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European competition policy modernization: From notifications to legal exception

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  • Loss, Frederic
  • Malavolti-Grimal, Estelle
  • Verge, Thibaud
  • Berges-Sennou, Fabian

Abstract

Council Regulation (EC) 1/2003 came into force on the 1st of May 2004 replacing themandatory notification of agreements between firms by a regime of ex post monitoring.This paper provides a theoretical justification for this shift based on the competitionauthority's accuracy of judgement. We show that ex post monitoring dominates whenthe competition authority's probability of error if low enough. We also investigate thetwo other existing legal systems, i.e. block exemptions and black list, and show that theyshould be preferred when the competition authority's beliefs about the welfare impact ofthe agreements are very optimistic or very pessimistic.
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Suggested Citation

  • Loss, Frederic & Malavolti-Grimal, Estelle & Verge, Thibaud & Berges-Sennou, Fabian, 2008. "European competition policy modernization: From notifications to legal exception," European Economic Review, Elsevier, vol. 52(1), pages 77-98, January.
    • Handle: RePEc:eee:eecrev:v:52:y:2008:i:1:p:77-98
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    Citations

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    Cited by:

    1. Thibaud Vergé & Estelle Malavolti-Grimal & Frédéric Loss, 2007. "Comment décentraliser la politique européenne de concurrence ?," Économie et Prévision, Programme National Persée, vol. 178(2), pages 115-124.
    2. Andreea Cosnita & Jean-Philippe Tropeano, 2006. "On the effective design of the efficiency defence," Cahiers de la Maison des Sciences Economiques v06030, Université Panthéon-Sorbonne (Paris 1).
    3. Dzmitry Bartalevich, 2017. "EU competition policy and U.S. antitrust: a comparative analysis," European Journal of Law and Economics, Springer, vol. 44(1), pages 91-112, August.
    4. Fatih Cemil Ozbugday, 2013. "Individual Exemption Applications and Their Assessment: Lessons from the Competition Law Change in the Netherlands during the 1990s," Business and Management Research, Business and Management Research, Sciedu Press, vol. 2(4), pages 148-164, December.
    5. Christian Growitsch & Nicole Nulsch & Margarethe Rammerstorfer, 2012. "Preventing innovative cooperations: the legal exemptions unintended side effect," European Journal of Law and Economics, Springer, vol. 33(1), pages 1-22, February.
    6. Andreea Cosnita‐Langlais & Jean‐Philippe Tropeano, 2023. "Merger selection, evidence provision, and the timing of merger control," Bulletin of Economic Research, Wiley Blackwell, vol. 75(1), pages 209-222, January.
    7. Tropeano, Jean-Philippe, 2020. "Ex ante or Ex post? When the timing of merger assessment is up to the merging firms," Information Economics and Policy, Elsevier, vol. 52(C).
    8. Moritz Birgit & Becker Martin & Schmidtchen Dieter, 2018. "Measuring the Deterrent Effect of European Cartel Law Enforcement," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(3), pages 1-27, July.
    9. Will, Birgit E. & Schmidtchen, Dieter, 2008. "Fighting cartels: some economics of council regulation (EC) 1/2003," CSLE Discussion Paper Series 2008-02, Saarland University, CSLE - Center for the Study of Law and Economics.
    10. Andreea Cosnita-Langlais & Jean-Philippe Tropeano, 2013. "Ex post or ex ante? On the optimal timing of merger control," Working Papers hal-04141196, HAL.
    11. Cosnita-Langlais, Andreea & Tropeano, Jean-Philippe, 2012. "Do remedies affect the efficiency defense? An optimal merger-control analysis," International Journal of Industrial Organization, Elsevier, vol. 30(1), pages 58-66.
    12. Ottaviani, Marco & Wickelgren, Abraham L., 2011. "Ex ante or ex post competition policy? A progress report," International Journal of Industrial Organization, Elsevier, vol. 29(3), pages 356-359, May.

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    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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