buse of a dominant position when it is excessively high with respect to the cost incurred by the undertaking in the dominant position. A very low price can also be an abuse of a dominant position when the low price is "predatory", i.e. when it is intended to knock competitors out of the market. a. Excessive PriceClearly, it is not easy to determine when a price is excessive, and this kind of determination will depend from the factual circumstances of the case. One good example of this kind of abuse can be found-in the decision by the Commission in the General Motors Continental matter . Under Belgian law, General Motors was required to issue a certificate of conformity before a new General Motors vehicle could be registered in Belgium. This requirement applied both to General Motors cars that had been bought in Belgium and in other countries. General Motors had therefore a situation of virtual monopoly over the issuance of the certificates. The commission held that the high fee required by General Motors for issuing the certificate was an abuse of a dominant position, as there was an "extraordinary disparity" between the actual costs incurred and the prices that were charged. b. Predatory PricingAn excessively low price can also amount to an abuse of a dominant position if its purpose is to oust from the market a competitor who does not have the financial resources to withstand for a long period of time sales that are below cost. 2. Refusal to DealThe refusal to deal by an enterprise with a dominant position has been viewed negatively within the Competition act so implying that for example: a producer of a raw material with dominant position can not refuse to supply an important manufacturer of a derivative product if this refusal could eliminate all competition from such manufacturer of the derivative product in question. 3. Collective Dominant PositioningIn some circumstances two or more economically and legally independent firms migh...
