recent developments in european and czech competition law

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Recent developments in European and Czech competition law. Prague, 7 November 2008 INTRODUCTION Tomasz Kramer LL.M. Course director Academy of European Law - ERA Section II - European Business Law Metzer Allee 4, D-54295 Trier Phone: +49 651 9 37 37 20 Fax: +49 651 9 37 37 90 www.era.int. - PowerPoint PPT Presentation

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Recent developments in European and Czech competition law

Prague, 7 November 2008

INTRODUCTION

Tomasz Kramer LL.M.

Course director

 

Academy of European Law - ERA

Section II - European Business Law

Metzer Allee 4, D-54295 Trier

Phone: +49 651 9 37 37 20

Fax: +49 651 9 37 37 90

www.era.int

Why do we need competition law?

1. What is competition?

2. Basic economic rationale for protection of

competition

3. Goals of competition policy

4. Current situation

Economic rationale for protection of competition

Monopoly – is sub-optimal – DWL and the

consumers get less products and at higher

prices

Competition maximises efficiency, welfare and

serves consumers with the lowest possible

prices

Goals of competition policy

1. Enhance efficiency – maximisation of welfare by allocative /

productive / innovative or dynamic efficiency

Q: total welfare or consumer welfare?

2. Market integration

3. Consumer protection, new and better products, bigger choice

4. SMEs

Q: Not efficiency but equity/fairness?

Q: Should competition law protect competition or competitors?

5. Other „horizontal“ consideration? Environment, social policy,

industrial policy...

European framework

for the competition law

Article 81 TEC

1. Prohibition of cartels under Article 81(1) (unlike exemption

under 81(3) )

2. Prohibition of any agreements of undertakings which distortion

of competition. However, exemption under 81(3) is possible

for pro-competitive ventures.

European framework

for the competition law

Article 82 TEC

1. Prohibition of abuse of dominant position by the undertakings.

2. Recent debate on the economic sense of the said provision.

3. Consequence – focus on exclusionary abuses i.e. those

conducts of dominant firms which lead to exclusion or

elimination of fringe competitors from the market e.g.

predatory pricing, (and not on exploitative ones which are

inherent to the dominant firms).

European framework

for the competition law

Merger Control

1. Prohibition of M&A, fusions concentrations, certain JVs which

could lead to impediment of competition e.g. by way of

creating a dominant firm.

Modernisation of competition law

More economic approach

Regulation 1/2003

Decentralisation of competition law – e.g. no more notification to

the European Commission of agreements in order to benefit

from Art. 81(3) TEC exemption, but self-assessment.

Increased role of National Competition Authorities and

national judges.

Also new merger regulation, State Aid Action Plan, reform of art.

82 TEC etc.

Thank you!

Tomasz Kramer

tkramer.era.prog2@era.int

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