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Archive for September 11th, 2014

A new Commissioner for Competition

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Putting an end to all rumors and speculations the European Commission confirmed yesterday the names of the members of the upcoming Juncker Commission (European Parliament confirmation is still pending and may be tricky for some). It’s now public that once Vice President Almunia leaves office on 31 October the competition portfolio will go to Danish Commissioner Margrethe Vestager.

As widely reported, Ms. Vestager is a 46 year old politician, mother of three, until recently Deputy Prime Minister in charge of economic affairs in Denmark (previously she was also Minister for Education and for Ecclesiastical issues) who has built a very solid reputation both in Denmark and in European circles.

As you may have read, President Juncker has introduced structural innovations in the Commission’s work, creating project groups under a hierarchical system under which Commissioners will report to a Vice President. The Commissioner for Competition will not hold a Vice Presidency this time but will liaise with other Commission Vice Presidents and contribute to their projects. The Mission Letter given by President elect Juncker to Ms. Vestager (available here) insists on the fact that Commissioner Vestager “will, in particular, contribute to projects steered and coordinated by the Vice-President for Jobs, Growth, Investment and Competitiveness, the Vice-President for the Digital Single Market and the Vice-President for Energy Union. As a rule, you will liaise closely with the Vice-President for Jobs, Growth, Investment and Competitiveness in defining the general lines of our competition and state aid policies and the instruments of general scope related to them”.

Juncker’s Mission Letter to Vestager also asks the new Commissioner to focus on “[m]obilising competition policy tools and market expertise so that they contribute, as appropriate, to our jobs and growth agenda, including in areas such as the digital single market, energy policy, financial services, industrial policy and the fight against tax evasion. In this context, it will be important to keep developing an economic as well as a legal approach to the assessment of competition issues and to further develop market monitoring in support of the broader activities of the Commission”.

Query: does all this suggest that competition law will be playing more of an instrumental role and would be more permeable to influences from other policy areas? Not that the instrumental role of competition policy is new,  particularly in the wake of the Lisbon Treaty, but this is a move that may satisfy the various politicians who have expressed concerns in the course of the present mandate, and that could fit within a “politicization” trend that we’ve discussed here before. I was also surprised to read in the letter that competition law will be mobilized to fight tax evasion (see here for our preliminary –soon to be developed- take on this).

Another most important point. I’ve also skimmed through the new Commissioner’s twitter account (here) only to find out –despite my poor Danish- that she’s got a good taste for pizza (see here for a tweet from last week displaying a picture of easily identifiable Mamma Roma’s great material eaten in between talks with Juncker).

Ms. Vestager will take office in November 2014 and will also have to face a number of pending issues. Most attention in this regard has focused on the Google investigation (by the way, the Wall Street Journal quoted some of my views on this matter a couple of days ago- full text available here). Commissioner Almunia now seems to have accepted that he won’t be able to finish the case during the rest of his time in office, which is something that many –including myself- would have thought impossible only a few weeks ago.

But despite the media focus, not everything done by Almunia has had to do with Google. This is now the time for observers to review what has been done under his mandate, and the Commissioner himself has started to do just that. Speaking yesterday at Georgetown he did a first balance of his time in office (the speech “Looking back on 5 years of competition enforcement in the EU” is available here).  And tomorrow he’ll be participating at a roundtable at Fordham’s annual antitrust conference that will also take stock of what has been done in the course of his mandate; the roundtable will be chaired by my partner Marcos Araujo and will also feature U.S. Assistant Attorney General Baer, Christine Varney and Ian Forrester.

We’ll report on that discussion asap. For now, I’m going to take advantage of the fact that my 10 days old baby is asleep to read and comment on the important MasterCard and Cartes Bancaires Judgments rendered by the ECJ only minutes ago…

Written by Alfonso Lamadrid

11 September 2014 at 12:44 pm

Upcoming events

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Platforms like this blog are supposed to be 2-sided markets where the service is provided to users for free and paid-for by revenues obtained in the other side of the market, notably via advertising. We may be among the few economic illiterates that haven’t devised a way to monetize at all our advertising and, instead, have traditionally advertised anything that friends do (plus the books and journals of which Nicolas gets a copy; e.g. see the post below this one). In that spirit:

On 26 September the Competition Law Scholars Forum (CLASF) will be holding its 23rd workshop in Madrid under the title  Competition Law in Leisure Markets. The program, which includes discussions on Google, ebooks, football and even bullfighting, is available here.

By the way, one of the organizers of this event –Prof. Barry Rodger- has just released a competition law textbook (co-written with Angus MacCulloch) titled “Competition Law and Policy in the EU and UK”. The book will be supported by the Who’s Competing blog. Here’s the flyer: Competition Law & Policy Flyer

On 30 September AntitrustItalia will be hosting a discussion on the Intel Judgment in Brussels featuring Manuel Kellerbauer and Luigi Malferrari, both from the Commission’s Legal Service. Click here for more info.

The university where I studied (which thanks to Prof. Jerónimo Maillo has always paid a great and uncommon attention to competition issues) will be holding an International Conference, also in Madrid, under the title “The Fight against Hard Core Cartels: Trends, Challenges and Best International Practices” on 27-28 November. The call for papers is available here: Call for PapersThe Fight Against Hard Core Cartels

Unfortunately I won’t be able to attend it because on 28 November I’ll be enjoying the warmness of Stockholm at the Swedish Competition Authority’s Pros and Cons Conference, which this time will be centered on Two-sided markets. The title of my presentation will be “The double duality of two-sided markets (on competition law and complexity)”. Now I only have to figure out what the heck to say.

Written by Alfonso Lamadrid

11 September 2014 at 12:14 pm