“Essential Facilities” are those facilities which are indispensable to a business enterprise providing goods and services in a relevant market, but duplication of which is prohibited by law or otherwise impossible due to physical constraint and ot...
“Essential Facilities” are those facilities which are indispensable to a business enterprise providing goods and services in a relevant market, but duplication of which is prohibited by law or otherwise impossible due to physical constraint and other obstacles. It is very important for the Essential Facilities to be made available to third parties in order to ensure that fair competition is effectively established. The “Essential Facilities doctrine” has been developed as a legal principle to regulate refusal to deal, which means a monopoly or monopolization in Sherman Act.
The Essential Facilities doctrine is closely connected with a telecommunication industry. The liberalization is now in progress in telecommunication industries world wide, and the Essential Facilities doctrine has brought an important legal basis to such progress of liberalization. The concept of access and interconnection must be understood in context of the Essential Facilities doctrine in competition law.
Art.5 Para.3 Subpara.3 and Para.4 Subpara.3 of Enforcement Decree of the Monopoly Regulation and Fair Trade Act(the Fair Trade Act) define denial of access to “essential elements” as interruption by a market-dominant business of its competitor's business activities and/or new market entry. Also the provisions requiring inter-connection and common use of networks in telecommunication have been codified before the Essential Facilities doctrine is ruled in the Fair Trade Act.
When industry-specific regulations governing the Essential Facilities are applied, we should ensure that such regulations do not conflict with the legal regime for the Essential Facilities founded in the Fair Trade Act. From the procedural and substantive aspects of the regulatory scheme, mutual cooperation and consultation system among relevant regulatory agencies may have to be refined.