Overview of the eu s competition policy
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Overview of the EU’s competition policy. PhDr. Jan Havlík M.A. Politics and Policies of the European union 12. 4. 2007. Outline. Why do we need competition policy? DG Competition The three pillars of EU Competition Policy DG Competition: Decision Making Process State aid Seminar activity.

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Overview of the eu s competition policy

Overview of the EU’s competition policy

PhDr. Jan Havlík M.A.

Politics and Policies of the European union

12. 4. 2007


Outline

Outline

  • Why do we need competition policy?

  • DG Competition

  • The three pillars of EU Competition Policy

  • DG Competition: Decision Making Process

  • State aid

  • Seminar activity


Why do we need competition policy

Why do we need competition policy?

  • Competition Policy ensures that markets

    • remain competitive (antitrust / anti-cartel enforcement / merger control)

    • become competitive (liberalisation)

  • Competitive markets

    • produce benefits for consumers

    • lead to technological innovation

  • Competition policy enhances consolidation

    • of the Internal Market

  • Competition policy contributes to ensuring the

    • competitiveness of European industry


Dg competition

DG Competition

  • Structure of DG COMP – Commissioner Neelie Kroes (NL), Director General Phillip Lowe, individual sectors (e.g.. Cartel, Services, etc.)

  • DG COMP & Member States’ competition authorities(e.g. CZ: Úřad pro ochranu hospodářské soutěže, GB: Office of Fair Trading)


Eu competition policy

EU Competition Policy

ANTITRUST

Restrictive agreements and concerted practices

MERGER CONTROL

Abuse of a dominant position and control of mergers

STATE AID

Undue State intervention


Antitrust

ANTITRUST

  • Art. 81 EC :

    Agreements which cause an appreciable restriction of Competition, such as e.g. price fixing or market sharing (and affect trade between Member States)

  • Art. 82 EC :

    Behaviour which constitutes an abuse of a dominant position, such as e.g. tying or discrimination (and affects trade between Member States).


Merger control

MERGER CONTROL

  • Merger Control :

    (Art. 2 of Regulation No 4064/89)

    Operation which creates or strengthens a dominant position which impedes effective competition.


State aid 1

STATE AID - 1

  • State Aid:

    (Art. 87 of the EC Treaty)

    Any aid granted by a Member State which distorts competition by favouring certain undertakings, in so far as it affects trade, shall be incompatible with the common market


State aid 2

STATE AID - 2

  • EC Treaty provisions (Art. 87, 88, 89)

    • State Aid is in principle incompatible with the common market

    • State Aid can be accepted only in exceptional cases, specified in the Treaty (exemptions from the ban on State aid)

    • Commission controls the application of these exemptions

  • Rationale :

    • Avoid distortion of competition within the internal market

    • Contribute to sound public finances

    • Promote economic and social cohesion


  • State aid 3

    STATE AID - 3

    Four criteria defining State aid:

    • Granted by a Member State or through State resources in any form whatsoever

    • Advantage that distorts competition

    • Selectivity

    • Effect on trade between Member States


    The decision making process 1

    The Decision Making Process - 1

    The Commission can take action through different ways

    Notification Ex-officio Complaint

    Investigation


    The decision making process 2

    The Decision Making Process - 2

    Investigation

    Statement of Objections

    Hearing

    Advisory Committee

    Commission Decision

    Judicial Review

    (Court of First Instance, Court of Justice)


    Fines imposed by the ec since 2002

    Fines imposed by the EC since 2002


    Highest cartel fines imposed 1969 2007

    Highest cartel fines imposed(1969 – 2007)


    Further information

    Further information

    http://europa.eu.int/comm/competition/index_en.html


    Thank you for your attention

    Thank you for your attention.


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