Development and Finance from issue 2009/2

András Bodócsi

Competition Authority Investigations into Unreasonable Prices

- Abstract -

During more than a decade of applying the Competition Act in effect, the Competition Authority carried out a large number of investigations into unreasonable pricing, although it only found unreasonable pricing policies in a tiny minority (far less than 10%) of all the procedures. One must also remember that apart from special cases, these conclusions related to cable television services where the role of intervention has gradually ceased in the past couple of years. It is therefore justified to ask whether it is necessary for the Competition Authority to continue investigating unreasonable pricing in the future? In answering this, two further questions emerge. (1) Is it necessary at all to enable the Competition Authority to investigate unreasonable prices under the Competition Act, and if yes, then (2) whether there is a way to avoid ending up with the vast majority of the investigations concluding without finding that unreasonable prices were applied, and which therefore, in this sense only, were futile.

András Bodócsi, works at the Hungarian Competition Authority

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