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It is not necessary that the undertaking in a dominant position also

be active in the secondary market in order for this condition to be ful-

filled. For instance, the undertaking in a dominant position may facili-

tate its entry into the secondary market by refusing to sell.

Absence of an Objective Justification.

A case-by-case analysis is

required for this condition. For instance, a refusal to sell harmful prod-

ucts that necessitate proper precautions and technical expertise when

being handled may be considered an objective justification.

Board Analysis and Findings

The Board first determined the relevant market, then considered

whether Unilever is in a dominant position in this market and finally

analyzed if refusal to sell could be considered in that case as an abuse

of dominant position.

Relevant Market

Relevant Product Market.

A relevant product market means a mar-

ket that includes all those products and/or services which are regarded

as interchangeable or substitutable by the consumer by reason of the

products’ characteristics, their prices and their intended use. Hence, in

determining the relevant product market, the interchangeability or

substitutability of the products by the consumer is taken into account.

The Board stated that there are two different ice cream markets:

the industrial ice cream market and the “scooping” ice-cream market.

The most important difference between the two markets is that indus-

trial ice cream is sold everywhere and scooping ice cream is only sold

around the place where it is produced.

Considering that ice cream branded Algida is industrial ice cream,

the Board determined the relevant product market to be the industrial

ice cream market.

Relevant Geographic Market.

A relevant geographic market

means a market which comprises the area in which the firms concerned

are involved in the supply of products or services, the conditions of

competition are sufficiently homogeneous and can be disassociated

from neighboring markets because competition conditions are perceiv-

ably different.

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NEWSLETTER 2012