The extraterritorial reach of EC competition law

Abstract

This dissertation deals with the extraterritorial application of Community competition rules. The introductory chapter marks out the developments that have taken place in the business world in these last couple of decades, with special reference being made to liberalization and globalization. Competition law must cater for this new scenario in which it functions, particularly due to the increased conflicts of jurisdiction that may arise. The second chapter starts off with the definition of jurisdiction, and the distinction between legislative and enforcement jurisdiction. It then embarks on an analysis of the different bases of jurisdiction on which states may found their jurisdictional competence. A discussion as to the suitability of applying these jurisdictional principles to competition law ends this chapter. The third chapter deals with the notion of extraterritoriality in the context of Articles 81 and 82 of the EC Treaty. It embarks on a discussion on the notion of extraterritoriality. Special reference is made to the criteria of 'effect on interstate trade' in Article 81 and of 'substantial part in the common market' in Article 82. The application of these criteria extraterritorially is then dealt with in detail, with special reference being made to the economic entity doctrine, the implementation doctrine and the effects test. The fourth chapter stars off with a brief background to the current Community control of international mergers. This leads to a detailed analysis of the notion of extraterritoriality in respect of the Merger Regulation. A distinction is drawn between the Commission's power to compel notification and to prohibit mergers. The chapter then concentrates on the application of the Merger Regulation in practice, focusing in detail on the caselaw of the Community courts in this regard. The last chapter deals with the internationalization of competition law. It examines international cooperation as it has evolved throughout the years, with special reference being made to the bilateral agreements concluded by the Community with the United States. It ends with a recommendation for the establishment of an international competition law code within the WTO framework.