GCR INSIGHT GCR COMPETITION ECONOMICS HANDBOOK 2020
Published in association with:
Cornerstone Research Copenhagen Economics
COMPETITION ECONOMICS COMPETITION Berkeley Research Group E.CA Economics HANDBOOK 2020 HANDBOOK Competition Economics Handbook 2020
A Global Competition Review Special Report
Reproduced with permission from Law Business Research Ltd This article was first published in November 2019 For further information please contact [email protected] Competition Economics Handbook 2020
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This publication is intended to provide general information on competition law, economics and policy. The information and opinions that it contains are not intended to provide legal advice, and should not be treated as a substitute for specific advice concerning particular situations (where appropriate, from local advisers).
© 2019 Law Business Research Limited ISBN: 978-1-83862-221-3
Printed and distributed by Encompass Print Solutions Tel: 0844 248 0112 Competition Economics Handbook 2020
Published in association with:
Cornerstone Research
Copenhagen Economics
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E.CA Economics CONTENTS
Albania...... 1 Estonia...... 43 Emmi Martikainen and Anssi Kohonen Algeria...... 3 Copenhagen Economics
Argentina...... 4 European Union...... 46 Claus Kastberg Nielsen, Adina Claici and Armenia...... 6 Federico De Michiel Copenhagen Economics Australia...... 11 Fiji...... 53 Austria...... 14 Finland...... 54 Azerbaijan...... 16 Emmi Martikainen, Anssi Kohonen and Kalle Kantanen Copenhagen Economics Barbados...... 17 France...... 58 Belgium...... 18 Germany...... 60 Bosnia and Herzegovina...... 20 Hans W Friederiszick, Simone Kohnz and Rainer Nitsche Brazil...... 21 E.CA Economics
Bulgaria...... 24 Greece...... 67
Canada...... 26 Hungary...... 68
Channel Islands...... 29 Iceland...... 70
Colombia...... 30 India...... 71
Croatia...... 32 Indonesia...... 72
Cyprus...... 34 Ireland...... 74
Czech Republic...... 35 Israel...... 76
Denmark...... 36 Italy...... 78 Henrik Ballebye Okholm and Torben Thorø Pedersen Copenhagen Economics Jamaica...... 79
Egypt...... 41 Japan...... 81
El Salvador...... 42 Kenya...... 83
iv Competition Economics Handbook 2020 CONTENTS
Korea...... 86 Russia...... 123
Latvia...... 87 Serbia...... 126 Emmi Martikainen and Mindaugas Cerpickis Copenhagen Economics Seychelles...... 128
Lithuania...... 91 Singapore...... 130 Mindaugas Cerpickis and Emmi Martikainen Copenhagen Economics Slovakia...... 131
Luxembourg...... 94 Slovenia...... 133
Malaysia...... 95 South Africa...... 134
Malta...... 97 Spain...... 136
Mauritius...... 98 Swaziland...... 138
Mexico...... 100 Sweden...... 139 Karl Lundvall and Mattias Almqvist Montenegro...... 102 Copenhagen Economics
Netherlands...... 103 Switzerland...... 144
New Zealand...... 105 Tunisia...... 146
North Macedonia...... 107 Turkey...... 147
Norway...... 109 Ukraine...... 150 Henrik Ballebye Okholm and Erik Lindén Copenhagen Economics United Kingdom...... 152 Peter Davis, Vivek Mani, Can Celiktemur and Pakistan...... 114 Vikram Kumar Cornerstone Research Peru...... 115 United States...... 160 Philippines...... 117 Henry J Kahwaty and Cleve B Tyler Berkeley Research Group Poland...... 118 Zambia...... 166 Portugal...... 120 Zimbabwe...... 168 Romania...... 121
www.globalcompetitionreview.com v FOREWORD
Global Competition Review is delighted to publish this thirteenth annual edition of the Competition Economics Handbook.
With economics at the centre of competition law, this handbook identifies the issues that antitrust economists are tackling today. The book’s comprehensive format provides contact details for competition agencies’ economists in over 70 jurisdictions. A Q&A format illustrates how the advisers are organised and their input into the regulation and enforcement process.
Much of the information has been provided by the agencies themselves and we are, as ever, grateful for all their cooperation.
The Competition Economics Handbook 2020 is one of five special reports included in a Global Competition Review subscription each year, alongside four issues of the magazine, a survey on a four-year rotation (Corporate Counsel published in January 2019 and 40 Under 40, to be published in January 2020) and two signature surveys, Rating Enforcement and The GCR 100.
We would like to thank all those who have worked on the research and production of this publication.
The information listed is correct as of October 2019.
