CCP Seminar: The Oligopoly Problem in EU Competition Law
March 21, 2013 Leave a comment
The Centre is delighted to welcome Nicolas Petit (University of Liege) as our guest this week. Amongst other ventures, Nicolas is known for co-authoring the very popular Chillin’Competition blog, with his colleague Alfonso Lamadrid de Pablo. He will be presenting his paper at this week’s CCP seminar, entitled ‘The Oligopoly Problem in EU Competition Law“. An abstract for his paper can be found below and a full-length draft is available here.
This paper offers a complete overview of the oligopoly problem in competition law and economics, with a specific focus on European Union (EU) law. A related purpose of the paper is to challenge the dominant view that merger control is the ultimate preventive remedy against tacit collusion. On close analysis, the merger-only enforcement paradigm against tacit collusion generates a systemic risk of type II errors. Part of this enforcement gap may, however, be alleviated through a more muscular enforcement of the rules on coordinated conduct (i.e. Article 101 TFEU) and on unilateral conduct (i.e. Article 102 TFEU). In this later respect, the paper formulates a possible theory of harm that would entitle agencies and courts to apply Article 102 TFEU to specific types of conduct by oligopolists.
The concept of abuse of collective dominance may in particular be applied to the artificial tactics which oligopolists adopt to protect an observed collusive equilibrium from the natural, disruptive effect caused by an external shock (entry, natural disaster, change in tax rate, etc.). In this sense, the paper is different from other scholarly proposals that recommend applying rules on unilateral conduct to excessive oligopoly prices and/or facilitating practices.