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International Business Administration

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.

You have to register by sending an E-Mail to until October 14th, 2016. This deadline is also valid for all Erasmus / fx-students. Please use your Viadrina E-mail address if possible. Erasmus / fx students may also register via their private E-Mail address in case that the Viadrina E-Mail account is not set up yet. The point in time you send the E-Mail serves as one decision criterion whether you are in or out. In order to increase the diversity and heterogeneity of the participants a few places are reserved for Erasmus /fx-students.

Afterwards, you will be registered automatically by our chair in the Moodle system. You cannot enroll for this course via the Moodle system by yourself!

The capacity is limited to 16 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 UPS was not allowed to take over its rival TNT Express, why Apple had to change its e-book pricing model and HRS must not use a best price clause for its hotel reservation system? Why can EU governments not subsidize their national airlines or foreign direct investment as they see fit? Why was Intel fined one billion Euro for writing exclusivity contracts with its customers? 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:
I. Introduction

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
3. Remedies

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 of November (24.-26.11.2016) and take place in Room AM204.

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.

Further information:
Registration via E-Mail required.