panelists: milan brouček - chief economist , office for the protection of competition
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Second Annual Conference on Competition Enforcement in the Recently Acceded Member States , Brno , 23 April 20 10 Economic analysis in competition law. Panelists: Milan Brouček - Chief Economist , Office for the Protection of Competition - PowerPoint PPT PresentationTRANSCRIPT
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Second Annual Conference on Competition Enforcement in the Recently Acceded Member States, Brno, 23 April 2010
Economic analysis in competition lawPanelists:Milan Brouček - Chief Economist, Office for the Protection of CompetitionGergely Csorba - Chief Economist, Hungarian Competition Authority (GVH)Josef Bejček – Professor at Faculty of Law, Masaryk University in Brno
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More economic approachin competition policy:Latest trends in the Czech Republic
Milan BroučekChief Economist
Second Annual Conference on Competition Enforcement in the Recently Acceded Member States, Brno, 23 April 2010
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Opening•the role of economics/economists in competition
policy:o economics explains how markets work (models of
competition, firm behaviour, consumer behaviour)o economists have developed quantitative techniques
•role in particular areas of competition policy?•economists can quantify the „counterfactual“:
– „what if“ situation for mergers– „but for“ situation for dominance and cartels
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I. More economic approach• conceptual issue - change in approach (effect-based
approach vs. form-based approach)• priority: assess effect (actual,likely), clear theory of
harm• individual approach to cases• necessity to apply analytical methods• greater demand on economic data• possible objective necessity and efficiencies
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I. More economic approach• key role of economic analysis in definition of relevant
markets:– SSNIP test
• unavoidable: price-based conduct• use of quantitative techniques – no reason for different
approach in mergers and antitrust
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II. Recent development - EC
• pressure from courts (CFI, ECJ)• apparent shift to more economic approach (MEA):
o horizontal merger guidelines (2004)o non-horizontal merger guidelines (2008)o art. 82 (102) reform – guidance (2009)o current art. 81 (101) reform
• giving priority to assess effects of merger/conducteffect-based approach (EBA)
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III. Recent development - Office•background:
o no pressure from courtso very low pressure from undertakingso internal decision to apply MEA/EBA
•main objective:o increasing efficiency of competition policy
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III. Recent development – Office• advantages:
o harmonization with some other key jurisdictions o too formalistic approach eliminatedo competition on merits recognized and permitted
• risks:o burden too high?o prioritization? o response from courts?
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III. Recent development – Office•chief economist’s unit established (revived) - consists of
economists, financial analyst, statistician2009: 4 members, 2010: 7 members
•part of Competition Section within the Office:o engaged in: mergers, abuse of dominance, cartels,
vertical restraintso not engaged in: abuse of buyer power („retail chains“), state aid
•role of chief economist unit•part of Devil’s Advocates’ panel
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IV. Office´s experience since 2009•mainly in abuse of dominance area:
o possible margin squeeze/bundling in ADSLo possible predatory pricing in bus transportationo possible predatory pricing in energy sectoro possible margin squeeze in energy sectoro possible refusal to deal in financial sector
•mergers:o influence of financial crisis?o recently two candidates for econometrics (unfortunately
not realized)
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IV. Office´s experience since 2009
•analytical materials (exchange of information, RPM, art. 82 (102) reform, definition of relevant markets …)
•personal view: chief economist unit had/has significant impact in-house
•key task - data collection:– looking for optimal way (learning by doing)
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V. Office´s further plans (visions)
•finish „first more economic“ cases•guidelines/best practices on applying MEA•cartels detection (screening markets)•using consumer survey•quantifying antitrust damages (i.a. to endorse
private enforcement)
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Conclusions
•MEA: right direction of competition policy•Office has reflected/followed that direction•but:
– prioritization (econometrics)– conjunction: legal and qualitative assessment
•wish: economic analysis to be a standard tool used by Office, undertakings and courts…