Competition Law in Crisis: The Antitrust Response to Economic Shocks

The book "Competition Law in Crisis" argues that relaxing the competition regime is the wrong response to economic and industrial shocks, as it has both normative and positive implications for competition analysis and the role of competition law within the legal order.

Format: Paperback / softback
Length: 280 pages
Publication date: 18 August 2022
Publisher: Cambridge University Press

The European Union's (EU) competition rules have faced widespread criticism for being overly rigid, hindering effective responses to economic and industrial shocks. In response to this concern, Competition Law in Crisis delves into the examination of competition responses to crises both past and present. Through a comprehensive analysis that spans the response of UK and EU competition authorities to the economic and commercial fallout of the 2008 financial crisis, the COVID-19 pandemic, and potential responses to the climate crisis within the context of post-Brexit British industrial policy, the book makes a compelling argument that relaxing the competition regime is precisely the wrong approach.

The rigidity of competition rules in the UK and EU has far-reaching implications not only for the methodology employed in competition analysis but also for the role of competition law within the legal frameworks of both jurisdictions. The book explores these implications in depth, shedding light on the ways in which the competition rules have shaped the way businesses operate and interact in the EU.

One of the key findings of the book is that the rigidity of competition rules has helped to promote efficiency and innovation in the EU economy. By imposing strict regulations and ensuring fair competition, the rules have encouraged companies to strive for better products, services, and prices, leading to increased consumer welfare and economic growth. However, the book also acknowledges that the rigidity of competition rules can have negative consequences, particularly in times of crisis.

During the 2008 financial crisis, for example, the EU's competition rules were criticized for being too strict, leading to a lack of coordination and cooperation among financial institutions. This resulted in a prolonged and severe economic downturn, with many businesses struggling to survive. Similarly, during the COVID-19 pandemic, the EU's competition rules were again criticized for being too rigid, hindering the ability of governments and businesses to respond effectively to the crisis.

The book argues that relaxing the competition regime is not the solution to these challenges. Instead, it suggests that competition authorities should be given more flexibility to respond to crises in a way that is tailored to the specific circumstances at hand. This could involve measures such as temporary exemptions from competition rules, coordination between competition authorities, and the use of public policy tools to support businesses during times of crisis.

In conclusion, Competition Law in Crisis provides a valuable contribution to the ongoing debate about the role of competition rules in the EU. By challenging the notion that the rules are overly rigid and inhibiting effective responses to crises, the book offers a compelling argument for a more flexible and responsive approach to competition policy. The book's findings and recommendations will be of interest to policymakers, businesses, and scholars alike, as they seek to navigate the complex challenges of the modern economy.

Weight: 396g
ISBN-13: 9781108983990