EU COMPETITION POLICY

INTRODUCTION TO THE COURSE

AGENDA

1. Introduction & brainstorm

2. Introducing ‘EU Competition Policy’
3. Practicalities of the course
4. Questions?

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1. INTRODUCTION & BRAINSTORM
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What is ‘competition’?

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1. INTRODUCTION & BRAINSTORM

A multi-layered concept…

• diverse interpretations

• rivalry between undertakings

• to gain sales, make profits,…
• out of self-interest, but result is beneficial to society

• diverse market structures

 with more and less fierce competition

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What are the ‘benefits’ of competition?

Why do we want ‘competition’ in the

market?

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 1. INTRODUCTION & BRAINSTORM

• efficient allocation of ressources

• distrust of monopolies, e.g.:

• economical (e.g. deidweight loss (net-los for society))
• political: no sympathy for monopoly profits and/or concentration of power (for example,
discussion on ‘big tech’)

• EU context -> level playing field!

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 NEED FOR A COMPETITION POLICY?

Competition policy aims to ensure that competition in the market is not

restricted in a way that is detrimental to society

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 1. INTRODUCTION & BRAINSTORM

NEED FOR A COMPETITION POLICY:

• theory vs real world

• preventing / restoring distortion of competition

• other interests (consumer welfare, labor (e.g., US discussion on non-

competes), environmental, societal, etc.)

• EU context -> EU State aid rules and need for supranational control

However, may depend on the context / jurisdiction!

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 We will discuss these questions mainly from an EU
competition policy perspective

However, do not forget other possible jurisdictions (US, UK,

China, etc.)

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2. INTRODUCING EU COMPETION POLICY
2. INTRODUCING ‘EU COMPETITION POLICY’

‘Antitrust’ State aid rules

‘Merger control’
Preventing Limiting (potential)
Preventing
anticompetitive distortions to
anticompetitive
practices and abuse competition in and
concentrations
of dominance trade on the internal
market resulting from
state interventions

‘THREE PILLARS’
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 2. INTRODUCING ‘EU COMPETITION POLICY’
ANTICOMPETITIVE PRACTICES

Horizontal agreements such as:

• price agreements;
• output restrictions;
• market allocations; or
• bid riggings.

Vertical agreements such as:

• exclusive supply agreements;
• tie-ins; or
• resale price maintenance.

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EXAMPLES

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 2. INTRODUCING ‘EU COMPETITION POLICY’
ANTICOMPETITIVE PRACTICES

Abuse of dominance by an undertaking, for example via:

• exploitative practices:
• excessive pricing;
• discrimination;

• exclusionary practices:
• predatory pricing;
• refusal to deal.

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EXAMPLES

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2. INTRODUCING ‘EU COMPETITION POLICY’

Mergers and potential distortive effect:

• horizontal mergers involving competitors

• vertical mergers involving undertakings in the vertical supply chain

• conglomerate mergers involving undertakings in different lines of business

• other types of ‘concentration’, such as:

• an acquisition; or
• a (full function) joint venture.

These kind of transaction could lead to a distortive effect on the market.

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EXAMPLES

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2. INTRODUCING ‘EU COMPETITION POLICY’

Need for EU State aid rules to ensure a level playing field on the internal market:

• EU Member States may not grant State aid to one or more undertakings

• State aid: a selective economic advantage, paid through State ressources and
imputable to a Member State, which (potentially) distorts competition and
(potentially) affects interstate trade

• However, important exceptions (i.e. ‘compatible State aid’)

• EU context only, although notion starts to surface in other jurisdictions

(recently, also ‘extraterritorial State aid rules’: the Foreign Subsidies
regulation).

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EXAMPLES

Introduction to competition policy

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2. INTRODUCING ‘EU COMPETITION POLICY’

Plenty of other important and relevant ‘rules’ for safeguarding competition:

• EU policy and rules on liberalising markets (postal, railway, etc.);

• public procurement rules;

• four freedoms (goods, services, persons and capital);

• free trade agreements;

• …

We will focus on the three aforementioned ‘pillars’

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 2. INTRODUCING ‘EU COMPETITION POLICY’

Clear need for ‘enforcement’ of the rules!

Enforcement by:

• competition authorities;

• national courts; or

• other enforcers?

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National Competition Authorities (NCAs) such as:

• Competition & Markets Authority (UK)

• Belgian Competition Authority

• Bureau of Competition (US)

• Korea Fair Trade Commission

• …

Supranational Competition Authority:

• European Commission (DG COMP)!

