Presentation is loading. Please wait.

Presentation is loading. Please wait.

Why competition law? Economic performance Social welfare Well being of consumers.

Similar presentations


Presentation on theme: "Why competition law? Economic performance Social welfare Well being of consumers."— Presentation transcript:

1 Why competition law? Economic performance Social welfare Well being of consumers

2 Perfect competition Very large number of buyers and sellers all producing identical/homogenous products Consumers have perfect information about products and markets No barriers to entry or exit the market Theoretical model

3 Barriers to entry Costs Technology Financial Demand Legal barriers

4 Monopoly Only one producer No substitute products Barriers to entry Licences Legal monopoly Natural monopoly

5 Economy of scale Fixed costs Variable costs Marginal costs Economy of scale

6 Why is monopoly not good? View and behaviour of customers Natural economic behaviour Indispensable business partner No competition No innovation Market economy vs. Planned economy

7 Workable competition Imperfect competition The best society has invented Low barriers to entry Information to consumers Various schools Competition policy – What are goals of competition

8 Against competition Does it always work? Does it work in all sectors? – Nature of activity Cutting costs might influence safety No protection of consumers Do all countries need it ? – matter of priorities Competition is reality

9 What is competition law Agreements Abuse of dominance Control of concentrations Liberalization State aids

10 Objectives of competition law Workable competition No prevention, restriction or distortion of competition Low prices Good quality Protection of consumers Economic efficirency Protection of competitors Protection of SMEs Economic development of all geographical areas Employment Freedom of contract Competitivness on other markets Democratic values Protection of internal market

11 internal market free movement of goods (Art 28 TFEU) free movement of persons (45-48 TFEU) state aids (Arts ) free movement of capital (63-66) free movement of services and right of establishment (49-62) competition law (Arts ) prohibition of discrimination on ground of nationality – Art 18

12 Competition law and other areas of law Competition law is public law Unfair competition Contract law/commercial law Criminal law Administrative law Protection of consumers Public procurement Procedure

13 Competition law and related policies Competition law and economics Competition law and economy Competition law and trade and industrial policy Competition law and political goals

14 History of competition law Darcy vs. Allein (Case of monopolies), Court of Kings bench, 1602 US antitrust law – Sherman act – Clayton act Germany and Japan between WWI and WWII EU (EEC)

15 Sherman Act "Section 1. Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine.... Section 2. Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine...."

16 Contemporary competition law More than 100 jurisdictions International (transnational) competition law EU + EEA Association agreements European competition network Bilateral agreements International competition network

17 EU competition law Internal market context Sources – TFEU – Regulations – Notices – Guidelines – Best practices – Decisions of EC – Judgments of General court and Court of Justice – Annual reports of the Commission

18 EU and accession Utmost importance of competition law – harmonisation Stabilisation and association agreement Importance of implementation Practice Administrative capacity Application of european law before accession? Art 74 Croatian Competition act

19 Competition law vs regulation Liberalisation Services of general economic interest Services of general interest Art 106/2 TFEU Art 14 TFEU

20 Enforcement of competition law Competition authorities Courts Public enforcement Private enforcement Art 66 CA Art 67 CA General and sectoral competition law

21 Competition agency Public authority Competition council Independence, autonomy, no political influence from executive branch – why? – Can it work? – Examples appointment

22 Competences of competition agency Substantive Procedural General – policy issues Initiation of proceedings ex offo Arts CA Collection of information Interim measures Imposing of fines

23 Protection of parties in the proceedings Statement of objections Right of access to file Business secret Oral hearing Court review

24 Definition of undertaking


Download ppt "Why competition law? Economic performance Social welfare Well being of consumers."

Similar presentations


Ads by Google