Why competition law
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Why competition law ?. Economic performance Social welfare Well being of consumers. Perfect competition. Very large number of buyers and sellers all producing identical/homogenous products Consumers have perfect information about products and markets No barriers to entry or exit the market

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Why competition law ?

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Why competition law

Why competition law?

  • Economic performance

  • Social welfare

  • Well being of consumers


Perfect competition

Perfect competition

  • Very large number of buyers and sellers all producing identical/homogenous products

  • Consumers have perfect information about products and markets

  • No barriers to entry or exit the market

  • Theoretical model


Barriers to entry

Barriers to entry

  • Costs

  • Technology

  • Financial

  • Demand

  • Legal barriers


Monopoly

Monopoly

  • Only one producer

  • No substituteproducts

  • Barriers to entry

  • Licences

  • Legal monopoly

  • Natural monopoly


Economy of scale

Economyofscale

  • Fixedcosts

  • Variablecosts

  • Marginalcosts

  • Economyofscale


Why is monopoly not good

Why is monopolynotgood?

  • Viewandbehaviourofcustomers

  • Natural economicbehaviour

  • Indispensablebusiness partner

  • No competition

  • No innovation

  • Marketeconomy vs. Plannedeconomy


Workable competition

Workablecompetition

  • Imperfectcompetition

  • The best societyhasinvented

  • Lowbarriers to entry

  • Information to consumers

  • Variousschools

  • Competitionpolicy

    • What are goalsofcompetition


Against competition

Againstcompetition

  • Does it always work?

  • Does it work in all sectors?

    • Nature ofactivity

  • Cuttingcostsmight influence safety

  • No protectionofconsumers

  • Do all countriesneed it ? – matterofpriorities

  • Competition is reality


What is competition law

What is competitionlaw

  • Agreements

  • Abuseofdominance

  • Controlofconcentrations

  • Liberalization

  • State aids


Objectives of competition law

Objectivesofcompetitionlaw

  • Workablecompetition

  • No prevention, restriction or distortionofcompetition

  • Lowprices

  • Goodquality

  • Protectionofconsumers

  • Economicefficirency

  • Protectionofcompetitors

  • ProtectionofSMEs

  • Economicdevelopmentof all geographicalareas

  • Employment

  • Freedomofcontract

  • Competitivness on othermarkets

  • Democraticvalues

  • Protectionofinternalmarket


Why competition law

internal market

free movement

of goods

(Art 28 TFEU)

free

movement

of persons

(45-48 TFEU)

free

movement

of capital

(63-66)

free movement of

services and right

of establishment

(49-62)

prohibitionofdiscrimination on groundofnationality– Art 18

competition law

(Arts 101-106)

state aids

(Arts107-109)


Competition law and other areas of law

Competition law and other areas of law

  • Competition law is public law

  • Unfair competition

  • Contract law/commercial law

  • Criminal law

  • Administrative law

  • Protection of consumers

  • Public procurement

  • Procedure


Competition law and related policies

Competitionlawandrelatedpolicies

  • Competitionlawandeconomics

  • Competitionlawandeconomy

  • Competitionlawandtradeandindustrialpolicy

  • Competitionlawandpoliticalgoals


History of competition law

History of competition law

  • Darcy vs. Allein (Case of monopolies), Court of King’s bench, 1602

  • US antitrust law

    • Sherman act

    • Clayton act

  • Germany and Japan between WWI and WWII

  • EU (EEC)


Sherman act

ShermanAct

  • "Section 1. Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine....

  • Section 2. Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine...."


Contemporary competition law

Contemporary competition law

  • More than 100 jurisdictions

  • International (transnational) competitionlaw

  • EU + EEA

  • Associationagreements

  • Europeancompetitionnetwork

  • Bilateralagreements

  • Internationalcompetitionnetwork


Eu competition law

EU competitionlaw

  • Internalmarketcontext

  • Sources

    • TFEU

    • Regulations

    • Notices

    • Guidelines

    • Best practices

    • Decisionsof EC

    • Judgmentsof General court andCourtofJustice

    • AnnualreportsoftheCommission


Eu and accession

EU andaccession

  • Utmostimportanceofcompetitionlaw – harmonisation

  • Stabilisationandassociationagreement

  • Importanceofimplementation

  • Practice

  • Administrativecapacity

  • Applicationofeuropeanlawbeforeaccession?

  • Art 74 CroatianCompetitionact


Competition law vs regulation

Competitionlaw vs regulation

  • Liberalisation

  • Servicesof general economicinterest

  • Servicesof general interest

  • Art 106/2 TFEU

  • Art 14 TFEU


Enforcement of competition law

Enforcementofcompetitionlaw

  • Competitionauthorities

  • Courts

  • Publicenforcement

  • Privateenforcement

  • Art 66 CA

  • Art 67 CA

  • General andsectoralcompetitionlaw


Competition agency

Competitionagency

  • Publicauthority

  • Competitioncouncil

  • Independence, autonomy, no political influence fromexecutivebranch – why?

    • Can it work?

    • Examples

  • appointment


Competences of competition agency

Competencesofcompetitionagency

  • Substantive

  • Procedural

  • General – policyissues

  • Initiationofproceedings ex offo

  • Arts 41-46 CA

  • Collectionofinformation

  • Interimmeasures

  • Imposingoffines


Protection of parties in the proceedings

Protectionofpartiesintheproceedings

  • Statementofobjections

  • Rightof access to file

  • Businesssecret

  • Oralhearing

  • Court review


Definition of undertaking

Definition ofundertaking


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