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Contesting the exclusivity of a premium smartphone sale granted to an incumbent operator


Expertise : Competition

Business challenge

  • 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.

Approach

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.