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On The Scope For The European Commission'S 2006 Fining Guidelines Underthe Legal Maximum Fine

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  • Iwan Bos
  • Maarten Pieter Schinkel

Abstract

By relating antitrust fines explicitly to the value of affected commerce, the 2006 fining guidelines reaffirm the European Commission's commitment to deterring competition law infringement. We show that the legal maximum fine specified in Article 23(2) of Regulation 1/2003 seriously constrains the Commission in reaching this objective, however. The maximum fine will be binding the calculated fine for low ratios of affected EEA commerce over total worldwide turnover. Therefore, there is little scope for the Commission to apply its new fining method effectively.

Suggested Citation

  • Iwan Bos & Maarten Pieter Schinkel, 2006. "On The Scope For The European Commission'S 2006 Fining Guidelines Underthe Legal Maximum Fine," Journal of Competition Law and Economics, Oxford University Press, vol. 2(4), pages 673-682.
    • Handle: RePEc:oup:jcomle:v:2:y:2006:i:4:p:673-682.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhl022
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    References listed on IDEAS

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    1. Connor, John M. & Bolotova, Yuliya, 2006. "Cartel overcharges: Survey and meta-analysis," International Journal of Industrial Organization, Elsevier, vol. 24(6), pages 1109-1137, November.
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    1. Vasiliki Bageri & Yannis Katsoulacos & Giancarlo Spagnolo, 2013. "The Distortive Effects of Antitrust Fines Based on Revenue," Economic Journal, Royal Economic Society, vol. 123(11), pages 545-557, November.
    2. Katsoulacos, Yannis & Motchenkova, Evgenia & Ulph, David, 2020. "Combining cartel penalties and private damage actions: The impact on cartel prices," International Journal of Industrial Organization, Elsevier, vol. 73(C).

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