Masterarbeit, 2009
54 Seiten, Note: Distinction
INTRODUCTION
Thesis, Aims and Outline
Part I: Contextualisation of the Microsoft Judgment
CHAPTER 1 – THE THEORY AND PRACTICE OF THE CONTROVERSIAL INTERFACE BETWEEN IPRS AND COMPETITION LAW, AND THE EXERCISE OF TYING
1.1.IPRs and Competition Law in Legal Theory
1.2.IPRs and Competition Law in Legal Practice
1.3.The Exercise of Tying in Theory and Practice
Part II: The Controversial and Contestable Conclusions of the Microsoft Judgment
CHAPTER 2 – A DRAMATIC ATTENUATION OF THE EXCEPTIONAL CIRCUMSTANCES CRITERIA
2.1. The Indispensability Criterion
2.2. The Elimination of Competition Criterion
2.3. The New Product Criterion
2.4. Chapter Conclusions and Implications
CHAPTER 3 – THE APPLICATION OF A FLAWED AND INAPPROPRIATE FORM-BASED TYING TEST
3.1. The Separate Products Element
3.2. The Foreclosure Element
3.2.The Choice/Coercion Element
3.4. The Objective Justification Element
3.5. Chapter Conclusions and Implications
CONCLUSION
The primary objective of this dissertation is to critically examine the legal and factual foundations of the Court of First Instance's (CFI) conclusions in the Microsoft case. The author argues that the judgment significantly attenuates established legal standards, specifically the "exceptional circumstances" test for compulsory licensing and the traditional form-based test for tying, resulting in dangerous ramifications for innovation and legal certainty in European competition law.
1.3 The Exercise of Tying in Theory and Practice
Tying two separate products together and offering them as a package is a common commercial practice amongst undertakings, which can have many pro-competitive effects such as lowering costs, improving product quality and spurring pricing competition, consequently passing on economic efficiency gains to consumers. However, it becomes abusive under Article 82(d) when a dominant supplier exploits its market power to effectively force consumers to purchase the tied product by removing the non-tied versions from the market, thereby harming both consumers by precluding choice and competitors since they are effectively excluded. When abusive tying is coupled with IPRs “the tie creates a competitive advantage for the IPR owner, compelling competitors to have access to both markets if they are to compete on equal terms with the IPRs owner.” Accordingly tying can also be inherently anti-competitive, which necessitates a test to determine whether a specific tie is abusive. In European legal history a form-based tying test has been applied, consisting of five elements that must be established for the finding of an abusive tie: the ‘tying’ and ‘tied’ products are separate; the undertaking is dominant; consumers are deprived of choice by being coerced into attaining only the package version; the tying has a foreclosure effect on competition in the market for the tied product; and there is no objective justification for the tie. While competition law authorities have adopted a more effects-based reasoning in other areas, Article 82 remains predominantly form-based in spite of aspirations towards change. Consequently the analytical framework of the EU institutions follows an inherently ordoliberal approach in relation to tying, which emphasises the impact on the market structure and “heavily relies on structural presumptions and a form-based analysis rather than an assessment of the effects of the conduct on consumer welfare.”
CHAPTER 1 – THE THEORY AND PRACTICE OF THE CONTROVERSIAL INTERFACE BETWEEN IPRS AND COMPETITION LAW, AND THE EXERCISE OF TYING: This chapter contextualizes the conflict between IPRs and competition law and explains the traditional form-based tying test used in European jurisprudence.
CHAPTER 2 – A DRAMATIC ATTENUATION OF THE EXCEPTIONAL CIRCUMSTANCES CRITERIA: This chapter analyzes how the CFI lowered the standards for compulsory licensing and arguably undermined the legal protection of IPRs through the Microsoft ruling.
CHAPTER 3 – THE APPLICATION OF A FLAWED AND INAPPROPRIATE FORM-BASED TYING TEST: This chapter explores why the traditional tying test was technically flawed and unsuitable for the unique high-tech market characteristics inherent in the Microsoft dispute.
Microsoft case, Competition law, Article 82 EC, Intellectual Property Rights, IPRs, Compulsory licensing, Exceptional circumstances test, Tying, Windows Media Player, Innovation, High-tech markets, Consumer welfare, Interoperability, Foreclosure, Form-based analysis
The dissertation analyzes the legal and factual validity of the European Court of First Instance's ruling in the Microsoft case, focusing on the negative impacts of the judgment on innovation and the legal balance between competition law and intellectual property rights.
The work examines the interface between IPRs and competition law, the criteria for compulsory licensing, the applicability of traditional tying tests to high-tech industries, and the shifting focus of EU authorities from consumer protection to competitor protection.
The research questions whether the CFI's conclusions in the Microsoft case are legally and factually contestable and if the judgment's departure from established case law will lead to dangerous ramifications for innovation and economic progress in Europe.
The author performs a critical legal analysis of the Microsoft judgment, comparing it to established precedent (such as the Magill and Bronner cases) and investigating how the Commission and the CFI deviated from traditional standards.
The main body evaluates the criteria for compulsory licensing (indispensability, elimination of competition, new product/technical development), the flaws in the tying test (separate products, foreclosure, choice/coercion, objective justification), and the implications for high-tech market regulation.
Keywords include the Microsoft case, Article 82 EC, IPRs, compulsory licensing, tying, interoperability, and high-tech market innovation.
The author characterizes it as having been "dramatically attenuated," arguing that the threshold for indispensability was lowered to the point where even convenient alternatives are disregarded.
The author contends that the strict "new product" criterion was de facto replaced by a weaker "technical development" criterion, effectively allowing competitors to demand access to a rival's intellectual property without proving a need for a truly new product.
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