Squaring EU Competition Law and Industrial Policy: The Case of Broadband

28 Pages Posted: 14 Oct 2013

See all articles by Wolf Sauter

Wolf Sauter

Tilburg Law and Economics Center (TILEC); Dutch Healthcare Authority; Tilburg Law School; Netherlands Authority for Consumers and Markets (ACM)

Date Written: October 2013

Abstract

Industrial and competition policy are often seen as logical opposites: inherently conflicting. In my earlier research (1997) I have found that at EU level these two policies are in principle compatible if industrial policy is defined as promoting structural reform. This was illustrated by the telecommunications liberalization which was then ongoing. An update of this research based on the example of broadband roll-out shows that the finding of consistency remains the same or at least similar. However the impact of competition policy has broadened. It has moved from antitrust and mergers to include more active policies on state aid and sectoral competition policy. At the same time in the context of broadband these policies favour (i) more public intervention (aid) and (ii) perpetuate sectoral regulation where originally a rapid transition to general antitrust had been envisaged. This example suggests that to balance industrial policy and competition policy as a whole consistency and predictability – including between the different branches of competition policy – is essential.

Keywords: EU competition law; industrial policy; broadband; state aid

JEL Classification: K21; K23; L4; L5

Suggested Citation

Sauter, Wolf, Squaring EU Competition Law and Industrial Policy: The Case of Broadband (October 2013). Tilburg Law School Research Paper No. 017/2013; TILEC Discussion Paper No. 2013-021. Available at SSRN: https://ssrn.com/abstract=2339898 or http://dx.doi.org/10.2139/ssrn.2339898

Wolf Sauter (Contact Author)

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Dutch Healthcare Authority ( email )

Postbus 3017
Utrecht, 3502 GA
Netherlands

Tilburg Law School

Tilburg, 5000 LE
Netherlands

Netherlands Authority for Consumers and Markets (ACM) ( email )

PO Box 16326
2500 BH The Hague
Netherlands

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