The European Commission’s draft merger Guidelines adopt the advice of the Draghi report on European Union competitiveness to tailor competition law to promote goals that have traditionally fallen under industrial, trade, and national security policy. Conceptual ambiguity and the convergence of these policy areas risk undermining consumer welfare, entrenching incumbents, and opening regulation to business capture, write Annika Stöhr and Oliver Budzinski.
In new research, Ido Baum, Leszek Balcerowicz, Jakub Karnowski and Andrzej RzoÅ„ca assess how Poland achieved economic growth with a populist government. They argue that the economic success is misleading and Poland’s leading party passed harmful policies that affect the country’s long-term growth opportunities.Â
Chinese automotive manufacturers gain a competitive edge through laxer rules governing personal data protection and intellectual property. Oscar Borgogno and Giovanni Veronese argue that ensuring effective compliance with European law could help European manufacturers re-establish a level playing field while upholding EU constitutional values.
In new research, Janka Deli analyzes the relationship between the decline in the rule of law and trade. Contrary to democratic and developmental theory, she finds that declines in the rule of law, as seen in Hungary, Poland, and Czechia, do not lead to systematic reductions in trade with other EU partners. Â
The EU’s proposed Digital Omnibus to simplify digital regulation suggests repealing the 2019 Platform-to-Business Regulation. This poses a problem for the Digital Markets Act, which relies on the P2B-Regulation for how to define core platform services like search engines. Moving forward with the repeal will require legislators to renegotiate first the DMA, which is necessary anyways to adapt the law to the age of artificial intelligence, writes Jan-Frederick Göhsl.
In recent research, Christian Bergqvist argues that the European Union’s approach to wage-fixing, no-hire, and no-poach agreements reveals a lack of nuance that may end up harming competition.
Xavier Vives argues that to create firms that can compete on the international level, the European Union does not need to ease its merger regime or encourage market power. Rather, encouraging European market integration will allow firms to draw in investment and scale up their operations.
Max von Thun and Claire Lavin argue that the European Commission must revise its merger guidelines to emphasize how competition policy can protect goals beyond prices, including innovation, security, and democracy. This will create a more prosperous European Union.