Competition Law in Tourism

TRAVEL AGENTS VERSUS AIRLINES IN THE MALTESE COMPETITION LAW 533 (2) Without prejudice to the generality of the provisions of sub-article (1), one or more undertakings shall be deemed to abuse of a dominant position, where it or they – (a) directly or indirectly impose an excessive or unfair purchase or selling price or other unfair trading conditions; (b) limit production, markets or technical development to the prejudice of consumers; (c) apply dissimilar conditions, including price discrimination to equivalent transactions with different trading parties, thereby placing any or some of the trading parties at a competitive disadvantage; (d) make the conclusion of contracts subject to the acceptance by the other party of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts. (3) For the purpose of determining whether the purchase or selling price is excessive or unfair, all relevant factors shall be considered and in particular: (a) the price charged for the product (in absolute terms); (b) the percentage increase or increases in the price over the long and short term; (c) the relationship between the price and the cost of the product; (d) the period of time for which the price has been charged; (e) the economic value of the product; (f ) the importance of the product to consumers; (g) the economic or other risks associated with bringing the product to the market; (h) the investment of capital and other resources necessary to bring the product to the market; (i) the expected, probable or possible changes in the market for the product; and (j) the price charged for the product by other undertakings in Malta and by the same or other undertakings in other analogous markets. (4) Article 102 of the Treaty on the Functioning of the European Union (TFEU) shall also apply where any abuse by an undertaking may affect trade between Malta and any one or more Member States. The Civil Court was also requested to establish an appropriate commission that the airlines should pay for the sale of each airline ticket and any other ancillary services connected therewith.

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