THE AUTORITÉ DE LA CONCURRENCE REFUSED TO GRANT INTERIM MEASURES FOR PREDATORY PRICING CLAIMS IN ELECTRICITY PRICING

01/03/2021

 

French antitrust body, the Autorité de la Concurrence, started an investigation about EDF’s pricing practices after receiving a complaint from Plüm Energie. According to Plüm, EDF offered tariffs lower than its costs when bidding for the calls for tender issues by local and regional authorities and the prices charged by EDF, which it considers predatory, constitute an abuse of a dominant position.

Plüm also requested interim measures and requested that the Autorité:

• Order EDF to cover its costs in its responses to calls for tenders;
• Appoint an independent representative who would check EDF offers beforehand;
• Require EDF to prepare a a monthly report to the Autorité and the CRE on the compliance of its pricing and commercial policy to competition law, which would be subject to a written assessment from the trustee.

In order to grant interim measures, the denounced practices should be likely to violate competition law and in the event of serious and immediate damage to the general economy, the sector, the interests of consumers of the complainant. However, the information of the case does not show a serious breach. Indeed, it cannot be established that Plüm would lose certain calls for tender because of the prices charged by EDF or that Plüm is currently in a critical situation calling into question its survival in the market. Moreover, there is insufficient evidence to prove that other competitors of EDF are likely to be foreclosed from the market in the short term.

According to the elements of the case, the Autorité rejected the request for urgent interim measures but decided to continue its investigation.

(Autorité de la Concurrence – 18.02.2021)

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