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Excessive Pricing Enforcement in Dynamic Sectors: Should You Stop Reading Now?

Excessive pricing has long been a disputed topic particularly based on the ambiguity when a price could be considered as excessive. It is even more challenging to determine whether excessive pricing constitutes a form of abuse of dominance when it comes to dynamic markets. This is mainly due to the fact that there are significant complications that stem from the impracticality of applying the legal tests to real-world situations. Throughout this article, we argued that the legal tests applied in excessive pricing cases are insufficient and therefore implementation of such tests in dynamic sectors is even more risky. Accordingly, as it is highly difficult in dynamic sectors to determine whether an undertaking is dominant and the prices are excessive, it can be concluded that undertakings should be liberal to determine a pricing strategy that enables them to obtain sufficient returns on their investments.