recent developments in european and czech competition law
DESCRIPTION
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 PresentationTRANSCRIPT
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.
