Summarize the following paragraphs 10 Recalibrating ‘Innovation Choice and Quality’ the ‘Not Yet as Efficient Competitor’ and the Fate of the AEC Test While using means not based on competition on the
The article discusses the use of the as-efficient-competitor (AEC) test in EU competition law. While the test is one tool amongst others for assessing whether there is an abuse of a dominant position, recent case law shows that its importance should not be overstated. The test only reflects quantitative and not qualitative parameters, and its application may not be warranted in cases where intervention is necessary to protect effective competition from not-(yet)-as-efficient competitors. The EU Courts have also recognized that competition may come from undertakings that are less efficient than the dominant firm, and the competitive constraint they exert may warrant protection under Article 102 TFEU. Other parameters of competition such as choice, quality, and innovation are also important. The presence of errors in the AEC test in a decision does not mean that the undertaking passed the test, but only that the decision did not prove that the undertaking failed the test. Passing the test does not mean that the conduct is necessarily lawful, and the crucial role of the correctness of the AEC test in some judgments betrays the formal nature of the test. The introduction of qualitative elements allows the decision-maker to take into account other considerations, including the degree to which competitive pressure is reduced by less efficient competitors.
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