Akzo v Commission (1991)

Akzo based in Holland.
ECS was smaller UK firm.
Both made peroxides.
Their products could be used in both flour and
plastics market.
ECS initially engaged just in flour market, but moved
into plastics market and began to solicit Akzo’s customers.
Akzo told ECS it would take aggressive action if ECS
did not withdraw from flour market.
Akzo then offered certain of ECS’ customers in flour market
prices which were below ATC.
ECS’ business suffered.
ECJ held that price below average variable cost by
means of which dominant undertaking seeks to eliminate competitor must be
regarded as abusive.
So too price below average total cost.
Such prices can drive from market undertakings which
are perhaps as efficient as dominant undertaking, but which because of their
smaller financial resources are incapable of withstanding the competition waged
against them.