Interlocking Directorates in Europe – An Enforcement Gap?

Abstract

This chapter highlights the potential anti-competitive risks raised by interlocking directorates between competitors. The anti-competitive effects stem both from the increased ability to collude enabled by interlocks, as well as the reduced incentive to compete fiercely on markets characterised with numerous social and corporate links. In addition, this chapter touches upon the questions of conflict of interest and problems of directors’ independence that are inherent when a board member sits on the boards of two competing companies. The main claim of this chapter is that there may be an enforcement gap around anti-competitive effects of interlocking directorates in Europe.

Keywords: Interlocking directorates, Antitrust, Competition Law, Directors, Corporate networks

JEL Classification: K21, K22