Competition Authorities Research Articles

Proliferation of religious associations and local incumbency advantage: evidence from municipal elections in Turkey

ABSTRACT For two decades, the Justice and Development Party (AKP) in Turkey sustained its electoral performance at the local level. We offer and test a new mechanism that contributed to the party's success in municipal elections. We argue that patronage links with religious civil society served as an important instrument of building and sustaining local incumbency advantage. Employing a close-election regression discontinuity design, we address two questions: To what extent did religious associations proliferate in AKP-controlled municipalities? Was this civil society penetration instrumental for the party’s electoral success? Employing a close-election regression discontinuity design (RDD), we show that in districts with a small-margin AKP victory in the 2014 elections, the number of religious associations in 2016 were significantly higher than in districts where AKP lost narrowly. We also find that the AKP incumbency in 2014 in closely contested districts increased the party’s vote share in the next local elections. Our results empirically demonstrate a new channel of local incumbency advantage. Moreover, we highlight the role of civil society as an agent of clientelistic exchange in competitive authoritarian regimes.

Competition Policy in Media and Content Industry: Case Studies and Implications for Regulators

ABSTRACT This article provides an overview of some of the most high-profile mergers between major media and content corporations, both in domestic and international scope. After reviewing the market situation at the time of each merger and the concerns around potentially anti-competitive consequences, we examine the conditions under which the proposed mergers were approved. In doing so, we summarise the views competition authorities had about the proposed mergers and draw some implications for regulators and potential applicants in future mergers in the media and content industry.

Competitive Authoritarian Regimes, Securitisation Techniques and the Role of Audiences: The Case of Pakistan

The article investigates the importance of the audience (general public) in the securitisation process. It then applies the concept in the context of competitive authoritarianism using Pakistan as a case study. The article argues that similar to securitisation processes, the audience plays a significant role in the (de-) democratisation process. The article contributes to both theoretical and empirical literature on securitisation and democratisation by extending the role of the audience to the democratisation process during competitive authoritarian regimes.

The value of screening tools in cartel cases

ABSTRACT In this paper, we analyze the value of screening tests for competition authorities in cartel cases to raise red flags about possible cartels and as a deterrence on new or existing cartels. We start by looking at one of the main problems of screen tests: false positives. We show that multiple screen tests can function as a useful tool to reduce false positives. We then study the legal foundations of screen tests considering the EU competition law and build a case to use screen tests to trigger dawn raids.

Charting a way forward for the use of data science in competition enforcement and platform regulation

ABSTRACT Competition authorities and other regulators already rely on data science to monitor markets and check compliance with applicable rules. The Digital Markets Act and the Digital Services Act have made the use of data science by regulators even more relevant, given the scale and complexity of the oversight required. The existing use of data science shows that regulators are able to adapt their organizations and processes to realize the potential of using technology tools in their activities. At the same time, the use of data science poses challenges in terms of data reliability and individual privacy. Beyond involvement in specific investigations, data science also has the potential to reform the work of regulators by moving towards a more proactive form of enforcement. The sharing of data science expertise and tools between regulators deserves to be further facilitated to increase collaboration and share resources in monitoring the platform economy.

The Decentralisation of the DMA’s Enforcement System

Abstract The harmonisation of the internal market is a fundamental aspect of the EU acquis, and the Digital Markets Act (DMA) is no exception. It aims to harmonise digital markets across the Union on the basis of the concepts of contestability and fairness. The DMA is enforced through a quasi-centralised enforcement system, with the European Commission as its sole enforcer and national competition authorities (NCAs) playing a secondary and supporting role in monitoring. The EC’s centralisation of enforcement powers is key to ensuring harmonisation. This paper highlights the potential risks at the national level due to NCA involvement in the enforcement and monitoring of the DMA. While the Regulation does not need to be transposed into national law to be effective, some Member States have introduced legislation specifying which authorities are responsible for enforcement and how they should apply their powers in line with the DMA. The paper examines these legislative developments, revealing potential deviations that undermine the effective enforcement of the DMA and disrupting its current centralised enforcement system.

