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News & Insights

STUDY: Interplay between the new competition tool and sector-specific regulation in the EU

  • 12 October 2020

CERRE Academic Co-Director, Alexandre de Streel, and CERRE Honorary Academic Director, Pierre Larouche, have co-authored a new study for the European Commission on the interplay between the envisaged New Competition Tool (NCT) and existing EU sector-specific regulation.

This study is part of the impact assessment that the European Commission is conducting for a possible New Competition Tool. It analyses the relationship between competition law and the various sectoral regulatory regimes making up the EU body of economic regulation.

Recommendations for the New Competition Tool integration

The authors explain that the proposed NCT could easily be integrated into the existing body of EU economic regulation. In light of experience with comparable tools in other jurisdictions, they make the following recommendations for integration:

  • The NCT should have a horizontal scope and apply across the board to the whole economy, including regulated sectors;
  • At the substantive level:
    • the NCT should rest on the same theoretical basis and methodology as existing EU economic regulation, without being straitjacketed within specific competition law methodology;
    • the NCT should be formulated in technology-neutral terms, i.e. using economic or functional concepts;
    • the fundamental elements of the NCT should be set out in legislation, and the role of soft-law – if any – should be limited to developing or elaborating on these fundamentals;
  • At the institutional level:
    • NCT implementation and enforcement should be embedded within the institutional framework for coordination under Regulation 1/2003, to ensure proper coordination with competition authorities;
    • If and when the NCT is applied in regulated sectors, close transversal cooperation should be put in place between the Commission (or any authority enforcing the NCT) and the relevant NRA(s) (or other regulatory authority) at every stage of the NCT implementation;
    • The NCT and sectoral regulation should apply concurrently, except in the rare case where a firm would be put in a position where it could not comply with one without breaching the other, in which case an EU-level remedy under the NCT should prevail over a national sectoral remedy.

Theories of harm

Prof. Martin Peitz (CERRE Senior Research Fellow) and Prof. Massimo Motta also contributed to the Commission’s impact assessment work with a report on “Intervention triggers and underlying theories of harm“.

Document(s)
Expert report for European Commission: Interplay between the New Competition Tool (NCT) and Sector-Specific Regulation in the EU
Author(s)
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Alexandre De Streel (2)
Alexandre de Streel
Academic Director
and University of Namur

Alexandre de Streel is the Academic Director of the digital research programme at the Brussels think-tank Centre on Regulation in Europe (CERRE), professor of European law at the University of Namur and visiting professor at the College of Europe (Bruges) and SciencesPo Paris. He sits in the scientific committees of the Knight-Georgetown Institute (US), the European University Institute-Centre for a Digital Society (Italy) and the Mannheim Centre for Competition and Innovation (Germany).

His main research areas are regulation and competition policy in the digital economy (telecommunications, platforms and data) as well as the legal issues raised by the developments of artificial intelligence. He regularly advises the European Union and international organisations on digital regulation.

Previously, Alexandre held visiting positions at New York University Law School, the European University Institute in Florence, Panthéon-Assas (Singapore campus), Barcelona Graduate School of Economics and the University of Louvain. He also worked for the Belgian Deputy Prime Minister, the Belgian Permanent Representation to the European Union, and the European Commission. He has also been the chair of the expert group on the online platform economy, advising the European Commission.

Alexandre de Streel is the Academic Director of the digital research programme at the Brussels think-tank Centre on Regulation in Europe (CERRE), professor of European law at the University of Namur and visiting professor at the College of Europe (Bruges) and SciencesPo Paris. He sits in the scientific committees of the Knight-Georgetown Institute (US), the European University Institute-Centre for a Digital Society (Italy) and the Mannheim Centre for Competition and Innovation (Germany).

His main research areas are regulation and competition policy in the digital economy (telecommunications, platforms and data) as well as the legal issues raised by the developments of artificial intelligence. He regularly advises the European Union and international organisations on digital regulation.

Previously, Alexandre held visiting positions at New York University Law School, the European University Institute in Florence, Panthéon-Assas (Singapore campus), Barcelona Graduate School of Economics and the University of Louvain. He also worked for the Belgian Deputy Prime Minister, the Belgian Permanent Representation to the European Union, and the European Commission. He has also been the chair of the expert group on the online platform economy, advising the European Commission.

Pierre Larouche
Pierre Larouche
Research Fellow
and University of Montréal

Prof. Pierre Larouche holds the chair of Law and Innovation at Université de Montréal, where he also directs the PhD programme on Innovation, Science, Technology and Law.

A graduate of McGill University, Bonn University and Maastricht University and a law clerk at the Supreme Court of Canada, Pierre Larouche was Professor of Competition Law at Tilburg University (Netherlands) from 2002 to 2017. There he founded and directed the Tilburg Law and Economics Center (TILEC), one of the largest research centres on economic governance. He also conceived and launched the Bachelor Global Law, an innovative law degree inspired by his meta-comparative and inter-disciplinary method. In his capacity as Associate Dean, he led the LL.B. reform at Université de Montréal. Pierre Larouche also taught at the College of Europe (Bruges) (2004-2016), and he has been a guest professor or scholar at McGill University (2002), National University of Singapore (2004, 2006, 2008, 2011, 2013), Northwestern University (2009-2010, 2016-2017), Sciences Po (2012), the University of Pennsylvania (2015) and the Inter-Disciplinary Center (IDC, 2016).

Pierre Larouche’s research centers around economic governance, and in particular how law and regulation struggle to deal with complex phenomena such as innovation. An expert in competition law and civil liability, his works have been cited by the European Court of Justice and the UK Supreme Court, and they have influenced EU policy on electronic communications, competition and standardisation.

Prof. Pierre Larouche holds the chair of Law and Innovation at Université de Montréal, where he also directs the PhD programme on Innovation, Science, Technology and Law.

A graduate of McGill University, Bonn University and Maastricht University and a law clerk at the Supreme Court of Canada, Pierre Larouche was Professor of Competition Law at Tilburg University (Netherlands) from 2002 to 2017. There he founded and directed the Tilburg Law and Economics Center (TILEC), one of the largest research centres on economic governance. He also conceived and launched the Bachelor Global Law, an innovative law degree inspired by his meta-comparative and inter-disciplinary method. In his capacity as Associate Dean, he led the LL.B. reform at Université de Montréal. Pierre Larouche also taught at the College of Europe (Bruges) (2004-2016), and he has been a guest professor or scholar at McGill University (2002), National University of Singapore (2004, 2006, 2008, 2011, 2013), Northwestern University (2009-2010, 2016-2017), Sciences Po (2012), the University of Pennsylvania (2015) and the Inter-Disciplinary Center (IDC, 2016).

Pierre Larouche’s research centers around economic governance, and in particular how law and regulation struggle to deal with complex phenomena such as innovation. An expert in competition law and civil liability, his works have been cited by the European Court of Justice and the UK Supreme Court, and they have influenced EU policy on electronic communications, competition and standardisation.

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