BIPT Council Communication of 26/12/2017 regarding the guidelines implementing margin squeeze tests

Type
Communication

Publication date
27-12-2017

Date
27-12-2017

Margin squeeze possibly constitutes a threat to competition on the electronic communications markets, especially as regards broadband Internet access and leased lines. Margin squeeze occurs when a vertically integrated operator with significant market power (SMP) at wholesale level positions his retail prices in such a manner that the margin between the costs of the wholesale input and the retail prices is insufficient to enable a competitor to offer similar retail products.

In order to address the competition issues, the CRC and BIPT prohibited the SMP operators to apply a margin squeeze in the framework of several decisions. In order to materialise the prohibition to apply a margin squeeze, as can be imposed based on a market analysis procedure, BIPT publishes this document containing its guidelines for the implementation of margin squeeze tests. These clarify the principles according to which BIPT shall examine a margin squeeze.

Earlier guidelines regarding the assessment of price squeeze laid down in its decision of 11 July 2007, shall be abolished by BIPT.

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