(by Morten Hviid) Who should pay for the enforcement of competition law? The current UK consultation suggests that in the main it should be [some of] the users. When considering how to finance enforcement, however, it is important to remember that this delivers positive externalities. Read the rest of this entry »
Separating Consumer Protection from Competition Enforcement: ‘if it ain’t broke, why fix it?’
May 11, 2011(by Pinar Akman) Part of the UK government consultation on reform of the competition regime relates to whether the merged Competition and Markets Authority (CMA) should have ‘a clear principal competition focus’. As one reads on, it appears that the issue really is whether the CMA should have no consumer protection role at all and only have competition law powers. The Government believes that the scope of the activities of the CMA should not include any consumer powers or functions. It provides no substantive justification for this view. Depriving the CMA of consumer powers and functions is alarming. Why? Read the rest of this entry »
Economic Regulation and Competitive Markets Make Uneasy Bedfellows
May 6, 2011(by Catherine Waddams ) In regulated UK industries, both the OFT and sector regulators can apply competition law (i.e. abuse of dominance or anticompetitive agreements). The current UK consultation about reforming the competition regime asks for opinions about this concurrency of powers across the Competition Authority and sector Regulators. In particular, it seeks views on which agency should handle competition cases in the regulated sectors. This question raises fundamental issues about the relationship between economic regulation and competitive markets. Experience shows that they make uneasy bedfellows. Read the rest of this entry »