Advertisement

Competition Law and Policy as an Emerging IPE Issue

  • Tim Büthe
Chapter
Part of the Palgrave Handbooks in IPE book series (PHIPE)

Abstract

Competition policy seeks to constrain market power and safeguard market entry and contestability, mostly through legal and regulatory mechanism. It has traditionally been considered a domestic matter—warranting above all legal and economic analysis. I argue that competition policy is an important and inherently political emerging IPE issue. I identify three recent developments that make competition law and policy an important emerging issue for understanding international political economy: (1) a changing understanding of the political economy of trade as requiring competition law and policy as complements, (2) the rapid global diffusion competition law and policy, and (3) the resulting increased probability of cross-border conflicts—with corresponding incentives for increased transgovernmental cooperation. For each of these developments, I flag opportunities for research by IPE scholars.

References

  1. Anderson, Robert D., and Simon J. Evenett. 2006. Incorporating Competition Elements into Regional Trade Agreements: Characterization and Empirical Analysis, Manuscript, WTO and University of St. Gallen, 24 July 2006.Google Scholar
  2. Auquier, A.A., and Richard E. Caves. 1979. Monopolistic Export Industries, Trade Taxes, and Optimal Competition Policy. The Economic Journal 89 (355): 559–581.CrossRefGoogle Scholar
  3. Aydin, Umut, and Tim Büthe. 2016. Competition Law & Policy in Developing Countries: Explaining Variations in Outcomes; Exploring Possibilities and Limits. Law and Contemporary Problems 79(4) (Autumn 2016, Symposium Issue on ‘Competition Law and Policy in Developing Countries: Most (Un)Likely to Succeed?’ edited by Tim Büthe and Umut Aydin): 1–36.Google Scholar
  4. Balleisen, Edward J., and David A. Moss, eds. 2010. Government and Markets: Toward a New Theory of Regulation. New York: Cambridge University Press.Google Scholar
  5. Baumol, William J., and Janusz A. Ordover. 1985. Use of Antitrust to Subvert Competition. Journal of Law and Economics 28 (2 (May 1985, special issue on Antitrust and Economic Efficiency)): 247–265.CrossRefGoogle Scholar
  6. BEUC, The European Consumer Organization. 2018. The European Consumer Organisation (BEUC) is Upgrading Its Work on Competition Law Enforcement. Brussels: BEUC News, 24 January 2018. Online at http://www.beuc.eu/press-media/news-events/agust%C3%ADn-reyna-head-beuc’s-work-competition-law-enforcement. Last accessed 2018/03/11.
  7. Blackhurst, Richard. 1991. Trade Policy Is Competition Policy. In Competition and Economic Development, ed. Kurt Stockman and Louis Emmerij, 253–258. Paris: OECD.Google Scholar
  8. Böhm, Franz. 1961. Democracy and Economic Power. In Cartel and Monopoly in Modern Law: Reports on Supranational and National European and American Law, presented to the International Conference on Restraints of Competition at Frankfurt am Main, June 1960, 25–45. Karlsruhe: Verlag C. F. Müller.Google Scholar
  9. Bradford, Anu, and Tim Büthe. 2015. Competition Policy and Free Trade: Antitrust Provisions in PTAs. In Trade Cooperation: The Purpose, Design and Effects of Preferential Trade Agreements, ed. Andreas Dür and Manfred Elsig, 246–274. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  10. Brunell, Richard. 2011. The Effect of AT&T’s Acquisition of T-Mobile Is Likely to Substantially Lessen Competition, White Paper of the American Antitrust Institute, August 2011.Google Scholar
  11. Business Europe, the Confederation of European Business Associations. 2017. Effective Enforcement of EU Competition Rules by National Competition Authorities (ECN+). Position Paper on a Commission Proposal for a Directive. Brussels: BusinessEurope, 30 October 2017.Google Scholar
