The purpose of competition policy

Conclusion

We believe that the Commission attributes too great a significance, almost magical powers, to business rivalry as a force in economic life. There are no grounds for this either in the Treaty or in actual experience. While not wishing to deny that business rivalry may entail great benefits, we would insist that its drawbacks should not be ignored and that competition policy should turn mainly on market performance.

In fact, the Commission is not pursuing a liberal competition policy but has adopted a case-by-case, noneconomic, legal approach that takes no account of performance.

Monopoly is generally condemned. But monopoly, no more than oligopoly, which is usually coordinated, should not be condemnedper se. Monopoly may even result in better market performance than oligopoly.

Competition policy must not therefore be considered an end in itself but must be seen in the light of general economic policy and, more specifically, of price policy. It must be regarded in fact as a component part of price policy.