Cooperating on Competition in Transatlantic Economic by Chad Damro (auth.)

By Chad Damro (auth.)

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Additional info for Cooperating on Competition in Transatlantic Economic Relations: The Politics of Dispute Prevention

Sample text

In addition, in the 1987 Philip Morris case, the Article 85 [81 TEU] prohibition of agreements that prevent, restrict, or distort competition was also applied to merger activity (Kerres 1991, 14). Following from the ECJ's apparent support for its position, the Commission issued a draft merger control regulation in the same year as the Continental Can decision (1973). This was followed by three more proposals for merger legislation in 1982 and 1984. All of these proposals failed, largely due to resistance in the Council, especially from France, Germany and the United Kingdom (McGowan and Cini 1999, 179).

Zd at 614 (cited in Griffin 1999, 161). Historical Discord in Transatlantic Competition Relations 43 However, instead of exploring these post-1991 legal adjustments to Timberlane's interest-balancing approach, it is useful to address related developments regarding comity considerations in the US Congress and the competition agencies. The establishment of US extraterritoriality has not occurred exclusively through court decisions. For instance, in 1982, the US Congress weighed into the debate over extraterritoriality, passing a 'convoluted statute' (Fox 1997, 10), the Foreign Trade Anti-trust Improvement Act (FTAIA).

The regulation also established the Merger Task Force (MTF) within the Competition Directorate. This unit took action based on complaint or the initiative of the Directorate. While the MTF had primary responsibility for conducting merger reviews, the final decision on mergers remained with the Competition Commissioner and/or the full College of the Commission. Following modernization reforms in 2002-03 the MTF was disbanded, and its functions were incorporated into other, mainly sectoral units within the Competition Directorate.

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