It is common for vertically integrated firms to sell wholesale products ("essential facilities") to other firms, while competing against those same firms in retail markets. In this situation the vertically integrated firm can obtain sensitive commercial or business information through its wholesale transactions that gives it a competitive advantage in its retail activities.
For example, suppose a vertically integrated incumbent firm is the sole source of dedicated access lines needed to provide retail private line services. Other firms may have no choice but to acquire wholesale dedicated access lines from the incumbent. To complete the wholesale transaction, the incumbent needs information about the identity, size, and other characteristics of end-users being targeted by its competitors. It could use this information to target the same end-users with superior service offerings, placing its competitors at a considerable competitive disadvantage. This would constitute a misuse of information (see Figure 1).
Figure 1: Misuse of Information
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Remedies for Misuse of Information