Global Competition Review London October 2019
vi Competition Economics Handbook 2020 LATVIA
Overview
Emmi Martikainen and Mindaugas Cerpickis Copenhagen Economics
The Competition Council of Latvia (CC) currently as part of argumentation and evidence. The court can employs two economists who provide economic sup- itself appoint economic experts, to assess the economic port during case investigations and are involved in sec- analysis presented by CC and the parties. However, tor inquiries. The role of economic analysis seems to the lack of specialised, local economists trained spe- vary depending on the type of case and investigation; in cifically in competition economics was considered a merger control and in sector inquiries, economics has barrier to the use of more economic reasoning by some played an increasingly larger role in recent years. The interviewees, both in investigations and in court. number of mergers that move to Phase II investigation is still quite small. Merger prohibitions are very rare Abuse of dominance cases are often settled and unlike in many other jurisdictions, the CC seems Abuse of dominance investigations are relatively rare to accept behavioural remedies. Abuse cases are often in Latvia. The competition authority seems to consider settled with the parties, meaning that there are few it more efficient to settle cases early rather than to con- follow-on damages cases. The priority of the CC seems duct full inquiries that may lead to fines or taking cases to be bid-rigging in public procurement and govern- to court. In 2017, the CC concluded six negotiation pro- ment activity in market operations. However, the role cedures, five of which concerned abuse of dominance. and importance of economic analysis in these cases is In 2018, the CC imposed a fine in an abuse of dominance limited. case in the waste sector. The AKKA/LAA decision This article is based on interviews with prominent concerning excessive pricing in copyrighted music was competition law practitioners from the law firms cited among the interviewees as a significant abuse of Cobalt, Ellex, Sorainen and TGS Baltic as well as with dominance decision from recent years. the economist team of the Competition Council of In terms of anticompetitive agreements, the CC Latvia (CC). has adopted several decisions, for instance, concerning public transport, the construction sector and public Role of economic analysis is more pronounced in procurement. The CC seems to be fairly concerned merger investigations about cartels in relation to public procurement as There are relatively many merger filings per year and well as government (municipalities’) involvement in the number of Phase I notifications has increased by market operations. Amendments in competition law more than 50 per cent in 2017–2018. However, only a taking place in 2020 gives the authority more power to few mergers move to Phase II investigations. Some of act against public administrative bodies if they distort the interviewees saw economics having a more and competition. The role and importance of economic more pronounced role in merger investigations. For analysis in bid-rigging cases seems, however, to be example, recent mergers in the grocery retail sector limited. have involved party appointed economists and a more economic-based methods from the CC (eg, to define Market inquiries rely on economic analyses relevant geographical and product markets). Two retail The economists at the CC also contribute to the market mergers were prohibited by the CC and are currently inquiries. In recent years, there were at least three pending in court. Prohibiting a merger is, however, rare no-table market investigations: the vehicle inspection in Latvia: the two aforementioned prohibitions are the market, the pharmacies market and the market for only prohibitions during the past decade. waste management. The vehicle inspection market The CC has a high success rate in court. Some inter- inquiry was mentioned as an example where economic viewees postulate that the court might have become analysis played an important role, including impact more willing to accept economic evidence presented analysis of deregulation on prices and service quality.
www.globalcompetitionreview.com 87 LATVIA
Emmi Martikainen Mindaugas Cerpickis Copenhagen Economics Copenhagen Economics
Emmi Martikainen is an economic consultant at Mindaugas Cerpickis acts as an economic consultant Copenhagen Economics helping clients with issues at Copenhagen Economics, specialising in helping where competition law and economics intersect, clients in competition and dispute resolution cases. including a wide variety of merger and abuse of Cerpickis has worked on a number of dispute, merger dominance cases, damage estimations and compli- and abuse of dominance cases, including cases ance issues. She holds a PhD in economics from the where sector regulation and competition economics University of Turku and has taught microeconomics intersect, for example, in postal and telecom sectors. and competition economics in Finnish universi- Before joining Copenhagen Economics, he worked as ties. Before joining CE, Martikainen worked as an a management consultant. economist at the Finnish Competition and Consumer Authority.
Copenhagen Economics Helsinki Copenhagen Economics is one of the leading economic consultancies Hämeentie 11 in Europe. Founded in 2000, we currently employ more than 90 people 00530 Helsinki operating from our offices in Copenhagen, Stockholm, Helsinki and Finland Brussels. Based on established research methods and in-depth sector Tel +358 40 016 3950 knowledge, we help our clients make better choices in their political and commercial reality. Our senior team provides pragmatic solutions Langebrogade 1 (entrance B3) founded in economics to law firms, private companies, regulators, and DK-1411 Copenhagen policy makers all over the world. We are particularly dedicated to 12 Denmark service areas, including competition, dispute support, digital economy, Tel: +45 2333 1810 intellectual property valuation and transfer pricing, and postal and delivery. Global Competition Review lists Copenhagen Economics among the top Emmi Martikainen 20 economic consultancies in the world and has done so since 2006. [email protected]
Mindaugas Cerpickis [email protected]
www.copenhageneconomics.com
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