Measuring excessive pricing as an abuse of dominance – an assessment of the criteria used in the Harmony Gold/Mittal Steel complaint

Reena das Nair

Abstract


The Competition Tribunal recently found Mittal Steel SA guilty of abusing its super-dominant position by charging excessive prices to the detriment of consumers of flat carbon steel products. This article assesses the economic tests to be used for excessive pricing in light of the case and reviews the lessons that can be learned from the evidence required for the different tests. It discusses issues related to using profitability as a test and points out problems and pitfalls in profitability measures.

 

 

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DOI: http://dx.doi.org/10.4102/sajems.v11i3.460

Submitted: 18 October 2012
Published: 19 October 2012


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South African Journal of Economic and Management Sciences    |    ISSN: 1015-8812 (PRINT)    |    ISSN: 2222-3436 (ONLINE)