On 9 June, the Competition Authority hosted an international online conference on competition policy, under the heading „COVID-19: The risk of increased protectionism and weaker competition oversight?. Nearly 250 participants registered to take part, from over 40 countries. The conference was part of a series of meetings by the Competition Authority., „A conversation about competition“.
The conference served a twofold purpose. On the one hand, it was part of the Competition Authority's efforts to gather information and viewpoints that could be useful for policymaking in Iceland on economic and competition matters in the current economic climate. Furthermore, the conference was the Competition Authority's contribution to international cooperation among competition authorities, of which the Authority is a participant in close collaboration, including at the level of European and Nordic competition authorities.
The conference panel included five distinguished scholars in the field of competition policy. From the United States came Jonathan Baker, research professor at American University Washington College of Law and Fiona Scott Morton, professor of economics at the Yale University School of Management. From mainland Europe came Pierre Régibeau, Chief Economist of the Competition Directorate of the European Commission and Lars Sørgard, Director-General of the Norwegian Competition Authority. From Iceland, took part Gylfi Magnússon, Associate Professor of Economics at the University of Iceland.
The conference, among other things, outlined how the application of competition law has developed differently over the past decades. It was suggested that the lenient application of competition rules and the interpretation of competition law in the United States has led to increased concentration in various important markets, which has in turn fuelled growing wealth inequality. On the other hand, European competition authorities are considering reforms to competition rules and even greater consistency in their enforcement, in order to ensure the competitiveness of European countries.
A discussion was held on whether it would be sensible to grant companies protection from competition/competition oversight in their domestic market in order to better enable them to compete internationally (so-called 'national champions'). There was a general consensus among the attendees that this was not a sensible policy. On the contrary, a firm commitment to enforcing competition rules in the domestic market would foster stronger companies, which would be better equipped to compete internationally, while also better safeguarding the interests of consumers in the respective country.
There was also consensus that nation-states should avoid responding to the current economic downturn with increased protectionism and weaker regulation. It would be far more effective to harness the forces of competition for the recovery, thereby accelerating the rebuilding of the economy.
"*" indicates required fields
