Competitive success and the law: The case of Tetra Pak

In July 1991, the European Commission imposed its highest-ever fine for abuse of market power and restraint of competition against Tetra Pak, the Swedish/Swiss packaging company. Ralf Boscheck presents a case study of this decision arguing that the EC investigators may not have defined the market correctly and, in fact, may have misinterpreted the true basis of Tetra Pak's competitive advantage. It is suggested that policy makers and companies must engage in dialogue over society's welfare costs and benefits and corporate competitive advantage if competition law is to be efficient.