International Journal of Communications Law & Policy

CONVERGENCE IN EUROPEAN COMMUNICATIONS - A CASE STUDY ON THE RELATIONSHIP BETWEEN REGULATION AND COMPETITION (LAW)
By Paul Nihoul

Download the Paper in PDF Format: IJCLP Web-Doc 1-2-1999

Abstract

Convergence is being realised progressively between economic sectors which were previously separated - broadcasting, information and telecommunications. A rapprochement may be observed among the technologies and industries involved, but we are still wondering about how convergence could be shaped by the law. Questions have been raised about the respective roles which could be attributed to Regulation and Competition (law). Often, these interventions are clearly distinguished in the literature. Regulation is seen as sector-specific whereas Competition (law) would be more general. That feature - it is said - implies that Competition (law) would probably offer the best tool to govern the markets, as a general intervention is apparently better designed to cope with a converging world where specificities should be removed.

Competition (law) is furthermore associated with an efficient allocation of resources. That objective - it is alleged - may only be obtained in an environment where economic freedom is guaranteed. Freedom should thus be protected from private behaviour, in particular undesirable use of market power by undertakings. Public interventions should also be restrained to the lowest possible levels. Intervention should only be tolerated where it is demonstrated that market interaction would not realise spontaneously the objectives which are sought by public authorities. These objectives should be defined in a rather restrictive manner, not to overburden markets with goals incompatible with an efficient allocation of resources.

That conception will be analysed in the present article. The perspective is not to analyse in an abstract manner the relationships which may exist between Regulation and Competition (law). It is rather to attempt a clarification on some aspects of the relationship between these concepts. The analysis will be carried out in the light of the telecom rules adopted by EC authorities during the last decade - which is why reference is made to a case study in the title.