The Evolution of the European Competition Regime

The history of European competition policy makes a truly fascinating story, involving the incremental emergence of a body of case-law, close-knit inter-institutional relations, and both institutional passivity and institutional activism on the part of the Commission’s Directorate-General for Competition. Moreover, there is a broader tale to be told, involving DG Competition’s reaction to and interaction with its external political, legal and economic environment. In charting the chronological development of European competition policy from the early 1950s to 2007, this chapter highlights both the internal dynamics of the policy and the exogenous factors that have influenced its effectiveness over the last six decades. The chapter begins by examining the origins of competition policy, then introduces briefly the legal provisions of the first European competition policy, that of the European Coal and Steel Community (ECSC). The rest of the chapter concentrates on the European Economic Community (EEC) rules, first identifying the legal provisions that have shaped the policy, and then providing an overview and analysis of its evolution. The chapter concludes by focusing on the revitalization of the European competition regime over the course of the 1980s; finally, it summarizes more recent developments and priorities since then.