Contents:

Executive Summary 1 Introduction 2 The Development of the Credit Union Movement in Ireland 3 Credit Unions and Accountability 4 An Analysis of the Financial Statements of Credit Unions in Ireland 5 An Analysis of the Other Information Contained in the Annual Reports of Credit Unions in Ireland 6 Accountability and the Annual Report: An Analysis of the Views of Major Stakeholders in the Credit Union Movement in Ireland 7 Conclusions Appendix 1: Contents of Annual Return by Jurisdiction Appendix 2: Interview Guide Appendix 3: Notes Appendix 4: References Introduction Background The Benefits of Competition Political Arguments for Competition Regulation versus Competition Non-Economic Views of Competition The Plan of the Book The Development of Competition Law Introduction Antitrust in the United States The Per Se Rule Vertical Restraints Market Dominance Enforcement Origins of the EU Rules Principal Features of EU Competition Law International Co-operation & Convergence The Evolution of Competition Law in Ireland Introduction The Origins of the 1953 Act The Restrictive Trade Practices Acts The Restrictive Practices Acts Regulation of Monopolies The Impact of the Restrictive Practices Legislation The Competition Act, 1991 The Competition (Amendment) Act, 1996 Shortcomings of the 1996 Act Conclusion Economic Views on Competition Introduction Models of Market Structure Alternative Economic Views of Competition Entry Barriers Game Theory & Oligopoly Implications of E-Commerce Vertical Restraints Evidence of the Benefits of Competition Conclusion Market Definition in Competition Analysis Introduction Traditional Economic Tests for Defining Markets The Distinction between Economic & Antitrust Markets The SSNIP Test Testing for Market Power Case Law on Market Definition Conclusion Appendix 5.1: The Critical Elasticity of Demand & Critical Loss Appendix 5.2: Alternative Measures for Ranking Substitutes j of Base Product I PART II NATIONAL & EU COMPETITION LAW Main Provisions of Irish & EU Competition Law Introduction Definition of Undertaking Prohibitions on Anti-Competitive Behaviour Civil Right of Action The Criminal Offences Powers of Investigation Trials & Evidence The Role & Functions of the Competition Authority The Operation of EU Competition Law The EU Commission’s Enforcement Powers Regulation 1/2003 – Reforming EU Competition Rules Private Enforcement of EU Law Section 4/Article 81: The Prohibition on Anti-Competitive Agreements Introduction An Agreement, Decision or Concerted Practice The Object or Effect of Restricting Competition Trade between Member States Appreciable Effect on Competition Cartels Tacit Collusion & Concerted Practices Facilitating Practices Some Horizontal Agreements may not be Anti-Competitive Vertical Restraints Exemption Block Exemptions Section 5/Article 82: Abuse of Dominance Introduction Economic Characteristics of Dominance Legal Definition of Dominance Market Share & Dominance Abuse of Dominance Joint Dominance Must a Dominant Firm Roll-Over? Competition Law & Intellectual Property Rights Introduction Economic Arguments for Protecting Intellectual Property Rights Limiting the Protection Afforded to Intellectual Property Rights Article 81(1) & Intellectual Property Rights Article 82 & Intellectual Property Rights Intellectual Property Rights & the Free Movement of Goods Article 81(1) & Licences of Intellectual Property Rights Technology Transfer Regulation R&D Joint Ventures Conclusion Competition Law & the Grocery Trade Introduction Economics of the Grocery Sector Possible Entry Barriers into the Grocery Trade The “Problem” of Buyer Power The Main Provisions of the Groceries Order The Case against Banning Below Cost Selling Arguments for Retaining the Ban Retail Planning Guidelines Conclusion Competition Law & Sports Introduction The Application of Competition Law to Sport The Economics of Sports Leagues Entry Barriers Sports Broadcasting Rights Ticket Sales Sports Equipment Mergers Competition Rules & the State Introduction Article 86 Article 10 Economic Effects & EU Treatment of State Aid Prohibition on State Aid Aids that are Compatible with the Common Market Aids that may be Compatible with the Common Market Procedures under Articles 88 & 89 Relationship between State Aid Rules & other Treaty Provisions PART III MERGERS The Economics of Merger Control Introduction The Rationale for Mergers