EU competition policy

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

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

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).

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:

(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

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

Highest cartel fines imposed (1969 – 2007)

Further information

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