The Law and Economics of European Competition Policy
Exam number: 6412
Semester: from 1st semester
Duration of the module: One semester
Form of the module (i.e. obligatory, elective etc.): Elective
Frequency of module offer: Irregularly.
Prerequisites: As a prerequisite you need knowledge in microeconomics, math and statistics (Bachelor level). The seminar can be chosen by IBA-Master and MES-Master students.
The capacity limit of participants has been reached! We do not accept any application for participation. Those students who have recieved a confirmation from the Chair have been registered in the Moodle system.
The capacity is limited to 20 students.
Applicability of module for other study programmes:
Obligatory or elective in other study programmes. For further information check regulations of the study programme.
Person responsible for module: Prof. Dr. Georg Stadtmann
Name of the professor: Prof. Dr. Stephan Simon
Language of teaching: English
ECTS-Credits (based on the workload): 6
Workload and its composition (self-study, contact time):
Contact time (lecture, tutorials, seminar etc.) 45 h; self-study: 135 h
Contact hours (per week in semester): 3
Methods and duration of examination:
Successful written exam (120 min)
Emphasis of the grade for the final grade: Please check regulations of the study programme
Aim of the module (expected learning outcomes and competencies to be acquired):
Did you ever wonder why Google was fined EUR 2.4 billion, why Ireland is ordered to recover EUR 13 billion in taxes from Apple and HRS must not use a best price clause for its hotel reservation system? Why can EU governments not subsidize their national airlines (Alitalia, Air Berlin) or foreign direct investment as they see fit? The answer is because there is a watchdog sitting in Brussels and enforcing the European Competition Policy.
Competition Policy is part of the policy objectives of the EU since its inception in 1957. Originally a policy field dominated by lawyers, there is today a clear understanding that economics play an equally important role. Competition policy and enforcement is concerned with economic concepts such as the relevant market, market power, entry barriers and the effects of certain restrictive practices on the market, be they mergers, agreements, unilateral behaviour or subsidies. This course builds on courses in industrial economics and applies these concepts and methods to real world cases. It is also open to law students with an understanding of basic micro-economic concepts. In each module students will discuss one or two landmark competition cases. At the end of the course students will be able to analyse cases by applying economic techniques to identify anti- or pro-competitive effects and to develop a possible theory of harm.
Contents of the module:
1. Objectives of competition policy
2. Consumer welfare, efficiency gains and the market integration objective
3. Economic thinking: from Harvard and Ordo to Chicago
4. Rules and institutions of EU competition law
5. Basic economic concepts: Market definitions, market power, theories of harm and efficiencies
II. The Law and Economics of Horizontal Cooperation Agreements and Cartels
1. Economic theories of harm for horizontal cooperation and collusion
2. Block Exemptions on R&D, Technology Transfer and Specialisation
3. Hard core cartels, fines and leniency
III. The Law and Economics of Vertical Restraints
1. Input and Customer foreclosure through supply and distribution contracts
2. Resale price maintenance and territorial protection
3. The block exemptions on distribution agreements
IV. The Law and Economics of Abuse of Dominance
1. Single and collective dominance
2. Exploitative and exclusionary practices
3. The Commission's guidance paper
V. The Law and Economics of Merger Control
1. Horizontal, vertical and conglomerate mergers
2. Theories of harm: Unilateral vs. co-ordinated effects
VII. The Law and Economics of State Subsidies (State Aid Control)
1. Economic theories of harm: subsidy races, rent-seeking, moral hazard
2. The EU-notion of state aid
3. Compatible aid and recovery
Teaching and learning methods:
Lectures, tutorials, seminar
Special features (e.g. percentage of online-work, practice, guest speaker, etc.):
The lectures will be scheduled mid/end of November (26-28.11.2020). Further information can be found in Moodle.
Literature (compulsory reading, recommended literature):
Bishop/Walker: The Economics of EC Competition Law. 3rd edition, Sweet & Maxwell, 2010.
Faull/Nikpay: The EC Law of Competition. 3rd edition Oxford University Press, 2014.
Gerardin/ Layne-Farrar/ Petit: EU Competition Law and Economics. Oxford University Press, 2012.
Gore/Lewis/Lofaro/Dethmers: The Economic Assessment of Mergers under European Competition Law. Cambridge University Press, 2013
Lyons: Cases in European Competition Policy. The Economic Analysis. Cambridge University Press, 2009.
Motta: Competition Policy. Theory and Practice. Cambridge University Press, 2004.
Registration via E-Mail required. Deadline of registration is 18th of October, 2020. Please send your full details for registration including the study program you are in and your matriculation number.