Evidence on Merger Outcomes Economic Analysis of Mergers The Impact of Horizontal Mergers on Competition Unilateral Effects Co-ordinated Effects Joint Dominance Market Concentration Potential versus Actual Competition Entry Barriers The Role of Efficiencies The “Failing Firm Defence” Countervailing Power Vertical Mergers Conglomerate Mergers Portfolio Effects Remedies Conclusion Appendix 13.1: Formula for Estimating Post-Merger Price Increase in Differentiated Product Markets Ireland’s Merger Control Legislation The Evolution of Irish Merger Control Legislation The 1978 Act Mergers & the Competition Act, 1991 Merger Provisions of the Competition Act, 2002 Review Procedures The Substantive Test Exceptions to Exclusive Competence Appeal Procedures Mergers & Competition Law Conclusion The EU Merger Regulation Introduction Concentration Community Dimension Mergers outside the EU One-Stop Shop Principle Referral Back to Member States – the “German Clause” Referral Back to Member States – the “Dutch Clause” Notification of a Concentration The Commission’s Assessment Procedure Substantive Analysis Collective Dominance Simplified Procedure for Certain Concentrations Remedies Powers of Investigation Advisory Committee Third Party Interventions Appeal against Merger Decisions International Co-operation Reform of the Merger Regulation Conclusion PART IV REGULATION & COMPETITION The Economics of Regulation Introduction Market Failure Other Reasons for State Intervention Regulatory Failure Deregulation Conclusion The Economics of Public Utility Regulation Introduction Traditional Approaches to Regulating Public Utilities Deregulation of Public Utilities Basic Issues in Regulating Public Utilities Access Prices Output Prices “Cream-Skimming” & Universal Service Obligations Structural Issues Conclusion Communications Basic Characteristics of the Telecommunications Sector Evolution of Telecommunications in Ireland Development of Mobile Telephony in Ireland Liberalisation of Telecommunications Regulation of Telecommunications in Ireland Issues in Telecommunications Regulation The EU Communications Review Postal Services Conclusion Energy Introduction Electricity Deregulation of the Electricity Industry Problems in Electricity Liberalisation The Gas Industry Conclusion Transport Introduction Bus Transport Road Freight Railways Taxis Air Transport Conclusion Competition in Other Regulated Sectors Introduction Financial Services Professional Services Pharmacies Public Houses PART V CONCLUSIONS Assessment Introduction Overview of the 2002 Act Price fixers Should Go to Prison Civil Fines Not the Answer Competition Law Enforcement Lacks Credibility Greater Political Commitment to Competition is Needed Further Regulatory Reform is Required Who Regulates the Regulators? Improving Regulation Appeals Regulators Need Incentives Too EU Competition Law Reform EU Liberalisation Conclusion Bibliography Index Figures 3.1: Summary of Competition Authority Enforcement Activity under the 1996 Act 4.1: The Prisoners’ Dilemma 4.2: Strategic Choices Under Duopoly 5.1: Selected Household Fuel Prices 5.2: Critical Residual Demand & Loss for 5% Price Increase 8.1: Exclusive Dealer Numbers & Market Shares 10.1: Concentration in the Irish Retail Grocery Sector (2003) 10.2 Grocery Outlets by Category 13.1: Irish Petrol Prices (1995) 18.1: Growth of Mobile Phone Penetration in Ireland 18.2: Percentage Shares of Mobile Telephony Market 18.3: Liberalisation of Telecommunications Services in Ireland 18.4: Summary Telecommunications Statistics 18.5: Letter Post Items Delivered (millions) 19.1: Fuel Mix of ESB Installed Generating Capacity 19.2: Percentage Distribution of Generation Output in England & Wales 19.3: Average Real Electricity Prices in Ireland 19.4: ESB Productivity 20.1: Bus Éireann Financial Statistics 20.2 Passenger Numbers on UK Local Bus Services: Annual Average % Change 20.3: Percentage Distribution of Road Freight Tonnage 20.4: Statistics of Rail Traffic 20.5: Details of Rail Freight Traffic 20.6: UK Railway Performance 20.7: Irish Direct Air Passenger Movements 20.8: Total Passenger Movements at Main Irish Airports 2001 21.1: Estimated Irish Banking Percentage Market Shares 1998 21.2: Irish Deposit Percentage Market Shares 2001 21.3: Mortgage Margins 21.4: Net Interest Income as a Percentage of Bank Grossm Income 21.5: Gross Margins of Public Houses, Various Years