Kirchner, Christian --- "Competition Policy versus Regulation: Administration versus Judiciary" [2004] ELECD 185; in Neumann, Manfred; Weigand, Jürgen (eds), "The International Handbook of Competition" (Edward Elgar Publishing, 2004)

Book Title: The International Handbook of Competition

Editor(s): Neumann, Manfred; Weigand, Jürgen

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781843760542

Section: Chapter 9

Section Title: Competition Policy versus Regulation: Administration versus Judiciary

Author(s): Kirchner, Christian

Number of pages: 15

Extract:

9 Competition policy vs. regulation:
administration vs. judiciary
Christian Kirchner



1 Introduction
The relationship between competition policy and regulation has not always
been clear. Conventional wisdom regards both activities as non-competing, or
complementary. However, rivalry between competition policy and regulation
shows up in certain phases during the deregulation of an industry or the
transformation of former state monopolies into competitive markets. In
practice, the conflict between competition policy and regulation often arises
as one between competition authorities and sector-specific regulators.
In order to better understand the complex interdependence and
substitution processes between competition policy and regulation, this
chapter analyzes their relationship. We first look at the relationship
between competition policy and regulation from an industrial organization
perspective and then develop a new perspective resting on an institutional
economics approach.
We define competition policy in the given context as the application
and enforcement of competition law by competition authorities and law
courts. Regulation will be understood as sector-specific regulation enforced
by regulatory authorities and law courts. Whereas competition policy
constitutes a branch of economic policy applicable to all sectors, regulation
concerns specific industries.
We consider that administration plays a more prominent role in the case
of regulation, while the judiciary is more decisive when it comes to the
application and enforcement of competition law. Conclusions on the proper
relationship between competition policy and regulation cannot be derived
solely on grounds of different enforcement mechanisms.

2 Competition policy and regulation: non-competing or competing
institutional devices?

2.1 Introduction
...