INTRODUCTION TO ANTITRUST AND COMPETITION POLICY Spot the - - PowerPoint PPT Presentation

▶
introduction to antitrust and competition policy spot the
SMART_READER_LITE
LIVE PREVIEW

INTRODUCTION TO ANTITRUST AND COMPETITION POLICY Spot the - - PowerPoint PPT Presentation

Jan 24, 2023 257 likes •423 views

INTRODUCTION TO ANTITRUST AND COMPETITION POLICY Spot the differences p p A A S MC p M . . . . . . . . . . . . . . . . . . p C . . . C . . . . . B . . . . . . . . . . . . . . . . . . . . . .

slide-1
SLIDE 1

INTRODUCTION TO ANTITRUST AND COMPETITION POLICY

slide-2
SLIDE 2

Spot the differences

D S pC qC p q

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D MR MC pM qM p q A B C

Solution: surplus, distribution, rent seeking.

slide-3
SLIDE 3

Outline

  • Competition policy in the US
  • Competition policy in Europe
  • Main areas of competition policy
slide-4
SLIDE 4

Outline

  • Competition policy in the US
  • Competition policy in Europe
  • Main areas of competition policy
slide-5
SLIDE 5

Competition policy in the US: players

  • Department of Justice
  • Federal Trade Commission
  • Sectoral regulators (e.g. FCC, FAA)
  • District Courts
  • Supreme Court
slide-6
SLIDE 6

Competition policy in the US: sources

  • Sherman Act

− Section 1: Horizontal and vertical agreements − Section 2: Abuse of dominant position

  • Clayton Act. Following illegal if substantially lessen competition

− Section 2: Price discrimination − Section 2: Exclusivity agreements − Section 7: Mergers and acquisitions

  • Federal Trade Commission Act

− Section 5: Unfair methods of competition are unlawful

  • Regulations and guidelines:

− Merger guidelines − Leniency program

slide-7
SLIDE 7

US recent developments

  • September 2008 report: “Competition and Monopoly: Single-Firm

Conduct Under Section 2 of the Sherman Act.”

  • Provide greater clarity by summarizing DOJ’s views (stress on firm

efficiencies created by several practices).

  • FTC disowns report the same day.

May 2009: new Assistant Attorney General Christine Varney withdraws report effective immediately.

  • August 2010: FTC and DOJ jointly publish new Horizontal

Merger Guidelines.

slide-8
SLIDE 8

Outline

  • Competition policy in the US
  • Competition policy in Europe
  • Main areas of competition policy
slide-9
SLIDE 9

Competition policy in Europe: players

  • DG Comp, part of the European Commission (EC)
  • National competition authorities
  • Court of First Instance (CFI)
  • European Court of Justice (ECJ)
slide-10
SLIDE 10

Competition policy in Europe: sources

  • EC Treaty: Articles 101 and 102 (formerly 81,82; or 85,86)

− 101: Horizontal and vertical agreements − 102: Abuse of dominant position

  • EC Regulations, e.g.:

− Regulation 4064/1989 (mergers) − Regulation 2790/1999 (block exemptions to Art 101)

slide-11
SLIDE 11

EU recent developments

  • December 08 guidance document or Art 102 (then 82).
  • General principles are similar to those of U.S. policy:

What really matters is to protect an effective competitive process and not simply protecting competitors (pp 4–5).

  • But: EU policy places greater burden on defendant than US policy.
slide-12
SLIDE 12

Outline

  • Competition policy in the US
  • Competition policy in Europe
  • Main areas of competition policy
slide-13
SLIDE 13

Price fixing

  • Explicit collusion is illegal (a criminal offense in US, UK, Ireland)
  • Implicit collusion is not illegal
  • Implicit collusion is frequently more effective
  • Per se vs rule of reason
  • Leniency programs
slide-14
SLIDE 14

Merger policy

  • US guidelines, EU regulation
  • Efficiency vs market power
  • Market definition
  • HHI thresholds
slide-15
SLIDE 15

Abuse of dominant position

  • Tying
  • Vertical squeeze
  • Predation
  • Exclusive dealing