Approaching the theme from an antitrust perspective and focusing on telecommunications and television broadcasting, this volume examines how traditional European competition law doctrines and principles can be applied to this converging sector. The application of antitrust rules to the communications sector is often one of the most controversial areas of law and policy. The shift towards a more competition law oriented form of regulation is one of the main principles inspiring the recent reform of European sectorial regulation enshrined in the 2002 Electronic Communication Package. The Package was adopted in 2002 and is in the process of being implemented throughout the Union. This monograph provides a detailed description of the new regulatory package and highlights the interplay between regulatory provisions and EC competition law. It then follows the pattern of a typical antitrust analysis containing chapters on the definition of relevant market in the sector and various forms of abuses of market power. The book also critically examines the Commission's practice and policy in the field of merger control and considers its relationship with wider regulatory policies. Finally it analyses the sector from the perspective of the 'European' public interest and the changed nature of communications as a public service.
The most important book on antitrust ever written. It shows how antitrust suits adversely affect the consumer by encouraging a costly form of protection for inefficient and uncompetitive small businesses.
With the rise of digital platforms and the natural tendency of markets involving platforms to become concentrated, competition authorities and courts are more frequently in a position to investigate and decide merger and abuse cases that involve platforms. This report provides guidance on how to define markets and on how to assess market power when dealing with two-sided platforms. DEFINITION Competition authorities and courts are well advised to uniformly use a multi-markets approach when defining markets in the context of two-sided platforms. The multi-markets approach is the more flexible instrument compared to the competing single-market approach that defines a single market for both sides of a platform, as the former naturally accounts for different substitution possibilities by the user groups on the two sides of the platform. While one might think of conditions under which a single-market approach could be feasible, the necessary conditions are so severe that it would only be applicable under rare circumstances. To fully appreciate business activities in platform markets from a competition law point of view, and to do justice to competition law’s purpose, which is to protect consumer welfare, the legal concept of a “market” should not be interpreted as requiring a price to be paid by one party to the other. It is not sufficient to consider the activities on the “unpaid side” of the platform only indirectly by way of including them in the competition law analysis of the “paid side” of the platform. Such an approach would exclude certain activities and ensuing positive or negative effects on consumer welfare altogether from the radar of competition law. Instead, competition practice should recognize straightforwardly that there can be “markets” for products offered free of charge, i.e. without monetary consideration by those who receive the product. ASSESSMENT The application of competition law often requires an assessment of market power. Using market shares as indicators of market power, in addition to all the difficulties in standard markets, raises further issues for two-sided platforms. When calculating revenue shares, the only reasonable option is to use the sum of revenues on all sides of the platform. Then, such shares should not be interpreted as market shares as they are aggregated over two interdependent markets. Large revenue shares appear to be a meaningful indicator of market power if all undertakings under consideration serve the same sides. However, they are often not meaningful if undertakings active in the relevant markets follow different business models. Given potentially strong cross-group external effects, market shares are less apt in the context of two-sided platforms to indicate market power (or the lack of it). Barriers to entry are at the core of persistent market power and, thus, the entrenchment of incumbent platforms. They deserve careful examination by competition authorities. Barriers to entry may arise due to users’ coordination failure in the presence of network effect. On two-sided platforms, users on both sides of the market have to coordinate their expectations. Barriers to entry are more likely to be present if an industry does not attract new users and if it does not undergo major technological change. Switching costs and network effects may go hand in hand: consumer switching costs sometimes depend on the number of platform users and, in this case, barriers to entry from consumer switching costs increase with platform size. Since market power is related to barriers to entry, the absence of entry attempts may be seen as an indication of market power. However, entry threats may arise from firms offering quite different services, as long as they provide a new home for users’ attention and needs.
