Posted by Bloomberg
Europe Needs Competition More Than Industrial Giants
By Editorial Board
Many of Europe’s politicians are far from impressed with the European Commission’s recent ruling against the proposed rail merger of Alstom SA and Siemens AG. Some are now calling for the EU to change its whole approach to competition policy. What they want instead is “industrial policy” — a strategy that dethrones competition as a goal and promotes European economic champions.
Competition Commissioner Margrethe Vestager was right to block the merger, and her critics are mistaken. The last thing Europe’s consumers need is EU firms with greater monopoly power, especially if they’re shielded from foreign as well as domestic competition. The best spur to economic growth and higher living standards in Europe is rivalry within the EU’s single market.
National competition agencies in Belgium, The Netherlands, Spain and the U.K. had criticized the Alstom-Siemens deal. But politicians in France and Germany took a different view. “Railbus,” as the doomed linkup had been christened, was touted as necessary to defend European producers from a predatory China — in the same way that Airbus was intended to counter U.S. dominance of the aviation industry. But the commission ruled that the merger would have dominated Europe’s rail market in signalling technology and high-speed trains, leading to higher prices and less innovation. And Vestager noted that China’s state-controlled giant CRRC is not a player in those EU markets anyway.
Featured News
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
EU to Scrutinize Telecom Italia’s Network Sale to KKR
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI