The drivers of effectiveness in competition policy

Abstract

This paper shows which institutional and policy characteristics drive the effectiveness of antitrust policy using cross-country data on the perception of effectiveness of competition policy. It concludes that antitrust cannot be successful in a vacuum. Effective policies are income related and tailored at the EU level in Europe. However, some details of competition policy design have a significant impact on policy results. Effectiveness is driven by having an independent antitrust authority with a final say on prohibitions of competition restrains. It is good to have leniency programs to enforce cartel prohibitions, and particularly to use an economic approach to judge dominance and abusive practices. The legal mandate on merger policy should focus on competition in markets rather than in broader defined public interests.