PowerPoint-Pr

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Prague, 7 November 2008 INTRODUCTION Tomasz
Kramer LL.M. Course director  Academy of
European Law - ERA Section II - European
Business Law Metzer Allee 4, D-54295 Trier
Phone [phone] Fax [phone]
90 www.era.int
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• What is competition?
• Basic economic rationale for protection of
  competition
• Goals of competition policy
• Current situation

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Monopoly is sub-optimal DWL and the consumers
get less products and at higher
prices Competition maximises efficiency, welfare
and serves consumers with the lowest possible
prices
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• Enhance efficiency maximisation of welfare by
  allocative / productive / innovative or dynamic
  efficiencyQ total welfare or consumer welfare?
• Market integration
• Consumer protection, new and better products,
  bigger choice
• SMEsQ Not efficiency but equity/fairness? Q
  Should competition law protect competition or
  competitors?
• Other horizontal consideration? Environment,
  social policy, industrial policy...

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• Article 81 TEC
• Prohibition of cartels under Article 81(1)
  (unlike exemption under 81(3) )
• Prohibition of any agreements of undertakings
  which distortion of competition. However,
  exemption under 81(3) is possible for
  pro-competitive ventures.

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• Article 82 TEC
• Prohibition of abuse of dominant position by the
  undertakings.
• Recent debate on the economic sense of the said
  provision.
• Consequence focus on exclusionary abuses i.e.
  those conducts of dominant firms which lead to
  exclusion or elimination of fringe competitors
  from the market e.g. predatory pricing, (and not
  on exploitative ones which are inherent to the
  dominant firms).

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• Merger Control
• Prohibition of MA, fusions concentrations,
  certain JVs which could lead to impediment of
  competition e.g. by way of creating a dominant
  firm.

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More economic approach Regulation
1/2003 Decentralisation of competition law e.g.
no more notification to the European Commission
of agreements in order to benefit from Art. 81(3)
TEC exemption, but self-assessment. Increased
role of National Competition Authorities and
national judges. Also new merger regulation,
State Aid Action Plan, reform of art. 82 TEC etc.
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Tomasz Kramer tkramer.era.prog2_at_era.int