Competition Law and Financial Crisis

Abstract

Competition legislation contemplates certain exceptions to its main aim of promoting and ensuring competition by curtailing anticompetitive behaviour. These exceptions are rare and when allowed are usually for the benefit of consumers. The aim of this article is to provide a legal analysis of the exceptions to competition law and policy, particularly in the context of a financial crisis. An analysis on how legal restrictions can be slackened for greater benefit - which implies setting aside long-standing principles of law - is provided. Of particular interest is the bank merger activity during periods of financial distress, which can be seen as an example of a more lenient approach towards competition policy.