The Governance of Global Competition

The Governance of Global Competition

Competence Allocation in International Competition Policy

Oliver Budzinski

This book employs the economics of federalism to create an analytical framework which can be used for comparative analysis of stylised competence allocation rules. The result is a proposal for a sound international multilevel competition policy system that combines elements of both centralized and decentralized governance. This book provides an innovative and unique perspective on international competition policy and will be of interest to economists, legal scientists and competition authorities as well as academics and practitioners of international governance and international relations and politics.

Chapter 3: International Competition Policy between Decentralism and Centralism

Oliver Budzinski

Subjects: economics and finance, competition policy, law - academic, competition and antitrust law


In this chapter, I contrast the two extreme views, namely ‘there is no need for an international competition policy at all’ (section 1) and ‘we need an uniform global competition law, enforced by a single world authority’ (section 2). In doing so, it becomes clear that any real-world international competition policy regime is, and will be, set somewhere in between those extremes (section 4). Neither of the simple but extreme solutions is suitable for addressing the internationalisation of business activities adequately. This provides the grounds for a more differentiated discussion of this issue in Chapters 4 to 6.1 An excursus complements this chapter. It addresses a specifically academic discussion of the necessity of an internationalisation of antitrust, which deserves special treatment. Section 3 deals with a second-order problem: does competition itself provide an instrument to derive or generate an international competition policy regime? This points towards the role of institutional or regulatory competition of competition rules. 1. THE LIMITS OF NATIONAL COMPETITION POLICY REGIMES IN GLOBALISED MARKETS To internationalise competition policy, at first glance, seems to be a highly logical consequence of the internationalisation of competition. Globalising markets imply that the objective of regulation geographically exceeds the regulating jurisdiction. The resulting incongruence of the borders of competitive interaction and competition control is intuitively problematic. This is embedded in the more general issue of global governance, that is, the generally upheld fear that the nation state loses its regulatory power in the face of Since many of the arguments used to...

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