Exclusionary conduct in competition law: a consequence-
sensitive deontological account
Barbora Jedličková
a
and Jonathan Crowe
b
a
School of Law, University of Queensland, Brisbane, Australia;
b
Faculty of Law, Bond University, Gold Coast,
Australia
ABSTRACT
The dominant theoretical approach to the prohibition of
exclusionary conduct in competition law distinguishes exclusionary
conduct from normal competitive conduct based on their
economic outcomes. However, this approach fails to provide a
uniform and consistent test for distinguishing the two categories.
This article outlines a new account of the wrongness of
exclusionary conduct that integrates consequentialist factors within
the deontological framework of the moral duty to promote the
common good. Exclusionary conduct is wrong because it
undermines the role of markets as a salient response to an
important social coordination problem in a way that harms the
competitive process and social welfare. The prohibition arises from
the moral duty to promote the common good in combination with
evolved social and economic norms. This approach helps make
sense of the distinction between exclusionary conduct and normal
competitive behaviour. The article explores and applies this
account to the European Union approach to the prohibition of
exclusionary conduct under the legal framework provided by art
102 of the Treaty on the Functioning of the European Union.
KEYWORDS
Exclusionary conduct;
competition law; common
good; coordination
problems; welfare
economics; economic
markets
Introduction
Exclusionary conduct is behaviour by an entity with significant market power which, by
using restrictive rather than competitive means, excludes or restricts competitors—
including future competitors—from competing in the relevant market.
1
A central
problem confronting the law in this area concerns the difficulty of distinguishing exclu-
sionary conduct, on the one hand, from competitive conduct, on the other. The primary
effect of exclusionary conduct is to eliminate competitors or to restrict their role in the
market. However, many common forms of competitive conduct can have similar effects.
For example, innovative or efficient business practices can remove less efficient compe-
titors from the market, but these are clearly not forms of exclusionary conduct. The
© 2020 Informa UK Limited, trading as Taylor & Francis Group
CONTACT Barbora Jedličková b.jedlickova@law.uq.edu.au
1
Exclusionary conduct is prohibited by competition law in numerous jurisdictions, although the precise terminology
differs. For instance, art 102 of the Treaty on the Functioning of the European Union (TFEU) refers to ‘[a]ny abuse by
one or more undertakings of a dominant position within the common market or in a substantial part of it’ (emphasis
added). Section 2 of the United States (US) Sherman Act 1892, by contrast, refers to ‘monopolization’, while s 46 of the
Australian Competition and Consumer Act 2010 (Cth) uses the heading ‘[m]isuse of market power’.
JURISPRUDENCE
2021, VOL. 12, NO. 2, 123–150
https://doi.org/10.1080/20403313.2020.1844981