The regulation of retail bundles
An increasing number of consumers now choose to take discounted bundles from their providers. For regulators, this trend makes regulatory policies regarding the replicability of bundles a relevant issue when analyzing markets and imposing obligations on dominant operators. We have identified regulatory intervention in seven counties and present the findings here.
Executive summary
In a nutshell
Ovum view
Key messages
Overview
Types of bundle
When bundling might have an anti-competitive effect
Dominance in one of the service markets as a prerequisite of possible anti-competitive behavior
Predatory pricing
Leveraging of market power
A problem of replicability
The use of margin-squeeze tests
Bundling within the EU framework
Universal Service Directive
Germany
Remedies imposed in the retail market
Ex-ante price tests
Specific bundling regulation
Greece
Remedies imposed in the retail market
Ex-ante price tests
Specific bundling regulation
Ireland
Remedies imposed in the retail market
Ex-ante price tests
Net revenue test
Specific bundling regulation
Japan
Remedies imposed in the retail market
Ex-ante price tests
Specific bundling regulation
The Netherlands
Remedies imposed in the retail market
Ex-ante price tests
Specific bundling regulation
South Korea
Remedies imposed in the retail market
Ex-ante price tests
Specific bundling regulation
Spain
Remedies imposed in the retail market
Ex-ante price tests
Specific bundling regulation
Analysis of competition
Analysis of joint economic replicability
Analysis of competition in the bundles
Analysis of bundling in the absence of competition
In a nutshell
Ovum view
Key messages
Overview
Types of bundle
When bundling might have an anti-competitive effect
Dominance in one of the service markets as a prerequisite of possible anti-competitive behavior
Predatory pricing
Leveraging of market power
A problem of replicability
The use of margin-squeeze tests
Bundling within the EU framework
Universal Service Directive
Germany
Remedies imposed in the retail market
Ex-ante price tests
Specific bundling regulation
Greece
Remedies imposed in the retail market
Ex-ante price tests
Specific bundling regulation
Ireland
Remedies imposed in the retail market
Ex-ante price tests
Net revenue test
Specific bundling regulation
Japan
Remedies imposed in the retail market
Ex-ante price tests
Specific bundling regulation
The Netherlands
Remedies imposed in the retail market
Ex-ante price tests
Specific bundling regulation
South Korea
Remedies imposed in the retail market
Ex-ante price tests
Specific bundling regulation
Spain
Remedies imposed in the retail market
Ex-ante price tests
Specific bundling regulation
Analysis of competition
Analysis of joint economic replicability
Analysis of competition in the bundles
Analysis of bundling in the absence of competition
LIST OF TABLES
Table 1: The regulatory status of retail bundling
Table 2: Price-cap regulation in Japan
Table 3: Services and SMP operators under retail regulation
Table 1: The regulatory status of retail bundling
Table 2: Price-cap regulation in Japan
Table 3: Services and SMP operators under retail regulation
LIST OF FIGURES
Figure 1: The current framework to assess whether a bundle is unreasonable
Figure 2: The CMT’s decision-making process when analyzing bundled offers
Figure 1: The current framework to assess whether a bundle is unreasonable
Figure 2: The CMT’s decision-making process when analyzing bundled offers