4. Refusals to deal

When does refusal to deal raise competition concerns?

While businesses are generally free to decide with whom they will or will not deal with, refusal to deal by a vertically integrated undertaking with substantial market power is likely to raise competition concerns when the refusal relates to an input that is indispensable to its downstream competitors. In such context, refusals to deal may harm competition in the downstream market by preventing the downstream competitors seeking the input from operating in the downstream market or acting as an effective competitive constraint.

[Source: Commission’s Guideline on the Second Conduct Rule Paras 5.16-5.17]