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DG COMPETITION EUROPEAN COMMISSION

Margrethe Vestager
Executive vice president
Commissioner for competition

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2. INTRODUCING ‘EU COMPETITION POLICY’

• National courts

• EU Courts:
• European Court of Justice (ECJ); and
• General Court (GC).

• Other parties…?

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2. INTRODUCING ‘EU COMPETITION POLICY’

Violation of the Competition rules may lead to:

• a fine;

• damages;

• criminal sanctions (imprisonment, etc);

• cease-and-decist orders;

• agreements are null and void;

• recovery of unlawful State aid;

• prohibition to implement a transaction;

• etc. (always check the jurisdiction!)

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3. PRACTICALITIES
 EU Competition Policy - Preliminary schedule 2022-2023

CHECK Class 1: Introduction to EU Competition Policy

CANVAS AND Class 2: Methodology of EU Competition Policy
YOUR Optional class: King’s in Brussels (see supra)
TIMETABLE
Class 3: EU State aid law: substantive framework
FOR THE
Class 4: EU State aid law: procedural framework
LATEST
UPDATES! Class 5: SGEIs – discussion on paper
Class 6: Antitrust: anticompetitive ‘agreements’
Class 7: Antitrust: abuse of dominant position
Class 8: Enforcement of Articles 101-102 TFEU
Class 9: Merger regulation
Class 10: Miscellaneous – Paper
Discussion on paper
Extra class (if needed, will be communicated during the semester)
Deadline to submit: 15 May 2022, 23:59 (Brussels Time)
Presentations (time schedules will follow soon)
Presentations (time schedules will follow soon)

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 3. PRACTICALITIES

No ‘classic’ exam:
- ‘group paper’ on a case where the European Commission has adopted a decision

/10

- group presentation

/10

A student passes when the student obtains 10 or more, regardless of the partial
results

Lectures serve as preparation for both ‘assignments’ and are mainly scheduled in the first
part of the semester (gives you time to prepare the paper!)

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3. PRACTICALITIES

PAPER
• Each group prepares a paper on a ‘competition case’, i.e. a paper in which the
group critically assess a ‘case’ in which the Commision has taken a decision.

• The paper fulfills the normal requirements of a ‘scientific paper’ (table of

contents, bibliography, etc.) and contains at least the following parts (content):

• an introduction;
• case presentation (facts and figures and outcome of the decision);
• a critical analysis of the decision (why did the Commission decide this; do you agree with the
outcome of the case; give arguments pro and contra; what are the consequences of the
decision; are there any legal remedies left against the decisions?; etc.); and
• conclusion (outcome, results, future, impact, etc.).

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 3. PRACTICALITIES

Important

• Max 15 pages (including footnotes; excluding bibliography)!

• Times New Roman 11 (8 footnotes), spacing 1,25

• Style to refer to sources: see methodology class

• Think of the structure of your paper!

DEADLINE TO SUBMIT THE PAPER: 15 MAY 2023, 23:59 (Brussels Time).

Via CANVAS (information will follow: check ‘Announcements’)

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3. PRACTICALITIES

Important

‘Group work’

• Form a group: 2 or 3 students!

• send me an email with ‘group information’ by 28 February 2023 (names + email

adressess)

• if you did not find (a) partner(s) -> I will form groups

• send me an email with information (including a link to the Commission decision) on the
case you want to discuss by 15 March 2023 (I will approve or suggest a case).

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 3. PRACTICALITIES

Important

‘European Commission decision’

• Decision related to one of the three pillars (antitrust, merger regulation, State aid)

• Recent decision (beware of Court proceedings!!)

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 3. PRACTICALITIES

Problems, questions, etc.?

• Ask me during class…

• If not possible: do not hesitate to contact me via email!

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3. PRACTICALITIES
• Respect the formalities (!), e.g.:
• Max. length
• Submission

• Academic language
• clear language
• nuance
• correct language
• professionality

• Use of ‘sources’ (see next lecture)

• Content

• Structure

• Critical - original

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3. PRACTICALITIES

Group presentation:

• 15 min: present the case

• 15 Q&A:
• questions about the case and your paper
• questions about what we discussed in class
• questions about your own opinion

• PPT-presentation: mandatory!

• During week 15/5 and 22/5 (more information will follow soon!)

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4. QUESTIONS?
QUESTIONS?

Click icon to add picture

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