  12. Büthe, Tim. 2007. The Politics of Competition and Institutional Change in the European Union: The First Fifty Years. In Making History: European Integration and Institutional Change at Fifty (State of the European Union, vol.8), ed. Sophie Meunier and Kathleen McNamara, 175–193. Oxford: Oxford University Press.Google Scholar
  13. ———. 2014. The Politics of Market Competition: Trade and Antitrust in a Global Economy. In Oxford Handbook of the Politics of International Trade, ed. Lisa L. Martin, 213–232. New York: Oxford University Press.Google Scholar
  14. Büthe, Tim, and Cindy Cheng. 2017. The Effect of Competition Law on Innovation: A Cross-National Statistical Analysis. In A Step Ahead: Competition Policy for Shared Prosperity and Inclusive Growth, 187–224. Washington, DC: World Bank and OECD.CrossRefGoogle Scholar
  15. Büthe, Tim, and Shahryar Minhas. 2015. The Global Diffusion of Competition Laws: A Spatial Analysis. Paper presented at the 6th Meeting of the UNCTAD Research Partnership Platform in the context of the 7th United Nations Conference to Review the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices (Competition Policy), Geneva, 10 July 2015.Google Scholar
  16. Büthe, Tim, and Stephen N. Morgan. 2015. Antitrust Enforcement and Foreign Competition: Special Interest Theory Reconsidered. Paper presented at the Annual Meeting of the Agricultural and Applied Economics Association, San Francisco, 26–28 July 2015. Available at https://econpapers.recep.org.
  17. Büthe, Tim, and Gabriel T. Swank. 2010. The Politics of Merger Control: Understanding the Divergent EU Merger Review Decisions in GE-Honeywell and Boeing-McDonald Douglas, Unpublished manuscript.Google Scholar
  18. Büthe, Tim, and Moohyung Cho with Becker, et al. 2017. Power and Institutionalized International Regulatory Cooperation: A Multi-Method Analysis of Antitrust Agreements. European Affairs Review 22 (2.1 (special issue)): 115–136.Google Scholar
  19. Cheng and Büthe. 2018. How Many Lawyers Does It Take to Change a Light Bulb? Competition Law, Innovation and State Capacity, Unpublished manuscript, TUM School of Governance/Hochschule für Politik.Google Scholar
  20. Cini, Michelle, and Lee McGowan. 2009. Competition Policy in the European Union. 2nd ed. New York: Palgrave Macmillan.CrossRefGoogle Scholar
  21. Cooper, James C., Paul A. Pautler, and Todd J. Zywicki. 2005. Theory and Practice of Competition Advocacy at the FTC. Antitrust Law Journal 72 (3): 1091–1112.Google Scholar
  22. Dabbah, Maher M. 2007. The Relationship Between Islam and Competition Law and Policy. In Competition Law and Policy in the Middle East, 18–33. Cambridge/New York: Cambridge University Press.CrossRefGoogle Scholar
  23. ———. 2010. International and Comparative Competition Law. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
  24. Damro, Chad. 2001. Building an International Identity: The EU and Extraterritorial Competition Policy. Journal of European Public Policy 8 (2): 208–226.CrossRefGoogle Scholar
  25. De Roover, Raymond. 1951. Monopoly Theory Prior to Adam Smith: A Revision. Quarterly Journal of Economics 65 (4): 492–524.CrossRefGoogle Scholar
  26. Deisenhofer, Thomas. 2017. Assessing Innovation Effects in Dow/Dupont: Breaking New Ground or Déjà-vu? American Bar Association GSS Presentation, 5 May.Google Scholar
  27. Djelic, Marie-Laure. 1998. Exporting the American Model: The Postwar Transformation of European Business. New York: Oxford University Press.CrossRefGoogle Scholar
  28. Fels, Allan, and Wendy Ng. 2013. Rethinking Competition Advocacy in Developing Countries. In Competition Law and Development, ed. D. Daniel Sokol, Thomas K. Cheng, and Ioannis Lianos, 182–198. Stanford: Stanford University Press.CrossRefGoogle Scholar
