| Abstract: | This paper explores the issue of margin squeeze in the telecommunicationssector. It observes that margin squeeze abuses can be addressedthrough ex ante and/or ex post intervention. As far as ex anteintervention is concerned, this paper reviews the various regulatorystrategies that can be used to address margin squeeze beforeconcluding that such conduct has been generally prevented throughprice controls. It then evaluates how wholesale and retail pricecontrol mechanisms can affect the ability and/or incentivesof vertically integrated operators to engage in margin squeeze.As far as ex post intervention is concerned, this paper discussedthe way in which margin squeeze has been addressed under nationaland EC competition law. It then explores several unresolvedissues that emerge from the decisional practice of the competitionauthorities and the case law of the courts. Finally, the paperexplores the interface between competition law and sector-specificregulation and in particular the jurisdictional and substantiveconflicts that it can lead to in the area of margin squeeze. |
