Corporate Law Competition in Europe

Abstract

The EC Treaty’s decision for protection of competition as such is based on a fundamental confidence in the benefits of a market economy. This contribution argues that this concept does not allow for a reduction to just one single aim such as consumer welfare. Competition advances a number of aims which cannot be determined in an exclusive manner. The law protects competition as such because it is deemed, by way of presumption, to have favourable effects of one sort or another. European competition law protects not only consumers, but also producers. Suppliers of goods are protected against purchaser-cartelisation. They may also invoke the prohibition provision of Art. 82 EC, which prohibits an abuse of demand-power by dominant purchasers as well. Producers have the same rights as anyone else in a market economy. In particular, they enjoy property rights. If we wish, and this seems to be the most important point, to encourage people to commit themselves to an activity on a market, we ought to protect them of expropriation.The use of modern economic techniques while applying competition law cannot be praised highly enough. However, economic theory cannot give an answer to normative questions. In a democracy with a division of powers, it is for the legislator to decide upon normative issues. In the particular context of competition policy, the EC Treaty follows an open, process-oriented approach.Please visit the website of The Journal of Interdisciplinary Economics (JIE) to obtain the printed version of this article.