A Market-Based Competition Enforcement Policy

This paper notes important features of current competition enforcement policy at EU level: reliance on fines, the theory of deterrence, leniency, the encouragement of compensation, decentralised enforcement, and the debate on criminalisation.

It examines the evidence on whether current competition enforcement policy is effective, and on whether deterrence is the correct theoretical goal, and suggests serious concerns on both issues. It proposes that the correct competition enforcement policy for the EU should be a market-based policy, which aims at maintenance of a balanced market and positively affecting the behaviour of actors before and after imbalances occur.

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