Addressing sustainability failures in economics and competition law : environmental externalities, consumers and quantification
(2024) p.154-175- Abstract
This contribution investigates the nexus of legal and economic dimensions in integrating sustainability enhancements into the assessment of anticompetitive agreements under Article 101(3) TFEU, particularly in light of the Commission’s recent Guidelines on Horizontal Cooperation. It is demonstrated that whilst the narrative of market failure at large, and the concept of sustainability failure specifically, find resonance with a more economic approach, they remain discordant with the current antitrust policy, predicated primarily on the pursuit of consumer welfare. Although the new Guidelines signal a shift in antitrust policy, they fall short of resolving two inherent challenges to the integration of broader sustainability concerns... (More)
This contribution investigates the nexus of legal and economic dimensions in integrating sustainability enhancements into the assessment of anticompetitive agreements under Article 101(3) TFEU, particularly in light of the Commission’s recent Guidelines on Horizontal Cooperation. It is demonstrated that whilst the narrative of market failure at large, and the concept of sustainability failure specifically, find resonance with a more economic approach, they remain discordant with the current antitrust policy, predicated primarily on the pursuit of consumer welfare. Although the new Guidelines signal a shift in antitrust policy, they fall short of resolving two inherent challenges to the integration of broader sustainability concerns within the existing analytical framework. The first challenge emanates in the broad nature of sustainability as a theoretical construct, in contrast to the narrow concept of efficiencies under Article 101(3). It is argued that whilst the overreaching category of collective benefits in the new Guidelines may subsume sustainability failures, the precise boundaries of this concept remain nebulous. The second challenge arises from antitrust law’s focus on the ‘relevant market’, requiring that any benefits must accrue to the consumers within that market. In conclusion, this contribution argue that recent developments merely offer a partial resolution to these complex dilemmas. It underscores a pressing need for further clarification and development in the policy framework to ensure that the legal assessment of sustainability enhancements within the context of antitrust law is both coherent and responsive to the multifaceted demands of contemporary markets and policies.
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- author
- Hjärtström, Max LU
- organization
- publishing date
- 2024-01-01
- type
- Chapter in Book/Report/Conference proceeding
- publication status
- published
- subject
- keywords
- 2022 HBERS, Antitrust policy, Consumer benefit, Quantification, Sustainability failures
- host publication
- Research Handbook on Sustainability and Competition Law
- pages
- 22 pages
- publisher
- Edward Elgar Publishing Ltd.
- external identifiers
-
- scopus:85217322392
- ISBN
- 9781802204650
- 9781802204667
- DOI
- 10.4337/9781802204667.00018
- language
- English
- LU publication?
- yes
- additional info
- Publisher Copyright: © The Editor and Contributing Authors Severally 2024.
- id
- 45c2c41f-90c1-43d9-b767-32dc4c0666e0
- date added to LUP
- 2025-05-05 13:24:28
- date last changed
- 2025-05-05 13:25:30
@inbook{45c2c41f-90c1-43d9-b767-32dc4c0666e0,
abstract = {{<p>This contribution investigates the nexus of legal and economic dimensions in integrating sustainability enhancements into the assessment of anticompetitive agreements under Article 101(3) TFEU, particularly in light of the Commission’s recent Guidelines on Horizontal Cooperation. It is demonstrated that whilst the narrative of market failure at large, and the concept of sustainability failure specifically, find resonance with a more economic approach, they remain discordant with the current antitrust policy, predicated primarily on the pursuit of consumer welfare. Although the new Guidelines signal a shift in antitrust policy, they fall short of resolving two inherent challenges to the integration of broader sustainability concerns within the existing analytical framework. The first challenge emanates in the broad nature of sustainability as a theoretical construct, in contrast to the narrow concept of efficiencies under Article 101(3). It is argued that whilst the overreaching category of collective benefits in the new Guidelines may subsume sustainability failures, the precise boundaries of this concept remain nebulous. The second challenge arises from antitrust law’s focus on the ‘relevant market’, requiring that any benefits must accrue to the consumers within that market. In conclusion, this contribution argue that recent developments merely offer a partial resolution to these complex dilemmas. It underscores a pressing need for further clarification and development in the policy framework to ensure that the legal assessment of sustainability enhancements within the context of antitrust law is both coherent and responsive to the multifaceted demands of contemporary markets and policies.</p>}},
author = {{Hjärtström, Max}},
booktitle = {{Research Handbook on Sustainability and Competition Law}},
isbn = {{9781802204650}},
keywords = {{2022 HBERS; Antitrust policy; Consumer benefit; Quantification; Sustainability failures}},
language = {{eng}},
month = {{01}},
pages = {{154--175}},
publisher = {{Edward Elgar Publishing Ltd.}},
title = {{Addressing sustainability failures in economics and competition law : environmental externalities, consumers and quantification}},
url = {{http://dx.doi.org/10.4337/9781802204667.00018}},
doi = {{10.4337/9781802204667.00018}},
year = {{2024}},
}