Tuesday, July 23, 2013
Posted by D. Daniel Sokol
Alexis Walckiers (Belgian Competition Authority) describes the shift From the Prosecution of Infringements to a Systematic Analysis of Markets.
ABSTRACT: The benefits of well-functioning markets are well-known, and widely accepted. Such benefits are not theoretical, they are established on undisputable evidence. With competition, prices go down1 and quality goes up.
In that context, the overarching objective to be pursued by competition authorities is to contribute to the better functioning of markets. This cannot be limited to the prosecution of competition law infringements, which can only address a subset of market failures. Depending on sectors, competition enforcement can be complemented by sector regulation, consumer policy and advocacy to foster a more competition-friendly legal environment.
Designing a roadmap to improve market outcome may require significant resources to undertake a detailed analysis of markets—an analysis that would seek to describe economic drivers of the sector as well as the dynamics of consumer and firm behaviour in the market.