Regulation of the media has traditionally been premised upon claims of 'the public interest', yet the term itself remains contested and generally ill defined. In the context of technological development and convergence, as well as corporate conglomeration, traditional 'public service' values in British broadcasting are challenged by market values. With such ongoing trends continuing apace, regulators must increasingly justify their interventions.The communication industries' commercialisation and privatisation pose a fundamental threat to democratic values. Media Regulation, Public Interest and the Law argues that regulators will only successfully protect such values if claims associated with 'citizenship' are recognised as the rationale and objective for the regulatory endeavour. While such themes are central to the book, this second edition has been substantially revised and updated, to take account of matters such as European Directives, the UK's Communications Act 2003, the process of reviewing the BBC's Charter, and relevant aspects of the reform of general competition law.Key Features*Identifies and examines the rationales underlying media regulation and the current challenges to them.*Considers fully the actual and potential utility of legal mechanisms and principles in the design and activities of regulatory institutions.*Fully updated to take account of the European Union's 2002 New Regulatory Framework and the UK's Communications Act 2003.*Accessible to a wide readership in media studies, journalism, broadcasting and law.Praise for the First Edition"e;A detailed and critical assessment of the problems and confusions of recent media regulation in the UK including digital television franchising and the Broadcasting Complaints Commission... it is well organised, and should be a useful resource for more advanced students and academics...for updating the public regulation case with vigour and clarity this book is to be welcomed."e;THES
This fascinating book examines and offers critical comments on the new 'significant market power'-regime, as put into place by the 2003 European regulatory framework on electronic communications networks and services. An overview of this regime. Its characteristics, guiding principles, and procedures is provided, using the mobile sector as a case study. The authors give a clear and comprehensive presentation of the new SMP-procedure that may lead to the imposition of remedies on undertakings with significant market power. The book also contains an analysis of all available European Commission comments on the notifications of draft measures by national regulatory authorities, for mobile as well as other markets. Addressing pressing issues, in view of the implementation of the new regulatory framework, this book is a useful working instrument for everyone who is active in the electronic communications sector including practicing lawyers, firms in the electronic communications sector, regulatory authorities, academics and policymakers throughout Europe.
Over the last decade, the European Union has undertaken major market-opening reforms in the area of network industries. The liberalization process has now been completed in the air transport and electronic communications sectors and has achieved considerable progress in other network industries, such as postal services, energy (electricity and gas), and rail transport. Creating competition in network industries is not an easy matter, however. Because they benefit from certain advantages such as a large initial market share and control of essential facilities, incumbents typically retain substantial market power in a number of relevant markets and may even use their position to prevent others from engineering such markets. Controlling market power is thus one of a number of key concerns in network industries. It can be achieved in two main ways; either through the adoption and implementation of sector-specific rules or through the application of competition rules. There are advantages and disadvantages to both options, but it is a combination of the two that generally prevents incumbents from abusing their market power in liberalized markets. Competition law and sector-specific regulation provide for the application of remedies on incumbents or other operators holding significant market power. Such remedies are either structural or a behavioural. In some occasions they will apply ex ante, while in others ex post. This book comprises a collection of outstanding essays dealing with the complex legal and economic issues raised by remedies in network industries. While some of these essays analyse remedies from a generic point of view, others focus on specific remedies applied specifically in particular sectors. The sectors covered in this volume include electronic communications, postal services, energy (electricity and gas), and air transport. The final paper also presents a discussion of the United States approach to remedies in network industries. The essays comprised in this book have been written by leading academics (lawyers and economists), as well as private practitioners.
Competition Law and Policy in the EU --Article 101(1) --Article 101(3) --Market Definition --Cartels --Non-Covert Horizontal Cooperation --Vertical Agreements Affecting Distribution or Supply --Merger Control --Intellectual Property Rights --Article 102 --The Competition Rules and the Acts of Member States --Sectoral Regimes --Enforcement and Procedure --Fines for Substantive Infringements --The Enforcement of the Competition Rules by National Competition Authorities --Litigating Infringements in National Courts --State Aids.
Competition policies have long been based on a scholarly tradition focused on static models and static analysis of industrial organisation. However, recent developments in industrial organisation literature have led to significant advances, moving beyond traditional static models and a preoccupation with price competition, to consider the organisation of industries in a dynamic context. This is especially important in the field of information and communication technology (ICT) network industries where competition centres on network effects, innovation and intellectual property rights, and where the key driver of consumer benefit is technological progress. Consequently, when an antitrust intervention is contemplated, a number of considerations that arise out of the specific nature of the ICT sector have to be taken into account to ensure improved consumer welfare. This book considers the adequacy of existing EU competition policy in the area of the ICT industries in the light of the findings of modern economic theory. Particular attention is given to the implications of these dynamic markets for the competitive assessment and treatment of the most common competitive harms in this area, such as non-price predatory practices, tying and bundling, co-operative standard setting, platform joint ventures and co-operative R&D.
An in-depth account of EU policies in the area of public service broadcasting, focusing mainly on the application of the European State aid rules. The book discusses when, how and with what impact the European Commission deals with public service broadcasting.
The Yearbook of Consumer Law provides a valuable outlet for high quality scholarly work which tracks developments in the consumer law field with a domestic, regional and international dimension. The 2009 volume presents a range of peer-reviewed scholarly articles, analytical in approach and focusing on specific areas of consumer law such as credit, consumer redress and the impact of the European Union on consumer law. The book also includes a section dedicated to significant developments during the period covered, such as key legislative developments and important court decisions. It is an essential resource for all academics and practitioners working in the areas of consumer law and policy.
