competitionpolicy
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Implications for European institutions
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debated as part of the Green Paper review process. Commissioner Monti has noted that while there is no efficiency defence available to merging companies in the EU, neither is there an efficiency offence. In other words, the Commission will not approve an anticompetitive merger because it creates efficiencies. But neither will the Commission block a merger because of such efficiencies. By contrast, US regulators would allow such a deal if they believe the benefits of such efficiencies will be passed on to consumers. The US and EU also need to develop joint filing procedures for merger notifications. In addition to cutting down on the wasteful duplication of paperwork, such procedures would enable greater synchronisation in the review process and ensure that both jurisdictions were working from the same factual basis. They would then be better able to share and debate their analysis of the market and particularly to co-ordinate their proposals for remedies that are satisfactory to all sides. The agencies on both sides of the Atlantic also need to do more to coordinate their investigations against global cartels, which again will require the secure exchange of information and even joint collaboration in the analysis undertaken by both sides. In the meantime, the US administration under President Bush is adopting a more laissez-faire approach towards competition policy. This is shown most clearly in its response to the Microsoft case, where it is accepting softer remedies than once seemed probable. Perhaps paradoxically, the less interventionist approach in the US could strengthen the power of the EU, because DG Competition is now seen as the most demanding authority in terms of competition policy enforcement. Companies planning a merger will now concentrate on satisfying the authorities in Brussels rather than the US.
Effectiveness and a World Competition Organisation In addition to developing a close relationship with the US, the EU has also signed a competition policy co-operation agreement with Canada in 1999, and reached agreement in principle to do the same