Working Paper Series Modernization of European Antitrust Enforcement: The Economics of Regulatory Competition Modernization of European Antitrust Enforcement: The Economics of Regulatory Competition THE MODERNIZATION OF EUROPEAN ANTITRUST ENFORCEMENT: THE ECONOMICS OF REGULATORY COMPETITION

Ben Depoorter, Francesco Parisi, Yale Law, Ben Depoorter, Francesco Parisi, Ben Depoorter, Francesco Parisi
unpublished
In this article we analyze the expected effects of regulatory overlap in European competition law resulting from Regulation 1/2003. Drawing upon recently developed economic theories of regulatory competition, our model foresees a number of qualitative adjustments resulting from this reform. On one hand, the direct applicability of the exemption provision should increase the overall amount of exemptions. On the other hand, a decentralized system permits private litigants' forum shopping, and
more » ... m shopping, and parallel enforcement by multiple national competition authorities will drive up the number of infringement findings. Although the precise direction of substantive competition law is unclear, the overall effect is higher levels of regulatory activity. This entails not only greater administrative costs but also suggests increased transaction costs for doing business in the post-Regulation
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