The EU's evolving stance on the international dimension of competition policy: A critical commentary

Davison, Leigh M.; Johnson, Debra

doi:10.1007/bf02928883

Cited by 5 publications

(7 citation statements)

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“…Considering the differences between national competition laws, an agreement on insufficient minimum standards could induce countries with higher standards to adjust their regulations, thereby setting off a "race to the bottom" until all national competition policies reach the minimum level. At the end, the protection of international competition might be less effective than in the beginning [Davison/Johnson 2002].…”

Section: Efficiencymentioning

confidence: 96%

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Competing Ways Towards International Antitrust: The WTO versus the ICN

Bode

Budzinski

2005

SSRN Journal

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Various problems coming along with the ongoing globalization of markets and business activities like international cartels, monopolization of world markets, deterrence of market access in spite of relaxed trade barriers as well as jurisdictional conflicts about transnational mergers and alleged or actual anticompetitive business strategies call for the creation of an international antitrust regime. Two alternative avenues to internationalize antitrust policy are currently advanced by governments and antitrust authorities. The first avenue is to complement the World Trade Organization (WTO) by a board of supervision for international competition issues including a harmonized antitrust code. With the Doha Declaration (2001), the WTO members agreed to engage in negotiations on an international antitrust agreement, although the time schedule remains uncertain in the light of the Cancún failure. The second avenue was opened up by the creation of the International Competition Network (ICN, 2001), which addresses global antitrust concerns by policy coordination. This paper compares the two approaches against the background of economic and political criteria. It starts with a brief overview of the theoretical alternatives to cope with cross-border antitrust problems, such as the strengths and weaknesses of unilateral instruments (effects doctrine), bilateral agreements and (past) multilateral attempts. Following a descriptive characterization of the key features and underlying principles of the WTO and the ICN approach to international antitrust, the main section of the paper presents an analytical comparison of the two approaches. It is based on selected criteria, which are predominantly derived from institutional and political economics. The comparative performances and potentials of WTO-and ICN-styled international antitrust are evaluated regarding the internalization of externalities, agency problems and preference conformity, overall practicability & negotiation/implementation competences, efficiency of governance, protection of effective and efficient competition, * The authors thank Jörg Jasper for valuable comments on earlier drafts of the paper and Barbara Majireck for editorial assistance. All remaining errors are our responsibility. Dr. Budzinski gratefully acknowledges financial instruments of conflict resolution, and the capability to cope with changing environments. Additionally, the article examines another dimension of the process towards an international antitrust regime, which has been neglected so far in the literature. Are their benefits and/or deficiencies of having a 'competition of ways' to select the superior regime? This points to the theory of institutional (or regulatory) competition. The final section presents conclusions.

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Section: Efficiencymentioning

confidence: 96%

“…Due to strategic bargaining, WTO negotiations on international competition issues will presumably not lead to the preferential outcome. A commitment to achievable (consensual) minimum standards might well be insufficient to face global competition challenges [Davison/Johnson 2002].…”

Section: Negotiation and Implementation Of International Competition mentioning

confidence: 99%

Competing Ways Towards International Antitrust: The WTO versus the ICN

Bode

Budzinski

2005

SSRN Journal

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“…) In the Dyestuff case in 1972 or in the Continental can case one year later, both the Court and the Commission refers to the unity of a group of firms. 18 (See Davison and Johnson, 2002. ) This principle assigns the practices of affiliates established within the EU to its parent company located abroad.…”

Section: The Extraterritoriality Principlementioning

confidence: 99%

“…Differences between the Effect doctrine and the Implementation doctrines may exist when an agreement implemented outside the EU produced some effects on the EU market. (See Davison and Johnson, 2002.) 21 The U.S. Supreme Court examined the extraterritorial principle the first time in 1909 for the American Banana Co. v. United Fruit Co.…”

Section: The Extraterritoriality Principlementioning

confidence: 99%

European Competition Policy in International Markets

Bertrand

Ivaldi

2006

SSRN Journal

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“…In the following, the US administration has eventually been successful in convincing the other key players in international competition policy to design a non-WTO forum in order to address cross-border competition issues. Although the EU still claims its preference for a WTO solution, it supports the US initiative and participates in the creation of the International Competition Network (Davison & Johnson 2002).…”

Section: General Features Of the International Competition Network (Icn)mentioning

confidence: 99%

The International Competition Network: Prospects and Limits on the Road towards International Competition Governance

Budzinski

2004

Competition & Change

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The establishment of the International Competition Network (ICN) opens up a new avenue towards an international competition policy regime. This article describes the underlying transmission mechanisms and governance modes of the ICN and connects them to the insights of modern economic theory. Based on the results, the prospects and limits of the ICN concerning conflict resolution, procedural efficiency, political economy fit and the conflicting areas of harmonization and decentralism of rules and policies are derived. It is shown that the ICN offers considerable merits, such as increasing procedural efficiency and facilitating consensus building. However, some problems of international competition governance, such as the focus on national interests and the scope for substantial conflict, are unlikely to be resolved within the ICN. Additionally, the attitude of the ICN towards future harmonization or preserving of institutional diversity remains unclear.

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The EU's evolving stance on the international dimension of competition policy: A critical commentary

Cited by 5 publications

References 1 publication

Competing Ways Towards International Antitrust: The WTO versus the ICN

Competing Ways Towards International Antitrust: The WTO versus the ICN

European Competition Policy in International Markets

The International Competition Network: Prospects and Limits on the Road towards International Competition Governance

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