What Would Adam Smith Have Thought About Modern Cartel Policy, 300 Years After His Birth?

(By Bruce Lyons)  The Tercentenary of Adam Smith’s birth prompted me to revisit one of the most famous quotes in competition policy and remind myself what he really said and in what context. Would he have approved of modern cartel policy, or would he have considered it regulatory meddling in the natural working of the market?

Competing on sustainability

(by Peter Ormosi) Morrisons recently announced that all their food will be sourced from carbon neutral farms by 2030 (10 years before the 2040 net-zero commitment of the National Farmers’ Union). This has immediately triggered speculation as to whether, and how quickly, their rivals will follow suit. Although it may not be outright obvious, Morrisons’ move raises a number of interesting questions for competition policy, especially given that its announcement is not unique, and we are witnessing a growing number of markets where firms are increasingly competing not only on factors such as price, or quality, but on sustainability as well. As sustainability is gaining more central attention in competition policy, it is useful to ask how much of our conventional wisdom from competition economics we can use to understand the market incentives behind businesses’ sustainability investments. This thought experiment is useful for regulators to understand which are the industries where regulation may be necessary, and which are the ones where market forces and competition may be more effective in delivering more sustainable business behaviour.

Do Plans for a European Super League Breach Competition Law?

(by Andreas Stephan) The world of European football was thrown into controversy this week by the announcement that 12 leading clubs have agreed to join a new European Super League (ESL). Unlike the Champions League, the ESL will consist of a permanent membership, with only 5 of its 20 slots open to qualification from other teams. The move has widely been condemned by sports fans and political leaders, and UEFA have said, ‘We will consider all measures available to us, at all levels, both judicial and sporting in order to prevent this happening. Football is based on open competitions and sporting merit it cannot be any other way.’ This blog takes a brief look at the possible competition law implications of the Super League.