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Ridyard, Derek; Baldauf, Markus --- "Microsoft v Commission: A Pricing Perspective on Non-Price Abuses" [2010] ELECD 484; in Rubini, Luca (ed), "Microsoft on Trial" (Edward Elgar Publishing, 2010)

Book Title: Microsoft on Trial

Editor(s): Rubini, Luca

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781848442443

Section: Chapter 12

Section Title: Microsoft v Commission: A Pricing Perspective on Non-Price Abuses

Author(s): Ridyard, Derek; Baldauf, Markus

Number of pages: 24

Extract:

12. Microsoft v Commission: a pricing
perspective on non-price abuses
Derek Ridyard and Markus Baldauf

1. INTRODUCTION

This chapter discusses the economics of tying in the context of the
Microsoft case. First, we consider the Microsoft tying practice in light of
a broader economic framework that examines the relationship between
tying and pricing abuses. We seek to explore the idea that it may be
instructive to analyse tying, or `non-price' abuses in general, within the
framework that is normally used for the assessment of pricing abuses
such as rebates and predation, and that there could be some insights from
taking this non-standard perspective.
Secondly, we critically appraise the reasoning of the European
Commission and Court of First Instance (CFI) when analysing the alleged
abuses conducted by Microsoft. We conclude that, despite the in-depth
analysis of both abuses relating to server software interoperability infor-
mation and media players, there remains considerable uncertainty about
the precise interpretation of the CFI's judgment. We question whether
the Microsoft judgment has done much to clarify when tying practices
by a dominant firm will be deemed to be in breach of Article 82 of the
EC Treaty, and comment on the extent to which the CFI's approach
can be consistent with a truly effects-based enforcement system such as
is proposed in the recently published Guidance on the Commission's
enforcement priorities under Article 82 EC (`the Commission's Article 82
Guidelines').1
The remainder of the text is organized ...