Spanish Competition Authority Fines Apple and Amazon for Restricting Competition in Amazon’s Marketplace

Spanish Competition Authority Fines Apple and Amazon for Restricting Competition in Amazon’s Marketplace

Price discrimination in merger review in South Africa: Implications of recent case precedent

ABSTRACT Mergers have the potential to give firms access to more data from which to draw insights about consumers. This may help firms to better discern which consumers are price insensitive or captive, or exhibit behavioural biases, that they can exploit by charging them higher prices or nudging them towards higher priced options. Based on recent case precedent, we believe that the transfer or sharing of data or techniques in mergers involving price-discriminating firms may be sufficient for meeting the requirement of merger-specificity without there needing to be an increase in market power. Recent local case precedent also provides insight into when mergers impacting on just a small group of consumers are likely to matter. It suggests that the competition authorities in the country should be more concerned where consumers are vulnerable and where access to the services/products is particularly important to this group.

Sustainability Goals vs. Competition Law: Global Trends and Challenges

The growing awareness of climate change has highlighted the need for competition law to adapt and promote sustainability. Recently, many competition authorities have been exploring ways to integrate environmental considerations into their frameworks. The significance of aligning sustainability with competition regulations has become increasingly evident. Achieving sustainability goals requires cooperation from both companies and regulators to establish and implement industry-wide objectives. The United Nations' sustainability goals and nations' commitments to sustainability will shape future development in line with the Paris Agreement. Integrating green antitrust policies with economic progress is now a key topic of global debate among regulators. The Competition Commission of India is at a critical junctureto develop a clear competition policy for sustainability and offer detailed guidance to companies to meet these goals. However, the path to a sustainable antitrust policy is fraught with challenges, including economic development, innovation, jurisdictional issues, and India’s international obligations.

Evaluating the effect of horizontal Integration strategy on performance of commercial State corporations in Kenya

This study aimed to evaluate the impact of horizontal integration on performance of Commercial State Corporations in Kenya. The study was based on positivist research philosophy. A cross-sectional correlational design was adopted as the study design. The target population was 1,026 senior managers of the Commercial State Corporations. The sample size was 99 senior managers in Commercial State Corporations. Primary data were gathered using a structured questionnaire. Collected data was analysed using descriptive data analysis techniques (Mean, Standard Deviation, Maximum and Minimum) and regression analysis. The findings of the study were presented using figures and tables. The study established a significant effect of horizontal integration strategy on financial, customers, internal business process and learning, growth and development performance of Commercial State Corporations in Kenya (? =0.536, p=0.000<0.05; ? =0.548, p=0.000<0.05;? =0.359,p=0.000<0.05;? =0.201,p=0.027<0.05). The study concluded that the horizontal integration strategy significantly improved the financial, customer, internal business process, and learning, growth, and development performance of Commercial State Corporations, supported by statistical evidence. The study recommends that Commercial State Corporations should streamline regulations to facilitate horizontal integration, ensure alignment with strategic objectives, prioritise sectors that enhance efficiency and service delivery, collaborate with competition authorities to comply with antitrust laws, and proactively address market concentration and anti-competitive concerns.

Fatigue behavior of additively manufactured 316L stainless steel: Competition between the effects of defects and microstructure

Laser Powder Bed Fusion (LPBF) process, is becoming more and more widespread in industry. The possibilities of microstructural control offered by this process are an opportunity to study the contribution of the different length scales of microstructure to the fatigue behavior. This paper is devoted to the understanding of this fatigue behavior resulting from the interactions between the process induced defects and the different polycrystal length scales. Two distinct defect − microstructure competition regimes have been identified. The first concerns microstructures containing large Lack of Fusion (LoF) defects. These LoFs drastically reduce the fatigue life, while microstructure has no influence on the fatigue strength. The second regime concerns microstructures containing small defects. A limited effect of the polycrystalline microstructure was revealed. Furthermore, this paper demonstrates that the ratio between damage initiation defect size and grain size, used in literature to describe the defect and microstructure sensitivity of fatigue strength, is not applicable over a wide range of defects and microstructures, such as obtained by additive manufacturing processes. Finally, the comparison between the fatigue behavior of different microstructure and defect features shows that producing a finer microstructure improves fatigue strength despite the presence of a significant defect population.

