Competition Policy in the European Union

Competition Policy in the European Union provides a comprehensive introduction to the European Union's policies on restrictive practices, monopolies and mergers, and state aid. Making use of legal and economic as well as political sources, the authors off

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Michelle Cini and Lee McGowan

©

Michelle Cini and Lee McGowan 1998

All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London WIP 9HE. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 1998 by MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 6XS and London Companies and representatives throughout the world ISBN 978-0-333-64302-0 ISBN 978-1-349-26710-1 (eBook) DOI 10.1007/978-1-349-26710-1 A catalogue record for this book is available from the British Library. 10 07

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Copy-edited and typeset by Povey-Edmondson Tavistock and Rochdale, England

Published in the United States of America 1998 by ST. MAR TIN'S PRESS, INC., Scholarly and Reference Division, 175 Fifth Avenue, New York, N.Y. 10010 ISBN 978-0-312-21505-7

Contents

List

of Boxes

and Tables

Vlll

Priface

IX

of Abbreviations

XI

1

Introduction Competition and competition policy Origins and influences Competition policy and European integration Organisation of the book

1 2 5 10 13

2

A History of European Competition Policy From coal and steel to EEC The first fifteen years: 1958 to 1972 From recession to stagnation: 1973 to 1981 Towards a 'new' competition policy Conclusion

15 l7 21 26 29 36

3

The Institutions of European Competition Policy The Parliament and the Council The European Commission The European Courts Conclusion

38 39 41 53 58

4

Restrictive Practices Policy Article 85[81]: regulating restrictive practices Block exemptions Policy practice Assessing restrictive practices policy Conclusion

60 61 66 69 75 79

5

Monopoly Policy Article 86[82] in context

80 80

List

v

Vl

Contents The Commission's analysis: demonstrating 'dominance' The Commission's analysis: assessing 'abuse' Assessing monopoly policy Conclusion

6 Com.m.ission Decision-Making in Restrictive Practices and Monopoly Cases Exposing anti-competitive practices Fact-finding and the investigation The formal proceedings The decision-taking stage Negotiating informal outcomes Conclusion

7 Merger Policy

The origins of European merger control Towards a coherent merger regime: procedure and practice Assessing merger policy Reforming the European merger rules Conclusion

8

State Aid Policy Organisation, powers and decision-making Towards a cohesive state aid regime Policy content Assessing state aid control Conclusion

9 The 'New' Com.petition Policy: The Public Sector and the U