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Exploitative abuse:
This type occurs whereby a dominant firm using dominant position to exploit consumers without losing them through conduct like price increase and production limitation. There is no legal definition of ‘exploitative abuse’ under Article 102 but it can be taken as ‘any conduct that directly causes harm to the customers of the dominant undertaking’. Without barriers to entry, the market is likely to be self-corrected by competition because monopoly profits will attract new competitors to enter the market. However, the Guidance does suggest that the Commission will intervene where the conduct is directly exploitative of consumers (for example, charging excessively high prices).
Excessive price:
Price set significantly above the competitive level. Article 102 explicitly bans unfair pricing which has been understood as to cover the excessive pricing. The charged price must be excessive and unfair to be abusive. The test used was stated in the United Brands case that whether the charged price has no reasonable relation to the economic value of the product supplied and exceeds what the dominant undertaking would have obtained in a normal and sufficiently competitive market.