ABSTRACT
This chapter deals with the most important aspects of competition, competition law and competition law enforcement within Europe. It looks at the scope KLM has for adjusting its prices and how the ties in with the type of market in which it operates. KLM has more scope to change prices on a route on which there is little competition, for whatever reason, than on a route where competition is fierce. This conclusion is open to generalisation: in a market with restricted competition a company has more freedom to set prices than in a market with fierce competition. KLM is, depending on the definition of the relevant market, the monopolist on the Amsterdam-Paramaribo route. In the airline industry a clear difference can be distinguished between operators like KLM and operators like Ryanair. The chapter also presents an overview of the key concepts discussed in this book.
