This article examines the relationship between the development of margin squeeze abuse in EU competition law and the liberalisation of network industries in the EU. It considers whether margin squeeze developed as an independent abuse in EU competition law because of utility liberalisation in the EU and examines whether the concurrent application of competition law and regulation in liberalised sectors has influenced the development of margin squeeze abuse. Potential explanations for the increase in margin squeeze investigations following liberalisation are explored, including whether competition law is being used to pursue industrial policy goals, particularly in the telecommunications and energy sectors. The article concludes that although margin squeeze in EU competition law has been, and remains, independent of its application to liberalised network utilities, investigation of this abuse is likely to continue to remain a feature of competition law enforcement in relation to the liberalised network industries only.