  29. Fligstein, Neil. 2001. The Architecture of Markets: An Economic Sociology of Twenty-First-Century Capitalist Societies. Princeton: Princeton University Press.Google Scholar
  30. Fox, Eleanor M. 2002. Mergers in Global Markets: GE/Honeywell and the Future of Merger Control. University of Pennsylvania Journal of International Economic Law 23 (2 (Summer)): 457–468.Google Scholar
  31. Freyer, Tony A. 1992. Regulating Big Business: Antitrust in Great Britain and America, 1880–1990. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  32. Gal, Michal S. 2003. Competition Policy for Small Market Economies. Cambridge: Harvard University Press.Google Scholar
  33. Gerber, David J. 2010. Global Competition: Law, Markets, and Globalization. New York: Oxford University Press.CrossRefGoogle Scholar
  34. Glanz, Rachel, and Tim Büthe. 2016. Competition Advocacy as an Anti-Rent-Seeking Policy? An Empirical Analysis. In Pursuing Competition and Regulatory Reforms for Achieving Sustainable Development Goals (Papers and Proceedings from the 4th Biennial CUTS/CIRC Competition, Regulation & Development Conference), ed. Rijit Sengupta, 51–72. Jaipur: CUTS International.Google Scholar
  35. Gomes-Casseres, Benjamin. 2017. What the Big Mergers of 2017 Tell Us About 2018. Harvard Business Review, December 28.Google Scholar
  36. Gutmann, Jerg, and Stefan Voigt. 2014. Lending a Hand to the Invisible Hand? Assessing the Effects of Newly Enacted Competition Laws, Manuscript, University of Hamburg, February 2014.Google Scholar
  37. Guzman, Andrew T. 1998. Is International Antitrust Possible? New York University Law Review 73 (5): 1501–1548.Google Scholar
  38. ———. 2004. The Case for International Antitrust. Berkeley Journal of International Law 22 (3): 355–374.Google Scholar
  39. Helpman, Elhanan, and Paul R. Krugman. 1985. Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy. Cambridge, MA: MIT Press.Google Scholar
  40. Hobson, John Atkinson. 1902. Imperialism: A Study.Google Scholar
  41. Irina, Knyazeva. 2013. Competition Advocacy: Soft Power in Competitive Policy. Procedia Economics and Finance: International Economic Conference of Sibiu 2013 6 (2013): 280–287.CrossRefGoogle Scholar
  42. John, Richard R. 2012. Robber Barons Redux: Antimonopoly Reconsidered. Enterprise and Society 13 (1): 1–38.CrossRefGoogle Scholar
  43. Kovacic, William E. 2001. Transatlantic Turbulence: The Boeing-McDonnell Douglas Merger and International Competition Policy. Antitrust Law Journal 68 (3 (Spring)): 805–873.Google Scholar
  44. Kovacic, William E., and Marianela Lopez-Galdos. 2016. Lifecycles of Competition Systems: Explaining Variation in the Implementation of New Regimes. Law and Contemporary Problems 79 (4 (Autumn)). 2016, Symposium Issue on ‘Competition Law and Policy in Developing Countries: Most (Un)Likely to Succeed?’, edited by Tim Büthe and Umut Aydin): 85–122.Google Scholar
  45. Kovacic, William E., and Carl Shapiro. 2000. Antitrust Policy: A Century of Economic and Legal Thinking. Journal of Economic Perspectives 14 (1 (Winter)): 43–60.CrossRefGoogle Scholar
  46. Kronthaler, Franz, and Johannes Stephan. 2007. Factors Accounting for the Enactment of a Competition Law: An Empirical Analysis. The Antitrust Bulletin 52 (2 (Summer)): 137–168.CrossRefGoogle Scholar
  47. Krugman, Paul R. 1979. Increasing Returns, Monopolistic Competition and International Trade. Journal of International Economics 9 (1979): 469–479.CrossRefGoogle Scholar
  48. ———. 1980. Scale Economies, Product Differentiation, and the Pattern of Trade. American Economic Review 70 (5): 950–959.Google Scholar