Cooperation between national courts and EU institutions in competition law cases

The article explores the interplay between national courts and European Union institutions in the context of competition law enforcement of rules enshrined in Articles 101 and 102 TFEU. Cooperation between national competition authorities and national courts on one hand and EU institutions on the other hand is crucial for ensuring the effective and consistent application of competition rules. The article deals with the mechanisms of this cooperation. It examines the role of the European Commission and the Court of Justice of the European Union (CJEU) in providing guidance to national competition authorities and national courts. The article underscores the importance of a cohesive approach to competition law enforcement that is applied by national institutions of the EU member states. The concept and meaning of legal security in criminal law is well defined by Professor Jadwiga Potrzeszcz who states that "legal security is a state achieved by law established in general, and in particular by means of criminal law, in which human life’s goods and interests are protected in the most comprehensive and effective possible manner (and) harmonizes properly with the most important functions of criminal law, namely with a protective function and a guarantee function." (Potrzeszcz, 2018, p. 301) In accordance with the aforementioned definition, the author aims to introduce Criminal Codes that were in effect in the territory of present-day Slovakia, shedding light on whether they were guarantees of legal security in the state or not, i.e., whether they protected "human life’s goods and interests in the most comprehensive and effective possible manner."

COVID-19 pandemic and competitive authoritarian regimes: Human rights and democracy in the Philippines and Nicaragua

How do competitive authoritarian regimes in the Global South respond to the COVID-19 pandemic? How do these policy responses facilitate human rights deterioration in societies that are already facing democratic regression during the pre-pandemic period? Examining evidence from the Philippines and Nicaragua during the COVID-19 pandemic, this article demonstrates that competitive authoritarian regimes have reinforced the deterioration of democratic processes and disregard for their human rights commitments amidst the global pandemic. First, such regimes weaponize the legal system to consolidate the powers of the chief executive and their allies. Second, such regimes systematically disregard transparency and accountability when executing state leaders’ public actions and responsibilities. Third, such regimes increasingly empower military personnel and intensify state violence at the expense of science-based approaches to crisis policies, thereby embracing militarism as an overarching orientation.

Protecting whose welfare? A document analysis of competition regulatory decisions in four jurisdictions across three harmful consumer product industries

Background and methodsCompetition regulation has a strong influence on the relative market power of firms. As such, competition regulation can complement industry-specific measures designed to address harms associated with excessive market power in harmful consumer product industries. This study aimed to examine, through a public health lens, assessments and decisions made by competition authorities in four jurisdictions (Australia, South Africa, the United States (US), and the European Union (EU)) involving three harmful consumer product industries (alcoholic beverages, soft drinks, tobacco). We analysed legal case documents, sourced from online public registers and dating back as far as the online records extended, using a narrative approach. Regulatory decisions and harms described by the authorities were inductively coded, focusing on the affected group(s) (e.g., consumers) and the nature of the harms (e.g., price increases) identified.ResultsWe identified 359 cases published by competition authorities in Australia (n = 202), South Africa (n = 44), the US (n = 27), and the EU (n = 86). Most cases (n = 239) related to mergers and acquisitions (M&As). Competition authorities in Australia, the US, and the EU were found to make many decisions oriented towards increasing the affordability and accessibility of alcohol beverages, soft drinks, and tobacco products. Such decisions were very often made despite the presence of consumption-reduction public health policies. In comparison, South Africa’s competition authorities routinely considered broader issues, including ‘Black Economic Empowerment’ and potential harms to workers.ConclusionMany of the competition regulatory decisions assessed likely facilitated the concentration of market power in the industries we explored. Nevertheless, there appears to be potential for competition regulatory frameworks to play a more prominent role in promoting and protecting the public’s health through tighter regulation of excessive market power in harmful consumer product industries.

Competition policy and agent discretion: transatlantic regulatory cooperation in the digital economy

ABSTRACT Despite a framework of bilateral agreements governing cooperation in competition policy since 1991, the European Union (EU) and United States of America (US) established a new Joint Technology Competition Policy Dialogue in 2021, which was different from previous cooperation and separate from the transatlantic Trade and Technology Council. Drawing from the principal-agent literature, this article argues that the choice to establish the new Joint Dialogue can be understood as an exercise of discretionary authority by agents in different jurisdictions with similar preferences who responded similarly to the common external factor of digitalisation. Facing new and shared challenges arising from the digital economy, the EU and US competition authorities undertook a new effort at cooperation – the Joint Dialogue – through which regulatory agents at various levels can interact, exchange information and improve enforcement in a rapidly changing business environment.

Detection mechanisms of anticompetitive agreements (cartels)

Anticompetitive agreements, particularly cartels, have harmful effects on competition. To combat this, most states have implemented strict sanctions for companies involved in cartels, with fines typically ranging from 5-10% of their turnover. Competition authorities use several mechanisms to detect cartels, but the most important are: inspections, clemency policies and analysis of information from the public procurement register. This article provides an overview of the mechanisms mentioned above and an analysis of the national legal framework, highlighting some gaps in the legislation, but also practical examples from the Republic of Moldova and the European Union.

