In this report, Oxera has developed an analytical framework for the ex post assessment of the effect of state aid on competition. This framework is consistent with merger and antitrust assessments but tailored to the specificities of state aid. Although it focuses on ex post impact assessments of state aid, most elements of it can also be used for ex ante evaluation. We apply this framework to four cases where the Commission authorised the granting of aid to individual companies. The case studies were selected in order to cover a diversity of aid objectives, economic sectors and amounts of aid. The four cases selected are: regional aid to an airport in the UK; R&D&I aid to a French substrates manufacturer; SGEI aid to an Italian postal operator; environmental aid to a French starch producer. Following the four case studies, we show that the impact of the aid could vary according to the relative amount of the aid, the breadth of the aid, and frequency of the aid. We also conclude that usual techniques in antitrust and merger assessments can be used in ex post assessments. However, there are some specific challenges regarding market definition, counterfactual analysis, and data availability.
Competition authorities are increasingly interested in understanding the impact of their activities on markets and consumers. The goal is to improve competition policy rules and decision-making practices and to get robust evidence on the benefits of competition and competition policy for society as a whole. Discussions with competition authorities, practitioners and academics have shown the need to take stock of the experience gained in this field by the European Commission and to present it in an easily accessible way. The studies collected in this volume – prepared by senior Commission officials and competition policy experts – range from the ex post evaluation of specific policy interventions to the assessment of the broader impact of competition policy. The issues and topics examined include the following: objectives and scope of evaluations by the European Commission; description of counterfactual evaluation techniques used; conditions for a successful ex post evaluation of a competition policy intervention; a wide selection of individual cases covering a variety of economic sectors; applications in merger control, antitrust and State aid; direct benefits of competition policy interventions for consumers; deterrent effects of such interventions on market participants; and macroeconomic outcomes in terms of job creation, productivity and GDP growth. This matchless book assembles within a single volume all that is needed for competition policy analysts and practitioners to undertake ex post economic evaluations. While its collection of state-of-the-art ex post evaluation studies has a clear value for competition authorities, it is sure to be welcomed as well by competition law practitioners in the private sector, who will greatly appreciate the effort made to cast a critical eye on decisions taken in the past. Moreover, it allows for addressing some of the new challenges facing competition policymakers. Fabienne Ilzkovitz is Principal Advisor responsible for the economic evaluation of competition policy within the Directorate-General for Competition of the European Commission, and since 2014, she has coordinated various ex post evaluation projects in the Directorate-General. She is also Associate Professor of Economics in the Solvay Brussels School of Economics and Management at the Université Libre de Bruxelles, Belgium. Adriaan Dierx is Senior Expert on ex post economic evaluation within the Directorate-General for Competition of the European Commission. He has managed a number of studies aimed at assessing the economic impact of the European Commission’s competition policy interventions.
This book analyses the recent modernisation of EU State aid law from various perspectives, and considers both substantive and procedural aspects. It also discusses the reasons for, and the goals and future implications of the modernisation programme, including the evolution of the concept of State aid. The ambitious reform programme was launched in 2012 and has now been almost fully implemented by virtue of the adoption of new rules of procedure in July 2013, and exemption in June 2014. The book highlights the main aspects of this sector reform, which include the Commission’s change of attitude towards so-called positive aid, i.e. those able to promote economic growth, and the intention to focus on matters of greater systematic extent. These objectives also imply a third aspect: increasing the intensity of the control powers conferred on the Commission with regard to that aid that prove to be harmful to competition and the internal market. The book also examines the greater responsibility given to States for self-assessment of their economic policy measures, and explores the resulting impact on, and challenges posed to the administrations of the Member States. The book’s second part is devoted to the application State aid rules in the area of services of general economic interest, with a special focus on aid in the field of social health and infrastructure.
