Table Of ContentRediscovering Competition
edited by
Roland Sturm, Jurgen Dieringer, Markus M. Muller
Theorie und Praxis neuer Staatlichkeit
Herausgegeben von Roland Sturm
Band 3
Roland Sturm, JUrgen Dieringer, Markus M. MUller
(eds.)
Rediscovering Competition
Competition Policy in East Central Europe in
Comparative Perspective
Springer Fachmedien Wiesbaden GmbH 2001
Published with the support ofthe Volkswagen Foundation
Getbrdert von der Volkswagen-Stiftung
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ISBN 978-3-8100-3068-9 ISBN 978-3-663-12339-2 (eBook)
DOI 10.1007/978-3-663-12339-2
© Springer Fachmedien Wiesbaden 2001
Ursprunglich erschienen bei Leske + Budrich, Opladen 2001
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E-mail: [email protected]
Preface
This edited volume is based on theoretical and empirical findings of the
research project "Regulation and Deregulation in the Economic
Transformation Process" at the "Social Science Research Centre" of
Erlangen-Nuremberg University and on the proceedings of an international
conference held in Budapest, which brought together academics and
decision-makers from Western Europe, North America and East Central
Europe.
The volume consists of two parts. First, in two contributions, the basics
of the debate on regulatory policy in Gernlany and Great Britain are
presented. In a second step academics from Political Science, Economics and
Law as wen as decision-makers from Poland, the Czech Republic, Slovakia
and Hungary discuss competition law, institutional aspects of competition
control offices and regulatory policy in East Central Europe with an
additional focus on transport. The contributions of the decision-makers
should be considered as insider reports.
The editors would like to thank the Volkswagen Foundation, Dr. Alfred
Schmidt in particular, for fmancing both the research project and the
Budapest conference. We would also like to thank Prof. Dr. Manfred
Stosberg, Dr. Margarete HOllbacher and Heidi Imgrund from the Social
Science Research Centre in Nuremberg as well as Monika Viehfeger and
Christa Beck from the Institute of Political Science in Erlangen for their
support. Thanks also to Katalin Volford, Kilian Topp, Christofer Zwanzig,
Kimo Logan, Hethe Clark and Seth Napier for their assistance with the
translation and editing of the volume.
ErlangenlNuremberg in May 200 I The editors
Contents
Introduction
Governing Capitalist Economies: Beyond the Regulation Debate ................. 9
Roland Sturm and Markus M Muller
I. Competition Policy in Western Europe
Der neue regulatorische Staat in Deutschland .............................................. 25
Markus M Maller
Competition Policy and Deregulation in Britain:
Utility Regulation and Regulatory Reform ................................................... 41
Stephen Wilks
II. Competition Policy in East Central Europe
Wettbewerbspolitik im Transformationsproze13 ........................................... 51
Jurgen Dieringer
1. Competition Law and Competition Control Offices
Problems of the Competition Policy in the Czech Republic ......................... 67
Josef BejCek
Das Ungarischc Wettbewerbsrecht im Lichte der EU-Beitritts-
verhandlungen .............................................................................................. 81
Barnabas Berke
Competition Law and Policy in the Czech Republic .................................. 111
Sonja Matochol'Q
Competition Policy in Slovakia .................................................................. 119
Jaroslav Kostalik
Experiences of the Hungarian Office of Economic Competition
with the Regulation of Transport, Energy and Telecommunication ........... 125
Tibor Szanto
2. Competition and Transport Policy
Competition Policy and Transport -The Polish Case ................................. 137
Wlodzimierz Rydzkowski
Competition Policy and Transport -The Hungarian Case .......................... 145
Katalin Tanczos
Wettbewerbspolitik lind Marktversagen:
Die Verkelu-swil'tschaft in der Siowakei ..................................................... 153
Heda Hansenov(l
Towards a New Regulatory Regime in the Transport Sector? ................... 167
Roland Sturm. Markus M MiilJer and Jiirgen Dieringer
Contributors .............................................................................................. 184
Governing Capitalist Economies:
Beyond the Regulation Debate
Roland Sturm and Afarkus M. Muller
Governments are not powerless in capitalist societies. They have their distinct
role vis-A-vis the economy. The market needs to be constructed, i.e. the very
rules and constraints governing its players' actions are to be ddined,
supervised and enforced. Of course, this is quite a ditTerent task if compared
to the role of governments in economies based on central planning, but, in
fact, the absence of detailed plalUling and the greater focus on the big picture
can make them even more powerful.
