitations of the AECT, particularly in cases where prices are not lowered. The Royal Mail case serves as a pivotal example, highlighting the complexities and nuances of applying the AECT in real-world scenarios. The chapter also explores the implications of competition authorities selectively using the AECT, potentially chilling beneficial competition. It concludes with insights on when the AECT is truly useful and when it may be inappropriate, offering valuable perspectives for competition law and policy.

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Title: When a Price Cost Test Is Unnecessary for Assessing Pricing Abuses – The Royal Mail Case
Author: Nathan Francis
Publisher: Springer International Publishing
Book: The Economics of the Postal and Delivery Sector
Print ISBN: 978-3-030-82691-8

Electronic ISBN: 978-3-030-82692-5

Copyright Year: 2022
DOI: https://doi.org/10.1007/978-3-030-82692-5_3