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‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues ACLE Fourth Annual Competition & Regulation Meeting on the specialty topic of ‘EC Competition Enforcement Data’ Eline Poelmans, Research Doctoral Candidate, Catholic University of Leuven, Belgium ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues 1. The emergence of a ‘common’ competition policy in the ECSC 2. The competition laws of the ECSC 3. Data Issues 4. Conclusions 5. Acknowledgements ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues 1. The emergence of a ‘common’ competition policy in the ECSC • • • US: first federal ‘competition law’: Sherman Antitrust Act (1890) Europe: first ‘European’ competition laws only in the second half 20th century 1952: foundation of the European Coal and Steel Community (ECSC) by West Germany, France, Italy, Belgium, The Netherlands and Luxembourg Analysis of - how the concept of ‘competition’ was perceived - how the ECSC competition laws were implemented in the first 15 years of the ECSC (1952-1967) ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues 2. The competition laws of the ECSC • The obligation of the HA to liquidate any restrictions on the competition principle (articles 2 and 5) • Article 65: deals with prohibiting ‘anticompetitive agreements’ • Article 66: deals with ‘concentrations’ and ‘misuses’ of economic power • A ‘notification obligation’ to the High Authority (for article 65 and 66) • Made law by the HA in July 1953 for article 65 and in May 1954 for article 66 ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues 3. Data Issues for ‘agreements’ and ‘concentrations’ eg. for ‘concentrations’ • I. Approval Ratio • 1. Method - # approval requests for ‘concentrations’ submitted to the HA - # approved requests for concentrations • 2. Sources - ‘yearbooks’ of the ECSC + common yearbook of the ECSC, Euratom and the EEC - other sources (Archives of the European Commission in Brussels) - the authorizations for concentrations made by the HA ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues • 3. Approval ratio (ar) (eg for the ‘concentrations – article 66) 136 [ ie # of approved concentration requests ] ar = -------------------------------------------------------------------------- = 0.415 ( = 42 %) 328 [ ie # of concentration approval requests] But ... (see table: Requested versus approved concentrations in the ECSC between 1952 and 1967) ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues Year 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 T # new procedures requested 0 1 14 38 40 11 12 20 14 14 16 19 31 39 34 25 328 Total # new procedures requested (cumulative) 0 1 15 53 93 104 116 136 150 164 180 199 230 269 303 328 328 # procedures approved 0 1 6 4 9 7 5 7 5 7 6 8 16 22 21 12 136 Total # procedures approved (cumulative) 0 1 7 11 20 27 32 39 44 51 57 65 81 103 124 136 136 # procedures concluded 0 1 13 14 18 15 13 38 18 10 10 10 19 25 28 35 267 Total # procedures concluded (cumulative) 0 1 14 28 46 61 74 112 130 140 150 160 179 204 232 267 267 Pending at the end of the year 0 0 1 25 47 43 42 24 20 24 30 39 51 65 71 61 / Total # procedures at the beginning of the year (pending + new) 0 1 14 39 65 58 55 62 38 34 40 49 70 90 99 96 / ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues Year 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 T # requests that weren’t approved (yet) or where it wasn’t necessary to submit a request 0 0 7 10 9 8 8 31 13 3 4 2 3 3 7 23 131 (1) Art 66 not applicable 0 0 1 7 7 3 8 29 12 3 3 2 2 3 3 9 92 (2) Further investigation needed (§5) 0 0 2 0 0 1 0 0 0 0 0 0 0 0 0 0 3 (3) Approval request for concentration that occured before ratification of article 66 0 0 4 2 2 3 0 0 0 0 0 0 1 0 0 0 12 (4) Exemption (§3) 0 0 0 1 0 1 0 2 1 0 1 0 0 0 4 14 24 ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues • • 136 [ ie # of approved concentration requests ] ar = ----------------------------------------------------------------------------------- = 0.596 (= 60%) 228 [ ie # of conclusions (267) - # of pending investigations (3) - # of requests for concentrations already established before article 66 became law (12) - # of exemptions (24) ] approval ratio increases from approximately 42 to 60 % ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues • II. Characteristic features of the companies that were successful in having their ‘concentration’ requests approved by the High Authority • Sources - ‘yearbooks’ of the ECSC + common yearbook of the ECSC, Euratom and the EEC other sources (Archives of the European Commission in Brussels) the authorizations for concentrations made by the HA ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues •Successful approval requests by country (1952-1967) 25 20 Italy the Netherlands Luxembourg 15 Belgium Community 10 France 5 West Germany ECSC 1967 1966 1965 1964 1963 1962 1961 1960 1952 1953 1954 1955 1956 1957 1958 1959 0 ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues • Possible questions: concentrations – – – • by country (also ‘cross border’ decisions) by type of concentration • simplified: eg coal, steel or coal-steel concentrations • more specific: different subdivisions: – steel-steelprocessing – coal-carbopetrochemicals – etc… by concentration procedure • acquisition of part of the shares • establishment of a new firm • merger • etc… Conclusions: biased by big countries (ie West Germany) ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues • Goal: analysis of - how the concept of ‘competition’ was perceived how the ECSC competition laws were implemented in the first 15 years of the ECSC (1952-1967) were there certain characteristic features of the concentrations in certain countries? can we find a link between the type of approved concentration and the relative importance of the coal and steel industries in the total industry of the different countries? what historical explanations can we find? etc… ‘Agreements and Concentrations’ in the ECSC Countries between 1952 and 1967: Data Issues 4. Conclusions 5. Acknowledgements Eline Poelmans, Research Doctoral Candidate, Catholic University of Leuven, Belgium