Friederiszick, Hans W. --- "Economic Analysis in EU Competition Cases" [2009] ELECD 190; in Drexl, Josef; Idot, Laurence; Monéger, Joël (eds), "Economic Theory and Competition Law" (Edward Elgar Publishing, 2009)

Book Title: Economic Theory and Competition Law

Editor(s): Drexl, Josef; Idot, Laurence; Monéger, Joël

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781847206312

Section: Chapter 1

Section Title: Economic Analysis in EU Competition Cases

Author(s): Friederiszick, Hans W.

Number of pages: 17

Extract:

1. Economic analysis in EU
competition cases
Hans W Friederiszick*

1 INTRODUCTION

Economic analysis has become an integral part of EU competition policy.
Competition policy focuses on the negative effects of a measure on compe-
tition and trade and balances these with potential positive effects. In this
way, counterfactual analysis, market definition and an effects-based analy-
sis in certain cases are the unifying themes of modern economic analysis as
it is applied to competition policy.
Economic analysis can play an important role in three different fields:
improving existing rules, analysing individual cases and ex-post analysis of
the effectiveness of the intervention. This chapter provides an overview of
how and when economic analysis can be applied in those areas, based on
some current examples. It discusses the limits and the benefits of a more
effects-based approach.


2 ECONOMIC ANALYSIS IN EU COMPETITION
POLICY

Economic analysis was marginal to EU competition policy until the late 1980s.
Since then, the importance of economic analysis has increased significantly.
The main feature of this extended reliance on economics is a reassessment of
decision making in the light of economic principles ­ with respect to both
better rules and an effects-based, case-specific analysis in some cases.


* The author is a member of the faculty of the European School of
Management and Technology (ESMT), and Managing Director of ESMT
Competition Analysis. From 2003 to 2006 he was a member of the team of the
Chief Economist at the Directorate General for Competition (DG ...