Contesting the exclusivity of a premium smartphone sale granted to an incumbent operator
Expertise : Competition
A European MNO filed a complaint with the Competition Authority about the exclusive distribution of a premium brand of smartphones to another MNO in the same domestic market, contesting that this constitutes an unjustified vertical restraint.
The method employed by TERA consists of two major steps:
- To prove the existence of a specific relevant market for smartphones, using sophisticated techniques for data analysis,
- To calculate, based on accounting data, the efficiencies generated by the practice of exclusivity to show that they do not redeem the anti-competitive practice, given the length of the exclusivity period.
Benefits and results
- The Competition Authority ordered an end to the exclusivity as a precautionary measure.
- The Authority's decision was upheld by the Court of Appeal, which led to an end to the exclusivity.