Aurora García Gallego

Multiproduct activity and competition policy: The Tetra Pak case

We suggest the Tetra Pak case as a real-world example to study the implications of multiproduct activity for European Competition Policy. Tetra Pak, a monopolist in aseptic carton packaging of liquid food, competes with Elopak in the nonaseptic sector. The EC Commission used the effect of Tetra Paks dominance in the aseptic sector on its rivals performance as an evidence of the formers anticompetitive behavior. With linear demand and cost functions and interdependent demands, the Commissions position can be supported. However, a more general model suggests that the Commissions conclusions cannot be supported as the unique outcome of the analysis of the information available.