Question

Discuss about The problem of monopolization of the market and anti monopoly policy in France

Answer 1

Conceptions of competition in France are the object of wide debate. Some solid progress toward reform have been
achieved in France. But competition law is still characterised by conflicting purposes and a dual institutional structure
that can be a source of difficulties. Introducing competition into traditionally monopolised sectors is proceeding,
deliberately. The risks of cross-subsidy distortion are well understood in principle. Decisions of the Conseil de la
concurrence and the sectoral regulators have tried to support competitive neutrality, to the extent that can be done in
the absence of real structural separation. European-level developments motivate these changes, and France’s
regulatory bodies recognize that the relevant markets are becoming continent-wide. France has not chosen the
solution of complete structural separation between historic infrastructure monopolies and competitive enterprises in
order to eliminate the incentive and capacity to distort competition through cross-subsidies. Instead, France prefers to
apply behavioural controls by applying the abuse of dominant position provisions of competition legislation. In
wholesale and retail distribution, notably, competing conceptions of competition appear. Rules about discrimination,
unfair competition, and pricing are not unknown in other countries, but they are not usually found where competition
policy is defined coherently and effectively. In France, businesses have learned how to operate within this incentive
structure to develop relevant marketing strategies, from small shops to the grandes surfaces. But the cost of adhering
to these complex constraints, many of which are parts of what is considered to be the competition law, may tend to
protect incumbents from competition.
The structure of the competition policy bodies reflects these complexities. Principles of the law follow the common
European standards, and the method of applying it is well suited to implement the European Commission's new
approach of decentralised ex post enforcement through national institutions. The Conseil de la concurrence has been
the model for an independent decision-making agency in France, and it works well with the other independent,
sectoral agencies. The Directorate for competition and consumer affairs in the Ministry of Economy, Finance, and
Industry is the other authority responsible for implementing competition policy, with a large staff, in part because of
its monitoring duties. The co-existence of two enforcement bodies might be a source of synergies, but it also carries
risks of friction. Some aspects of the structure are problematic, such as the fact that the Council, which is an
independent decision-making body with regard to sanctions, has little discretion about managing its case-load, which
leads to delays in reaching final decisions., In addition, the merger decision process appears to leave much to
Ministerial discretion. Some others are promising, such as providing for appeals from independent regulators and
competition decisions to the same general jurisdiction Court of Appeal.