Following complaints brought to the Autorité de la concurrence by Douwe Egberts Master Blenders (DEMB) and the Ethical Coffee Company, Nespresso has offered a number of commitments to the authority to remove barriers to entry for the capsules of other manufacturers designed to be used with Nespresso coffee machines. The offer follows a finding by the authority that Nespresso appeared likely to have abused a dominant position by tying the purchase of its capsules to coffee machines through a number of technical, legal and commercial means.
The CRA team advising DEMB on market definition issues included Diana Jackson, Matt Tavantzis and Gerhard Dijkstra.
Imperfect Price Information, Market Power, and Tax Pass-Through
Pass-through determines how consumers respond to taxes. In a recent working paper, we investigate the impact of imperfect price information on pass-through of...