  49. Lenin, V.I. 1991 (1916). Imperialism: The Highest Stage of Capitalism. In International Political Economy: Perspectives on Global Power and Wealth, ed. Jeffry A. Frieden and David A. Lake, 109–119. New York: St. Martin’s Press.Google Scholar
  50. Lovasy, Gertrud. 1947. International Cartels. Lake Success: United Nations Department of Economic Affairs.Google Scholar
  51. Melitz, Marc J. 2003. The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity. Econometrica 71 (6): 1695–1725.CrossRefGoogle Scholar
  52. Monopolkommission. 2015. Zusammenschlussvorhaben der Edeka Zentrale AG & Co. KG mider Kaiser’s Tengelmann GmbH: Sondergutachten 70 der Monopolkommission gemäß §42 Abs.4 Satz 2 GWB. Bonn, 3 August 2015.Google Scholar
  53. Morgan, Eleanor J., and Steven McGuire. 2004. Transatlantic Divergence? GE Honeywell and the EU’s Merger Policy. Journal of European Public Policy 11 (1): 39–56.CrossRefGoogle Scholar
  54. Müller-Armack, Alfred. 1964. Wirtschaftsordnung und Wirtschaftspolitik: Studien und Konzepte zur Marktwirtschaft und zur europäischen Integration. Freiburg i. Br.: Rombach.Google Scholar
  55. Nikomborirak, Deunden. 2013. The Political Economy of the Competition Regimes in Thailand and South Korea: A Comparison. In Building New Competition Law Regimes: Selected Essays, ed. David Lewis, 110–131. Cheltenham, UK/Northampton: Edward Elgar with the International Development Research Centre.CrossRefGoogle Scholar
  56. Palim, Mark R.A. 1998. The Worldwide Growth of Competition Law: An Empirical Analysis. Antitrust Bulletin 43 (1 (Spring)): 105–145.Google Scholar
  57. Parakkal, Raju. 2011. Political Characteristics and Competition Law Enactment: A Cross-Country Empirical Analysis. Antitrust Bulletin 56 (3 (Fall)): 609–629.CrossRefGoogle Scholar
  58. Parakkal, Raju, and Sherry Bartz-Marvez. 2013. Capitalism, Democratic Capitalism, and the Pursuit of Antitrust Laws. Antitrust Bulletin 58 (4 (Winter)): 693–729.CrossRefGoogle Scholar
  59. Pauly, Louis W. 2003. International Financial Institutions and National Economic Governance: Aspects of the New Adjustment Agenda in Historical Perspective. In The International Financial History in the Twentieth Century: System and Anarchy, ed. Marc Flandreau, Carl-L. Holtferich, and Harold James, 239–263. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  60. PTI. 2017. Dow Chemical-DuPont Merger May Impact Competition: CCI. Economic Times of India, March 22.Google Scholar
  61. Ranjan, Priya, and Jibonayan Raychaudhuri. 2016. The ‘New-New’ Trade Theory: A Review of the Literature. In International Trade and International Finance: Explorations of Contemporary Issues, ed. Malabika Roy and S. Sinha Roy, 3–21. New Delhi: Springer India.Google Scholar
  62. Schinkel, Maarten Pieter, and Jan Tuinstra. 2006. Imperfect Competition Law Enforcement. International Journal of Industrial Organization 24 (6): 1267–1297.CrossRefGoogle Scholar
  63. Sokol, D. Daniel, Thomas K. Cheng, and Ioannis Lianos, eds. 2013. Competition Law and Development. Stanford: Stanford University Press.Google Scholar
  64. Vedia Jerez, Horacio. 2014. Competition Law Enforcement and Compliance across the World: A Comparative Review. Alphen aan den Rijn Wolters Kluwer Law & Business.Google Scholar
  65. Weymouth, Stephen. 2016. Competition Politics: Interest Groups, Democracy, and Antitrust Reform in Developing Countries. Antitrust Bulletin 61 (2): 296–316.CrossRefGoogle Scholar
  66. Wilks, Stephen. 2010. Competition Policy: Towards an Economic Constitution? In Policy-Making in the European Union, ed. Helen Wallace and Mark A. Pollack, 133–155. New York: Oxford University Press.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Tim Büthe
    • 1
    • 2
  1. 1.Hochschule für PolitikTechnical University of MunichMunichGermany
  2. 2.Kenan Institute for EthicsDuke UniversityDurhamUSA

Personalised recommendations