In many economic sectors – the digital industries being first and foremost – the market power of dominant firms has been steadily increasing and is rarely challenged by competitors. Existing competition laws and regulations have been unable to make markets more contestable. The book argues that a new competition tool is needed: market investigations. This tool allows authorities to intervene in markets which do not function as they should, due to market features such as network effects, scale economies, switching costs, and behavioural biases. The book explains the role of market investigations, assesses their use in the few jurisdictions where they exist, and discusses how they should be designed. In so doing, it provides an invaluable and timely instrument to both practitioners and academics.

Increased concentration and rising market power require new rules. Market investigations are necessary to complement existing regulations.

Both the European Commission and the UK authorities have legislative powers to examine a market that they feel isn't working properly in order to investigate if there are any competition and/or other problems that require remedying. Such powers include the ability to initiate and/or undertake market studies, market investigations or sector inquiries. Although the EC and UK investigatory regimes are not identical, noteworthy similarities exist. Both of them, of course, inevitably place a burden on the firms at the centre of the study/investigation/inquiry, as well as on the authorities themselves. Consideration of the relative usefulness or otherwise of these investigatory powers is therefore an extremely important exercise. This is true for the UK and EC authorities as well for the authorities of many more jurisdictions: following Modernisation and enlargement, many other Member States may be interested in introducing these sorts of tools into their own systems. Given this fact the need for a cost-benefit analysis concerning the use of these types of tools is arguably quite pressing. Furthermore, as new Member States attempt to develop such regimes it is imperative that they receive guidance, in the form of 'best practices' for example, on how, and, of course, when, to use those tools to their advantage. This short article aims to identify: (i) the main benefits (and costs) of market investigations and sector inquiries from an EC and UK perspective; and (ii) any methods or practices that will likely ensure the optimal realisation of the specified benefits. It is published in two parts: the first describes the main benefits (and costs) of market investigations and sector inquiries from an EC and UK perspective, as well as the legislative frameworks associated with such inquiries under both EC and UK law. This, the second part, will examine: (i) the similarities and differences between the EC and UK approaches to market investigations/sector inquiries; and (ii) 'best practices' that aim to maximise the benefits and minimise the costs of market/sector investigatory tools.

This online course will give you insights into important compliance topics.

Competition Law and Policy in the EU and UK provides a focused guide to the main provisions and policies at issue in the EU and UK, including topics such as enforcement, abuse of dominance, anti-competitive agreements, cartels, mergers, and market investigations. The book’s contents are tailored to cover all major topics in competition law teaching, and the authors’ clear and accessible writing style offers an engaging and easy to follow overview of the subject for course use. The fifth edition provides a full update for this well-established title, presenting and contextualising the impact of key cases, as well as changes to enforcement practice, and at a legislative and institutional level. There are new, separate chapters in this edition on private enforcement and UK market investigations to reflect the increasing significance of these key areas of competition law practice. Competition Law and Policy in the EU and UK integrates useful pedagogical features to help clarify topics and reinforce important points: chapter overviews and summaries highlight the key points to take away from each chapter to structure student learning discussion questions facilitate self-testing and seminar discussions of the major issues covered in each chapter, to help reinforce understanding of these topics further reading lists additional resources in order to guide research and develop subject knowledge a new glossary provides succinct explanations of competition law terminology, ideal for those studying the topic for the first time Clear, focused and student-friendly, this title offers a comprehensive resource for students taking competition law courses, and is supported online by updates to the law offered on Angus MacCulloch’s blog, Who’s Competing (http://whoscompeting.wordpress.com/).