Competition Policy in Difficult Economic Conditions – Part of the Solution or Root of the Problem?

Abstract

This project is to be an examination of the role competition law and enforcement has to play during times of economic difficulty, surveying the key areas of impact it has on the push for recovery and suggesting how best it should be adapted to contribute even more.

The structure of my paper is to be as follows: In the first section I will explore the main causes of the current economic crisis from a competition point of view, and evaluate some of the most prominent responses from commentators as well as their inherent dangers. From there I will move on to examine how previous analogous crises were dealt with by competition authorities, and hopefully find some worthwhile lessons. In light of the current problems and previous experiences, I intend to examine and evaluate the practical approach taken by today’s authorities. In particular my paper will focus on the merger control regime, and whether it can be adapted or amended to make a fuller contribution to the recovery effort. Finally, I will conclude by discussing the overall balance struck between the need for strict enforcement and the need to adapt and change competition enforcement and policy to these difficult times.

Keywords: Competition, Financial Crisis

JEL Classification: K21