Scandinavian Working Papers in Economics

Working Papers,
Copenhagen Business School, Department of Economics

No 11-2002: Competition compliance: limits to competition policy harmonisation in EU enlargement

Jochen Lorentzen and Peter Møllgaard
Additional contact information
Jochen Lorentzen: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
Peter Møllgaard: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark

Abstract: The paper analyses the extent of and the reasons behind limits to competition policy harmonisation in EU enlargement. Our focus is on vertical restraints. First, we compare the relevant legal regimes towards vertical agreements in the EU and in Eastern Europe. We then describe competition policy practice in all ten EU candidate countries and point out differences both between East and West and among the candidates. Finally, we examine a large database of inter-firm agreements in Eastern Europe’s car industry and use insights from case studies of subcontracting to highlight instances of non-conformity between (1) East European competition law and practice and (2) EU rules and East European competition law enforcement. The conclusion recommends how to improve competition policy practice, and thus compliance, postenlargement.

Keywords: Competition policy; vertical restraints; vertical agreements; Eastern Europe; EU harmonisation; subcontracting; competition law

JEL-codes: D40; G18; K00; K12; L14; L42

15 pages, September 1, 2002

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