Competition Policy's Social Paradox: Are We Losing Sight of the Wood for the Trees?

European Competition Journal (2018) vol. 14

51 Pages Posted: 1 Nov 2018

Date Written: September 7, 2018

Abstract

The present contribution seeks to provide a normative justification for the better consideration of employment and its negative social consequences in the area of mergers. First, it challenges the widespread rhetoric of competition policy when advancing economic efficiency as a goal of competition policy. Second, it argues that the promotion of efficiency-driven, fierce competition comes at the expense of other sensible social values, such as job creation. As evidenced by statistics, this contribution unravels how job cuts follow from mergers and acquisitions. It argues (i) in favour of an overhaul of the efficiency defence with the aim of focusing more actively on job creation, or at least on balancing the number of job cuts with the number of newly created jobs and (ii) against anti-competitive practices such as social dumping and camouflage.

Keywords: Competition policy, employment, efficiency, social market economy, mergers

JEL Classification: D00, D04, D24, D33, D61, D63, E60, J38, J68

Suggested Citation

Chirita, Anca D., Competition Policy's Social Paradox: Are We Losing Sight of the Wood for the Trees? (September 7, 2018). European Competition Journal (2018) vol. 14. Available at SSRN: https://ssrn.com/abstract=3253029

Anca D. Chirita (Contact Author)

Durham University - Law School ( email )

Stockton Road
The Palatine Centre
Durham, County Durham DH1 3LE
United Kingdom
00441913342860 (Phone)
0044191 33 42801 (Fax)

HOME PAGE: http://www.dur.ac.uk/law/staff/?id=9664

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