Vad är skyddsintresset bakom artikel 82 - konsumenterna eller konkurrenterna?
(2008)Department of Law
- Abstract
- The existence of workable competition in the marketplace is a fundamental part of a free market economy. Competition is believed to bring many positive effects to both society and the marketplace by ensuring that products and services held in demand are placed on the market at a price that consumers are willing to pay. Furthermore, competition results in product efficiency. Competing companies are constantly aiming to lower their prices, as their positioning on price is a major marketing device, which could determine their chances to stay in that marketplace. Another benefit of workable competition is that it brings a dynamic to the marketplace and stimulates the product development - since the producers will constantly develop and... (More)
- The existence of workable competition in the marketplace is a fundamental part of a free market economy. Competition is believed to bring many positive effects to both society and the marketplace by ensuring that products and services held in demand are placed on the market at a price that consumers are willing to pay. Furthermore, competition results in product efficiency. Competing companies are constantly aiming to lower their prices, as their positioning on price is a major marketing device, which could determine their chances to stay in that marketplace. Another benefit of workable competition is that it brings a dynamic to the marketplace and stimulates the product development - since the producers will constantly develop and invest in new products or services as a result of the competition, and in a bid to win the consumers' business. Competition law aims to protect the competition in a free market economy by promoting competition, which will be effective and undistorted. This enables the public to receive as many benefits from the competition as is possible. The key objective of the EC Competition policy is said to be the protection of competition, since it facilitates the integration within the common market and also enables the consumers to benefit from the workable competition. One of the most fundamental rules regarding competition law in the EC is Article 82 EC-treaty, which outlaws dominant companies from abusing their strong position in the market, since this can result in hindering the maintenance of workable competition and makes the market ineffective. During recent years there has been criticism as regards how Article 82 is applied by the Commission and the European Courts. A number of people think that too much emphasis is put in the protection of competitors rather than competition itself - even in cases where the dominant undertaking's conduct might benefit consumers and thereby undermine the EC competition policy. However, some of the criticism has been justified. The Commission and the Courts have, when applying Article 82 EC-Treaty, shown clear features of unpredictability and there has been a tendency among the authorities to outlaw some of the actions made by a dominant company - without looking into its effect on the competition, or to consumers. Moreover, companies have been given the burden of having to prove that their actions are not anti-competitive. In addition to this, the Commission and the Courts have often stated that dominant companies have a special responsibility not to let their conduct impair the undistorted competition within the common market. As a result of the criticism, the Commission undertook a review of the policy behind Article 82 and published a Discussion paper, to explain and declare the key objectives behind the Article. In the Discussion paper, the Commission stated that it was the protection of the competition and the consumer welfare that was its key concern, and that the Commission aimed to start applying a more effect based approach when applying article 82, to ensure that it is competition, and not competitors, that is protected. At the time of the Commission's review the Microsoft case was also taking place. This case is considered to be a landmark, not only because of the extremely high fine imposed or the monopolistic position the undertaking was considered to have, but because the Commission and the CFI were given a chance to apply their new policy. During the Microsoft case, the Commission and the CFI applied the competition policy that was expressed in the Discussion paper, meaning that the protection of the competition was put first, as a way to maintain a high degree of consumer welfare. Microsoft was found to have abused its dominant position on the common market by devoting itself to anti-competitive actions which had a detrimental effect on other undertakings' incentives to innovate, whilst having an excluding effect on the market which decreased the competition and therefore the range of products on the market. These factors combined were also deemed to have a detrimental effect on the consumers. On the basis of this, the conclusion when it comes to Article 82, is that it aims to protect the consumers and not the competitors, even if there has been a great uncertainty about this before. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1559909
- author
- Lundin, Sara
- supervisor
- organization
- year
- 2008
- type
- H3 - Professional qualifications (4 Years - )
- subject
- keywords
- Konkurrensrätt, EG-rätt
- language
- Swedish
- id
- 1559909
- date added to LUP
- 2010-03-08 15:55:24
- date last changed
- 2010-03-08 15:55:24
@misc{1559909,
abstract = {{The existence of workable competition in the marketplace is a fundamental part of a free market economy. Competition is believed to bring many positive effects to both society and the marketplace by ensuring that products and services held in demand are placed on the market at a price that consumers are willing to pay. Furthermore, competition results in product efficiency. Competing companies are constantly aiming to lower their prices, as their positioning on price is a major marketing device, which could determine their chances to stay in that marketplace. Another benefit of workable competition is that it brings a dynamic to the marketplace and stimulates the product development - since the producers will constantly develop and invest in new products or services as a result of the competition, and in a bid to win the consumers' business. Competition law aims to protect the competition in a free market economy by promoting competition, which will be effective and undistorted. This enables the public to receive as many benefits from the competition as is possible. The key objective of the EC Competition policy is said to be the protection of competition, since it facilitates the integration within the common market and also enables the consumers to benefit from the workable competition. One of the most fundamental rules regarding competition law in the EC is Article 82 EC-treaty, which outlaws dominant companies from abusing their strong position in the market, since this can result in hindering the maintenance of workable competition and makes the market ineffective. During recent years there has been criticism as regards how Article 82 is applied by the Commission and the European Courts. A number of people think that too much emphasis is put in the protection of competitors rather than competition itself - even in cases where the dominant undertaking's conduct might benefit consumers and thereby undermine the EC competition policy. However, some of the criticism has been justified. The Commission and the Courts have, when applying Article 82 EC-Treaty, shown clear features of unpredictability and there has been a tendency among the authorities to outlaw some of the actions made by a dominant company - without looking into its effect on the competition, or to consumers. Moreover, companies have been given the burden of having to prove that their actions are not anti-competitive. In addition to this, the Commission and the Courts have often stated that dominant companies have a special responsibility not to let their conduct impair the undistorted competition within the common market. As a result of the criticism, the Commission undertook a review of the policy behind Article 82 and published a Discussion paper, to explain and declare the key objectives behind the Article. In the Discussion paper, the Commission stated that it was the protection of the competition and the consumer welfare that was its key concern, and that the Commission aimed to start applying a more effect based approach when applying article 82, to ensure that it is competition, and not competitors, that is protected. At the time of the Commission's review the Microsoft case was also taking place. This case is considered to be a landmark, not only because of the extremely high fine imposed or the monopolistic position the undertaking was considered to have, but because the Commission and the CFI were given a chance to apply their new policy. During the Microsoft case, the Commission and the CFI applied the competition policy that was expressed in the Discussion paper, meaning that the protection of the competition was put first, as a way to maintain a high degree of consumer welfare. Microsoft was found to have abused its dominant position on the common market by devoting itself to anti-competitive actions which had a detrimental effect on other undertakings' incentives to innovate, whilst having an excluding effect on the market which decreased the competition and therefore the range of products on the market. These factors combined were also deemed to have a detrimental effect on the consumers. On the basis of this, the conclusion when it comes to Article 82, is that it aims to protect the consumers and not the competitors, even if there has been a great uncertainty about this before.}},
author = {{Lundin, Sara}},
language = {{swe}},
note = {{Student Paper}},
title = {{Vad är skyddsintresset bakom artikel 82 - konsumenterna eller konkurrenterna?}},
year = {{2008}},
}