Transcript EU competition policy
Overview of the EU’s competition policy
PhDr. Jan Havlík M.A.
Politics and Policies of the European union 12. 4. 2007
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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 2
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
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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) 4
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 5
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).
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MERGER CONTROL •
Merger Control :
(Art. 2 of Regulation No 4064/89) Operation which creates or strengthens a dominant position which impedes effective competition.
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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 8
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 9
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 10
The Decision Making Process - 1
The Commission can take action through different ways
Notification Ex-officio Complaint
Investigation
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The Decision Making Process - 2
Investigation
Statement of Objections
Hearing
Advisory Committee
Commission Decision
Judicial Review (Court of First Instance, Court of Justice)
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Fines imposed by the EC since 2002
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Highest cartel fines imposed (1969 – 2007)
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Further information
http://europa.eu.int/comm/competition/index_en.html
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Thank you for your attention.
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