Introduction - The Law and Economics of EU State Aid Control /Vincent Verouden and Philipp Werner --Advantage /Giuseppe Conte and James Kavanagh --State Measure /Rein Wesseling and Marieke Bredenoord-Spoek --Selectivity /Michael Honoré --Distortion of Competition and Effect on Trade /Jacques Derenne and Vincent Verouden --Compatibility of Aid - General Introduction /Leigh Hancher and Phedon Nicolaides --General Block Exemption Regulation /Koert van Buiren and Alexander Rose --Ex Post Evaluation of Aid /Xavier Boutin and Inkalotta Nuotio-Osazee --Research, Development and Innovation Aid /Pascal Belmin and Hans Zenger --Regional Aid /Hans W. Friederiszick and Massimo Merola --Risk Finance Aid /Isabel Taylor and Albert Bravo-Biosca --Rescue and Restructuring Aid /Ulrich Soltész and Bruce Lyons --Services of General Economic Interest /Philipp Werner and Vincent Verouden --Infrastructure Aid /Penelope Papandropoulos and Elisabetta Righini --State Aid in the Broadband Sector /Hein Hobbelen and Oliver Stehmann --State Aid in the Postal Services Sector /Alessandra Fratini and Khaled Diaw --Transport Aid /Udo Woll and Andrew Meaney --Energy and Environmental Aid /Kai Struckmann and Geza Sapi --Aid to Broadcasting, Culture and Sport /Christine Gerlach and Dimitrios Pikios --Aid in the Banking Sector /Stan Maes and Stephen Mavroghenis --State Aid and Privatisation /Andreas von Bonin and Elisabeth Häringer.
The recent State Aid Modernization has decentralized the enforcement of State aid law. In particular, under the General Block Exemption Regulation a number of aid schemes do not require the preventive “check” by the European Commission, while national courts play a growing role in private enforcement of State aid law. This insightful book analyzes the enforcement of State aid law in the aftermath of the State Aid Modernization, identifying a number of emerging trends at the national and EU level.
By their nature, remedies are central to competition law enforcement and represent the yardstick against which the efficiency of the overall system can be measured. Yet very rarely have remedies been treated in a horizontal and comprehensive manner from the combined perspectives of substance, process and policy. The present volume, developed in partnership with the College of Europe’s Global Competition Law Centre (GCLC), provides coherent, practical, and authoritative commentaries by leading experts from the GCLC’s incomparable network. The contributions – originally presented at the 2019 GCLC annual conference – examine remedies to assess the overall effectiveness of competition law enforcement in merger, antitrust and State aid matters. The overall topic is presented under five headings: objectives and limitations of remedies; types of remedies in competition law enforcement; implementation and process; ex post assessment of remedies and policy lessons; and national and international approaches. The high-profile and wide-ranging group of authors includes the Director-General of the European Commission’s competition department, lawyers from major international firms, and well-known economists and academics specialising in competition law. With a sharp focus on how to make competition rules work well in today’s digital environment, this systematic and coherent analysis illuminates an issue that we need to fully grasp and understand in order to make sense of competition policy, law and enforcement in the years and decades to come.
This book provides the first comprehensive account of the New EU Competition Law: an emerging understanding of the discipline that breaks from the consensus of the early 2000s and that ventures into uncharted territories. Competition law has undergone fundamental transformations in the past decade, from the rise and fall of the 'effects-based approach' to the challenge of Big Tech and the growing interaction with intellectual property. Making sense of these changes and fully grasping their implications can be difficult. The book discusses the shift from traditional enforcement in the industrial era to the sort of intervention that a knowledge-based economy demands. It presents the changes that the field is undergoing (policy priorities, relationship with regulation and intangible assets, move away from efficiency and consumer welfare) and illustrates them by reference to the most significant developments. The analysis includes an up-to-date evaluation of the Digital Markets Act and addresses the application of EU competition law to key areas, including energy, pharma, telecommunications and online platforms. Conceived as a 'modular' book, practitioners and advanced students will find it useful as a map to navigate the underlying trends and as an in-depth dissection of the key case law and administrative practice of the past decade.
This edited volume addresses the importance, implications, practices, problems and the role of economic evidence in EU competition law. It includes contributions on the use of the economic approach in the application and enforcement of EU competition law in different EU countries, candidate member states and third countries.
The importance of ex ante and ex post impact assessment in streamlining the regulatory environment and improving the legislative process has been stressed by scholars and testified to by international best practices. The potential benefits of regulatory impact assessment are also being rediscovered by EU officials, who lose no chance to recall that the Commission's ambitious "growth and jobs" strategy heavily depends on the pervasiveness of impact assessment in the regulatory process at EU and member state level. This study, conceived for scholars and policymakers, provides an overview of the state of the art on impact assessment. It focuses on the latest developments in the United States, UK, and EU, and presents a scorecard analysis of the Commission's extended impact assessments. The author concludes with a road map for improving the transparency, efficiency, and effectiveness of the EU Integrated Impact Assessment model.
