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The Impact of Regulation 1/2003 in the New Member States


Kati Cseres


University of Amsterdam - Amsterdam Centre for European Law and Governance and Amsterdam Center for Law & Economics

July 1, 2010

Competition Law Review, Vol. 6, No. 2, pp. 145-182, July 2010

Abstract:     
Regulation 1/2003 entered into force on 1 May 2004 introducing a fundamental change in the enforcement of Articles 101 and 102 TFEU. 1 May 2004 also marked a fundamental change in the history of the EU: ten new Member States joined the European Union. The modernization of EC competition law enforcement has in fact taken place against the background of enlargement. Enlargement and the modernization of law enforcement had been closely connected to one and other not only in the field of competition law. This paper discusses the impact of Regulation 1/2003 in the ten new Member States situated in Central and Eastern Europe that joined the EU in 2004 and 2007. What makes these Central and Eastern European countries (CEECs) special is transition from command and control economy and totalitarian rule to market economy and to compliance with the rule of law. What makes implementation of EU rules in CEECs’ legislation special is the conditionality and the fact that Europeanization of these countries’ laws have been interacting with market, constitutional and institutional reforms. The paper discusses both the direct and indirect impact of Regulation 1/2003 in the legislation, enforcement models and institutional designs in these countries. The experience of the CEECs indicate that EU leverage has been the most noticeable and direct on the statutory enactments of substantive competition law, however, it has in an indirect way also influenced enforcement methods and institutional choices. The exceptional influence of the EU on the CEECs’ competition rules can be demonstrated by the fact that these countries often aligned their national laws even further than they were obliged to. However, in the less visible parts of the law such as procedural rules divergence can be substantial with important consequences for overall enforcement outcomes. Moreover, in the CEECs there is a significant difference between the black letter of the law and its active enforcement.

Number of Pages in PDF File: 38

Keywords: Competition Law, Enforcement, Reform, Institutional Design, New Member States

JEL Classification: K21, K42, L40

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Date posted: October 21, 2010  

Suggested Citation

Cseres, Kati, The Impact of Regulation 1/2003 in the New Member States (July 1, 2010). Competition Law Review, Vol. 6, No. 2, pp. 145-182, July 2010. Available at SSRN: http://ssrn.com/abstract=1695045

Contact Information

Kati Cseres (Contact Author)
University of Amsterdam - Amsterdam Centre for European Law and Governance and Amsterdam Center for Law & Economics ( email )
Oudemanshuispoort 4-6
Amsterdam, 1012 CN
Netherlands
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