Table of Contents

Economic Theory and Competition Law

Economic Theory and Competition Law

ASCOLA Competition Law series

Edited by Josef Drexl, Laurence Idot and Joël Monéger

The context for this book is the increasingly complex relationship between economic theory and competition law which gives rise to lively political and academic debate on the direction competition law should take in a more global and innovation-oriented market place.

Preface

Edited by Josef Drexl, Laurence Idot and Joël Monéger

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

Extract

This book brings together the 17 contributions to the second conference of the Academic Society for Competition Law (ASCOLA) which was held at the University of Paris Dauphine and the University of Paris I-Panthéon Sorbonne on 8 to 9 December 2006. Economic theory has always been the basis of competition law. No competition law can be applied without a clear understanding by the enforcer or the judge of the economics of the market. Yet, economic theory is winning even more ground in competition law. In the European Union, this is mostly due to the policy decision of the Commission, taken under former Competition Commissioner Mario Monti, to implement the so-called ‘more economic approach’. This approach abandons the form-based approach and advocates an assessment of the legality of certain behaviour in the light of its impact on the relevant market. The more economic approach has so far been implemented by a new generation of block-exemption regulations, a fundamental reform of the Merger Control Regulation and is planned to be continued for the control of abuses of market dominance. Even control of State aid is not immune from economic reconsideration. In this brave new world, competition lawyers often have to cooperate with economists, for instance with regard to defining the relevant market and assessing market shares. Apart from a different approach to the application of competition law, the question is also whether the more economic approach changes the goals of competition law. Given this development, it is no wonder...