Wednesday, July 20, 2011
Deutsche Telekom and Pacific Bell v. Linkline: Does Competition Law Have a Place in Regulated Industries?
Posted by D. Daniel Sokol
Martin Holterman, University of Twente - School of Management and Governance asks Deutsche Telekom and Pacific Bell v. Linkline: Does Competition Law Have a Place in Regulated Industries?
ABSTRACT: This paper provides a positive and normative discussion of the role of competition law – and competition authorities – in fostering or hampering innovation in regulated industries, specifically the telecommunications industry. I combine an analysis of recent EU and American case law with a simple economic model of multi-agency regulation and its effects on innovation, as well as a discussion of the intentions of lawmakers when the current European regulatory system was last redesigned in 2002. While ideally the choices of lawmakers should reflect careful attention to the consequences of their decisions for innovation, the 2002 EU Telecommunications package appears to be highly problematic, in that it seems to give competition law a much greater role than my model would suggest is wise.