Article 81 EC and Public Policy

399 Pages·2009·1.99 MB·English

by  Christopher Townley

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ARTICLE 81 EC AND PUBLIC POLICY
This book discusses the role of public policy in Article 81 of the EC Treaty. The
Commission,and recently the Court of First Instance have said that the sole objective of
Article81ECisconsumerwelfare.Manycompetitionlawyerssupportthisview.Writingin
a crisp, plain style, Townley demonstrates that public policy considerations are still
relevantinthatprovision.Healsosuggestshowandwheretheyshouldbeconsidered.
The book explains how some of the most complex competition law cases can be
understoodandoffersaframeworkforthosefightingordecidingsuchcasesinthefuture.
As such, it will be of interest to European competition lawyers, both academics and
practitioners; as well as students, seeking a deeper understanding of how the European
competition rules work and how they interact both with European Union and Member
State public policy goals. It will also help competition economists by revealing the
mechanisms through which public policy considerations impact upon the consumer
welfaretestinEuropeanlaw.

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Article 81 EC and Public Policy
Christopher Townley

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ThisbookisdedicatedtoMrF.E.Townley(mygrandad),
forhisfriendship,patienceandwisdom.

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Acknowledgements
Work on this book would never have begun had it not been for the support and
enthusiasm of one of my favourite lawyers, Anna Bessant. Professors Amato, Motta,
Petersmann,UllrichandWhishallmadehelpfulcommentsonthePh.D.thesiswhichled
to this book; Giorgio Monti’s 2002 article in the area and his criticism of my work have
been invaluable. Since the Ph.D., which I defended at the EUI, Florence, I have received
untiring competition law and economics feedback from Giorgio Monti,James MacBeth,
Liza Lovdahl Gormsen and Richard Whish.In addition,many have provided support to
me (though perhaps you did not know it) both during my stay in Florence and at other
times,myfamilyandfriends(particularlyAidanMaddocks,AlexCarter,AlexWaters,Amy
Walker,CharlotteMaddocks,ClareTownley,dad,DaveDyer,DavidOsman,FredHouwen,
Galina Cornelisse, Heli Askola, Javier San Julian Arrupe, Lorenzo Zucca, Mark Braley,
MayaDaoud,MonicaAriñoGutierrez,mum,NeilCarter,OkeOdudu,OslaFraser,Rafael
Gafoor, Rob Maddocks, Ross Velton, Srdjan Cvijic, Vittorio Muschitiello and Zahid
Naqvi),thankyouall.
I would also like to thank my Ph.D.-funding body,the Department for Education and
Skills,whichwasextremelygenerous;aswellasKing’sCollegeLondon.
Butmostofall,thankyoutoEllieSmith,myanchorthroughallofthiswriting;yougave
mesomuch,andmademesowhole.Yourleavinghastornmeintwo,ablueboatbattered
on a stormy sea. Though I will never understand, I hope that you have found what you
werelookingfor.Ialwaysrememberyou;forever,suddenly.

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Table of Contents
Acknowledgements vii
ListofAbbreviations xi
TableofCases xiii
TableofLegislation xxiii
Introduction 1
PartA: ConsideringPublicPolicyObjectivesInCompetitionLaw
IntroductiontoPartA 11
Chapter1:CompetitionPolicyandPublicPolicyObjectivesinaTheoretical
Framework 13
1.Introduction 13
2.WhyCompetitionPolicymightIncludePublicPolicyObjectives 15
3.WhenCompetitionPolicymightIncludePublicPolicyObjectives 28
4.Conclusion 41
Chapter2:CompetitionPolicyandPublicPolicyObjectivesinaCommunityLaw
Framework 45
1.Introduction 46
2.InFavourof BalancinginArticle81EC 47
3.ObjectionstoBalancinginArticle81EC 87
4.Conclusion 102
Conclusionof PartA 105
PartB: HowandW hereisPublicPolicyBalancingPerformedin
Article81EC?
IntroductiontoPartB 111
Chapter3:HowtheBalanceisImplemented–Mere-Balancingin
Article81(1)EC 113
1.Introduction 113
2.CompromisewithinArticle81(1)EC 114
3.TwoRelatedQuestions 128
4.Conclusion 138
Chapter4:HowtheBalanceisImplemented–Mere-Balancingin
Article81(3)EC 141
1.Introduction 141
2.CompromisewithinArticle81(3)EC 142
ix
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