All European Treaties express an attitude towards integration, which first time had been formulated and later on realised with the Schuman Plan. From that point on, the economic integration evolved to its today‘s magnitude in form of a Common Market and the historical move towards the implementation of €-currency in these days. The advantages of a Common Market had ever been understood regarding the potentially continuing and sustaining growth, guaranteeing a relatively high standard of living in wide area of the Member States of the European Union. Further, the existence of the integrated market may lead to a more or less homogenous and harmonic development of the relations of the Member States and the union’s periphery. The notion that unfair or restraining acts and behaviour will not go along with the liberal minded treaties, and will therefor be prohibited, may be found already in the Treaty of the European Coal and Steal Community (ECSC) from 1952. According to the Single European Act of 1986, an internal market shall be established, characterised by the free movement of goods and services, persons and capital. Article 10 of the TEU requests the Member States „to ensure fulfilment of the obligations arising out of this Treaty or resulting from action taken by the institutions of the Community”. Correspondingly, the Member States “shall abstain from any measure which could jeopardise the attainment of the objectives of this Treaty”. From these less restrictive formulations result some obligations for the Member States in order to assure a free market and liberal competition1. In contrast to some other but less “communised” field of European policies this is drawn to that extent that national competition regulation are supposed to be adapted, or even abolished, to ensure the jurisdictional unity and equality of competition throughout the European Union (EU) 2.
The foundation of European competition law results from Article 81 TEC (restriction of competition) and Article 82 TEC (abuse of dominating position). Article 83 to 89 TEC concern additional regulations, which might not be covered with this paper. According to EMMERICH and despite some more or less spectacular decisions made by the respective competition authorities one can hardly assert that a unique and workable European competition policy is in existence now3.
[...]
_____
1 Schmidt/Schmidt (1997), p. 3.
2 Zuleeg (1997), p. 129.
3 Emmerich (1994), p. 512.
Table of Contents
1. Introduction
2. Terminology and Definitions
2.1 Goals of European Competition Policy
2.2 Applicability of the European Competition Law and Policy
3. EU Competition Policy
3.1 Strategy of mediation
3.2 Strategy of impediment
3.3 Strategy of concentration
4. European Competition Policy and Merger control (Fusionskontrolle)
5. Critical issues of the European Competition Policy
Objectives and Topics
This paper examines the mechanisms and strategies of the European Union's competition policy, focusing on how regulation addresses market distortions to maintain a functioning Common Market. It explores the central research question of how the EU balances the need for competitive market structures with industrial policy interests and the challenges posed by economic integration.
- Theoretical foundations of EU competition law and its goals.
- Categorization of market-restraining behaviors: mediation, impediment, and concentration.
- Legal framework of merger control within the European Community.
- Institutional challenges and the political influence on competition enforcement.
- Evaluation of the current effectiveness of the European competition regime.
Excerpt from the Book
3.1 Strategy of mediation
Strategy of mediation is one of the crucial and indigenous possibilities to conduct a somehow anti-competition appearance. The term itself refers to jurisdictional limitations or restrictions of the behaviour relevant to the competition process and the freedom of independent decision-making, resulting out of contracts (whether fixed in writing or not), resolutions, or analogous behaviour of jurisdictional independent subjects.
The most known forms of this strategy are cartel agreements, parallel and co-ordinated acts, and fixed or at least advocated prices. Characteristically for the behaviour of subjects is the effort to achieve one common goal. Vertical strategies of mediation additionally might be identified by certain exchange (not necessarily in material matters), which limits the freedom of at least one party in competition matters in its possibility to establish or conduct its relation to a third party. The result of this way of performance is simply that the normal price mechanism is eliminated. Thus, the processes on the market are disturbed, which ensues in the neutralisation or even abrogation of the market functions, i.e. the guaranteeing and salvation of freedom, wealth, and justice. Both, monopolistic setting of prices and certain inefficiencies in the allocation of factors (capital, raw material, labour force, etc) probably might appear as a result of that, compared with a loss in society’s welfare.
Only in few and particular cases strategy of mediation may prove beneficial in regard to the over all welfare of the society or even the Common Market. Hence, some gains regarding increased efficiency might exceed the disadvantages. Therefor Article 81 par. 3 TEC allows on European level for so-called rationalisation cartels. It enables groups of companies internally to reduce their cost, or in opposite to improve their productivity.
Chapter Summary
1. Introduction: Outlines the historical evolution of European economic integration and the fundamental necessity of a competition policy to support the Common Market.
2. Terminology and Definitions: Defines the core goals of competition policy and discusses the conditions for applying EU competition law over national regulations.
3. EU Competition Policy: Categorizes restrictive behaviors into three distinct strategies: mediation, impediment, and concentration, while noting specific regulatory exceptions.
4. European Competition Policy and Merger control (Fusionskontrolle): Analyzes the administrative role of the European Commission in assessing mergers and the difficulty of balancing industrial policy with competition mandates.
5. Critical issues of the European Competition Policy: Evaluates the influence of political interests on competition enforcement and identifies the lack of a sustainable, long-term regulatory strategy.
Keywords
European Union, Competition Policy, Common Market, Merger Control, Article 81 TEC, Article 82 TEC, Strategy of Mediation, Strategy of Impediment, Strategy of Concentration, Industrial Policy, Economic Integration, Market Distortion, Rationalisation Cartels, European Commission, Competition Law.
Frequently Asked Questions
What is the primary focus of this work?
The paper examines the implementation and theoretical framework of the European Union's competition policy, specifically analyzing how it manages various anti-competitive behaviors and market structures.
What are the central thematic areas?
The work centers on the goals of European competition law, the classification of market restraints (mediation, impediment, concentration), and the complexities of merger control within the EU.
What is the main research question or goal?
The goal is to determine how the European competition regime maintains a "workable competition" while navigating the influence of national industrial policies and the complexities of the Common Market.
Which methodology is employed?
The research is based on a legal and economic policy analysis, examining the EU treaties (specifically articles of the TEC), regulatory frameworks, and scholarly perspectives on European competition law.
What topics are discussed in the main part?
The main part covers the specific strategies of mediation (cartels), impediment (dominant position abuse), and concentration (mergers), as well as the jurisdictional role of the European Commission.
Which keywords characterize this work?
Key terms include European Competition Policy, Common Market, Merger Control, Antitrust law, and market concentration strategies.
How does the author define a "strategy of mediation"?
It is defined as a behavioral restriction, such as cartel agreements or price-fixing, where subjects coordinate to limit independent decision-making and avoid market competition.
Why is merger control considered contentious within the European Union?
Merger control is debated because it sits at the intersection of competition law and broader industrial policy, where institutions must weigh the need for efficient markets against political desires for regional cohesion or strength against extra-European competitors.
- Citation du texte
- Heiko Bubholz (Auteur), 2002, EU Competition Policy, Munich, GRIN Verlag, https://www.grin.com/document/5544
