Competition policy in transition: how can companies adapt?

Competition policy is based on two fundamental principles: the need for free competition to stimulate markets and promote innovation, and the vulnerability of this competition, which requires regulation to prevent abuse and excessive concentration. At European level, it is based on three main areas: the fight against anti-competitive practises, merger control and the regulation of state aid. It must also complement other public policies such as industrial and commercial policy and adapt to economic developments, particularly in areas such as digital technology and sustainable development. It plays a crucial role in maintaining a competitive market but is not enough on its own to ensure the competitiveness of an economy.

In this complex regulatory context, businesses nevertheless have several tools at their disposal to turn these constraints into strategic advantages:

• Avoiding anti-competitive practices (abuse of dominant position, cartels) to steer clear of heavy financial, behavioural, or structural penalties.
• Calibrating their use of public aid to ensure it falls within categories exempt from notification to the European Commission, thus reducing legal risk.
• Structuring cooperation agreements (vertical or horizontal agreements) according to the market share thresholds and conditions set by European exemption regulations and guidelines.
• Directly consulting competition authorities (for instance, through France’s “open door” policy) to obtain guidance on the compliance of their projects with competition law.
• Incorporating corrective measures (structural or behavioural) during merger operations to secure approval from competition authorities.
• Utilising legal instruments provided by the EU (anti-dumping, anti-subsidy, safeguard measures) to defend against unfair trade practices from foreign competitors.

Read the full version of this article in the issue #147 of the Revue Lamy de la concurrence , March 2025 (available in French).