The instruments available to govern the (market-based) economy are
numerous. The state may, for instance, determine the basic rules, such as civil
and trade law, it may re-assign (and re-define) property rights, it can intervene
fiscally by means of redistribution, such as taxation and subsidisation of
various kinds, and finally, it can choose forms of sectoral, rule-based
interference. Competition policy, regulation, Keynesian welfare policies,
public enterprise or supply-side economics are prominent concepts often
referred to in order to describe one or two, and quite often a mix of several of
the above-mentioned aspects of state activity.
When analysing the re-discovery of competition and regulatory policies
in the Visegrad states, we first need to focus on the underlying concepts and
how they inten·elate. Only by considering conceptual boundaries, will one be
able to make sense of the ditTuse picture generated by the details of a cross
national perspective. Similarly important, competition policy and regulation
are intrinsically related to quite specific meanings of the "market". Depending
on which school of thought one adheres to, one will find different scenarios
for the future development of formerly non-competitive industries, such as
transport (railways in particular).
9
1. Regulation, Competition Policy and Ordnungspolitik: a tripartite
dichotomy?
It is necessary to differentiate between the concepts of regulation, competition
policy and Ordnungspolitik. All three concepts refer to government
intervention in a fundamental way into the sphere of free social interaction -
though with a heavy bias towards economic activities. It is hardly surprising
that the revelation of differences between regulation and competition policy
in particular has been the subject of scholarly debatel. As we will discuss
later, Ordnungspolitik represents a special German variation of
conceptualising the role of the state in the economy. As the theoretical debate
of regulation has always been less developed in Germany than it is in North
America, the "demarcation line" between the concepts of regulation and
Ordnungspolitik has yet to be drawn.
Wilcox once remarked that "regulation, at best, is a pallid substitute for
competition"2. This is one notion of regulation, which merely equates
regulation with competition policy. According to this line of
conceptualisation, competition policy might be categorised as horizontal
regulation, as it reaches beyond specific industries. On the other hand,
sectoral regulation refers to the regulation of telecommunication, utilities,
finance and so on. This kind of regulation aims nevertheless at the same goal
as competition policy, i.e. to provide substitute rules designed to enable
competition-like market processes. Sectoral regulation differs from horizontal
regulation only technically. It takes into account the characteristics of the
industry it is designed for.
One could certainly live with a formal distinction of (sectoral) regulation
and competition policy as mere variations of the same policy instrument. In
fact, it seems virtually impossible to differentiate between them. This would,
however, ignore an important normative element of competition policy which
might help illuminate the need for conceptual separation.
Competition policy is not restricted to forms of antitrust measures. It
affects all market processes and the behaviour of firms, especially when they
cooperate to produce inefficient market results, e.g. excessive prices. These
anti-competitive tendencies3 constitute an inherent problem for free
enterprise, hence for capitalism. The market provides incentives for finns to
adopt business strategies that aim at overcoming the uncertainties of the
Handler, Milton (1990): Regulation versus Competition, in: Handler, Milton: Antitrust in
Transition. Volume I. Ardsley-oll-Hudson: Transnational Juris, pp. 131-145. Handler is
concerned with the applicability of competition policy rules (antitru~t laws) to the
regulated industries.
Cited in Schmidt, Ingo (1996): Wettbewcrbspolitik und Kartellrecht. Eine Einfllhrung. 5.
Edition, Stuttgart
See also Armstrong, MarI'J Cowan, Simoni Vickers, John (1994): Regulatory Reform:
Economic Analysis and British Experience, Cambridge, Mass., p. 358.
10
