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U.S. Antitrust and EU Competition Policy: Where has the Former Been, Where is the Latter Going?

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Author Info
Stephen Martin () (Department of Economics, Krannert School of Management, Purdue University)

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Abstract

The earliest U.S. antitrust laws were adopted after technological changes — most importantly, the development of a national railway network — made the U.S. political union a single economic market. They were adopted with the stated, and no doubt largely sincere, purposes of preventing collusion and strategic entry-deterring behavior. Early application of the antitrust laws relied on a rule of competition to determine whether business conduct was or was not permitted. This has evolved into an explicit evaluation of the impact of businesses practices on consumer welfare, conceived of and measured in an economic sense. EU competition policy was adopted in advance of economic integration. It differed sharply from the traditional policies of the original EC6 member states toward business behavior. It was adopted with the stated, and most likely sincere, purpose of furthering economic integration, and to this end prohibited practices that were seen as distorting competition. Early applications of competition policy, particularly in the European Coal and Steel Community, may have had perverse effects. There are indications of an evolution towards an economic performance standard in the European Union as well.

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Publisher Info
Paper provided by Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro in its series Working Papers de Economia (Economics Working Papers) with number 27.

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Length: 22 pages
Date of creation: Dec 2005
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Handle: RePEc:ave:wpaper:272005

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Related research
Keywords: US antitrust policy; EU competition policy; European Union; Economic governance; regulation;

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Find related papers by JEL classification:
L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General
L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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  1. Annette Bongardt, 2005. "Competition Policy and EU Governance," Working Papers de Economia (Economics Working Papers) 28, Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro. [Downloadable!]
  2. Alvaro Montenegro García, 2007. "Fundamentos de la Política de la Competencia," DOCUMENTOS DE ECONOMÍA 003930, UNIVERSIDAD JAVERIANA - BOGOTÁ. [Downloadable!]
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This page was last updated on 2009-11-15.


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