European Competition Policy and its potential

1
European Competition Policy and its potential

• Names Panagiota Georgiou
• Zoi
  Dimitriou
• Denis
  Thornber

2
Introduction

• Competition policy covers the different ways, in
  which the competition authorities of national and
  also the European Union seeks to make markets
  work better, and achieve a higher level of
  economic efficiency and economic welfare.

3
The aim of competition policy

• Make the markets work better and to contribute
  towards increased efficiency and competitiveness
  of the Cyprus economy, within the European Union
  single market.
• To ensure a wider consumer choice in markets for
  goods and services
• Effective price competition between suppliers
• To investigate claims of anti-competitive
  behaviour within markets that might have a
  negative effect on consumer welfare.

4
The four pillars of competition policy

• Antitrust and cartels
• Market liberalisation
• State aid control
• Merger control

5
History of Competition Policy

• The roots of competition policy on the
  international level can be found in the
  nineteenth century when the Sherman Act was
  introduced in the United States of America as the
  first legislative act, which was intending to
  regulate the monopolistic behaviour of the
  companies

6
History of Competition Policy

• The real history of competition law and policy in
  the European Union started in 1957 when the
  Treaty of Rome was created and signed
• Art. 85 of the Treaty prohibited cartels of any
  kind, as well as restrictive practises that could
  harm competition.
• Art. 90 regulated state monopoly,
• Art. 92 prohibited state aid which could harm
  competition.

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History of Competition Policy

• European Commission is the one that is given the
  power to investigate and give fines when
  competition policy is not used properly by
  governments and companies.
• Each member state has its own competition
  authority that is responsible for enforcing
  competition legislation at the national level.

8
Benefits of Competition

• Competition is a process of rivalry between
  firms, each seeking to win customers business.
• This rivalry may happen in a number of ways
• Some firms compete on price
• Some focus on developing the quality of existing
  products and/or services
• Others use their pioneering or research skills to
  create new products and/or services.

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Benefits of Competition

• This rivalry ensures that no part of the market
  remains unexplored
• Prices will typically be offered at an efficient
  level of costs, a diversity of product offerings
  will come in to the market that matches the
  diversity of consumer needs and tastes, and the
  rate of innovation will be high.

10
Cyprus Commission for the Protection of
Competition.

• The Cyprus Commission for the Protection of
  Competition(C.P.C.) was established in 1990 with
  the enactment of the Protection of Competition
  Law 207/89 and its the authority, responsible
  for the protection of competition, without having
  any interference by the government.

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Cyprus Commission for the Protection of
Competition.

• In 2000 the C.P.C. changed its internal
  structure, which helped it become more flexible
  and more focused on the enhancement of the
  foundations of the competition culture at a
  national level.
• The public acknowledged the efforts made by the
  C.P.C. and started cultivating in its everyday
  life that, in a healthy competitive market the
  consumer enjoys goods at lower prices, improved
  quality and the fruits of technological
  improvements.

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Cyprus Commission for the Protection of Competion.

• The C.P.C., even before the 1st of May 2005 was
  an active member of the European Competition
  Network(ECN)
• Through the ECN there is constant information of
  the pending investigations and decision of all
  the competition authorities in the member states
• Our obligations as a member state are hampered as
  a result that our administrative capacity remains
  the C.P.C.s main weakness.

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Conclusion The Competition Policy and its
Potential in Cyprus.

• Since the implementation of the European
  Competition Policy, into the Cyprus Law, it has
  opened the market up for the Cypriot consumer
  public making it possible to choose products from
  a variety of options. It has also stopped the big
  firms from being able to take advantage of the
  public and of smaller firms,

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Conclusion The Competition Policy and its
Potential in Cyprus.

• This policy has a great potential in Cyprus
  because of many firms/industries wanting to open
  offices, or shops in Cyprus. Also with the
  potential of the finding of gas of the coast of
  Cyprus, this will open up the energy market since
  most worldwide energy suppliers use gas, or
  renewable energy sources to create electricity.