Structure, Conduct, Performance (SCP) Approach & Fairness Principle in Business Competition Law in The Era of Digital Platforms

The emergence of digital platforms has led to disruptions that affect not only technological and economic aspects, but also legal aspects, particularly business competition law. The discourse surrounding the development of digital platforms within the context of business competition has been influenced by two major schools of thought: the Chicago School, which adopts an effeiciency approach (also known as the consumer welfare approach) , and the Harvard School, which employs the structure, conduct, and performance (SCP) approach. This article aims to scrutinize the shortcomings of the efficiency approach advocated by the Chicago School in addressing the issues related to business competition in the digital platform market. Additionally, it seeks to demonstrate how the principle of fairness, based on the competitive process approach and market strcture, can serve as a more comprehensive analytical tool for evaluating the health of competition in the market. The results show that the efficiency approach is inadequate in addressing concerns of fairness in the digital market. Responding to the context, global business competition authorities have begun to promote a fairness approach to bolster SCP approach which serves as a moral underpinning for upholding the principles of healthy business competition in the digital platform era. This article applied normative legal research methods with a conceptual approach for analysis.

The Privacy/Antitrust Curse: Insights from GDPR Application in Competition Law Proceedings

In response to the emergence of large online platforms whose business model revolves around the collection and processing of personal data, it is usually suggested that competition and data protection are synergistic, hence requiring an integrated approach. In this respect, Europe represents the testing ground for evaluating how privacy breaches may inform antitrust investigations. Indeed, the General Data Protection Regulation (GDPR) on the one side and the German Facebook antitrust decision on the other side are considered the benchmarks of this new stance aimed at linking market power and data power. This paper tests the concrete viability of such an approach, analyzing how data protection rules and principles have been applied in antitrust proceedings by the European Commission and national competition authorities. Notably, the paper aims at demonstrating the fallacy of the narrative which describes the relationship between privacy and antitrust in terms of synergy and complementarity. Furthermore, the paper maintains that the principles recently affirmed by the European Court of Justice in Meta do not appear conclusive in addressing the issue. The strategic use of privacy as a business justification to pursue anticompetitive advantages currently addressed in the numerous Apple ATT investigations indeed shows the tension between these areas of law. Therefore, rather than strengthening the antitrust enforcement against gatekeepers and their data strategies, the inclusion of privacy harms in antitrust proceedings turns out to be a potential curse for competition authorities, providing players with an opportunity for regulatory gaming to undermine the antitrust enforcement. JEL Codes: D83, K21, L12, L4

The role of economics and the quality of antitrust case assessment in China: an empirical investigation

This article empirically measures indicators capturing the role of economics in the antitrust decisions of the Competition Authorities of China from 2010 – 2021. The methodology allows that identification of the legal standards (LSs) adopted in assessing different conduct types and their evolution. The LSs are compared to their theoretically optimal level in order to deduce quality of enforcement. Comparative analysis is undertaken with published results on the role of economics for EC’s DGCOMP, UK’s CMA and Russia’s FAS. The Chinese Authorities’ enforcement record lags behind in quality that of DGCOMP and CMA in abuse of dominance cases though it is already well ahead of countries in which their modern Competition Law enforcement started at about the same time (2008), like Russia.

Perspectives to Mobile Cramming: Methods, Liability, and Potential Anti-cramming Measures

During the last few decades, the illegal practice of inserting unauthorized charges in mobile bills, “mobile cramming”, has emerged worldwide in the field of direct carrier billing. In the United States, civil and criminal aspects regarding mobile cramming have been addressed and prominently displayed in governmental investigations and notable legal cases. In Finland, the discussion on mobile cramming has focused solely on questions about the contractual liability of the parties involved. This article aims to bring clarity to the phenomenon by describing the potential cramming and anti-cramming methods, the chain of liability and the parties involved. The article also describes what courses of action have been taken by governmental officials when pursuing mobile cramming cases in Finland and the U.S. Due to the lack of case law in Finland, the issue is addressed from the perspective of the Competition and Consumer Authority. In conclusion, it is summarized that regardless of the preventive regulatory measures, the practice of mobile cramming still exists, and the crammers are finding new avenues for their operations through regulatory loopholes. Contractual liability for unauthorized charges has been acknowledged to be divided among the parties involved, but this alone is not sufficient to prevent mobile cramming in Finland. More attention needs to be paid to effective preventive measures.