Working Group on Competition Economics discusses electricity markets, high-resolution data analysis and platform economics

30.05.2018

On 30 May 2018 the Working Group on Competition Economics held its second meeting in Bonn where Bundeskartellamt staff members and economic researchers discussed theoretical and empirical concepts used in the authority's case practice. The agenda of the meeting included the planned guidance paper by the Bundeskartellamt and the Bundesnetzagentur (Federal Network Agency) on the control of the abuse of a dominant position in electricity generation, data-driven market definition as demonstrated in the example of cement markets and exclusivity agreements in the ticketing platforms sector.

Andreas Mundt, President of the Bundeskartellamt: "The role played by economic science in the application of competition law is more important than ever before. This is why we seek scientific expertise when dealing with key economic issues in our practical work.

After the phase-out of nuclear power and the shut down of coal-fired power plants, the withholding of electricity generation capacity could again become a highly relevant issue in the future. The guidance paper is meant to provide clarification to remove uncertainties voiced by electricity producers. First of all we will ask renowned competition economists to take a close look at our concepts.

In the area of merger control it would not be feasible to refine market definition, which is a key area of focus of our work, without using modern economic methods. In the Schwenk/Opterra case, for example, the approx. 17,000 supply relations of all the German cement plants have been analysed. Such high-resolution data analyses enable us to gain profound and precise insights into competition conditions that are heterogeneous in their geographical dimension.

Another sector where it is very important to remain in ongoing discussions with economic researchers is the digital economy, in particular where multi-sided markets are concerned. This involves conceptual issues arising from the theories of harm we develop."

The Working Group on Competition Economics was founded in October 2017. The academic participants in the group's second meeting were: Professor Dr Stefan Bühler (University of St. Gallen), Professor Dr Tomaso Duso (German Institute for Economic Research, Berlin), Professor Dr Veronika Grimm (Friedrich Alexander University Erlangen-Nuremberg), Professor Dr Justus Haucap (Düsseldorf Institute for Competition Economics), Professor Dr Roman Inderst (Goethe University Frankfurt), Professor Dr Wolfgang Kerber (Philipps University Marburg), Professor Dr Martin Peitz (University of Mannheim), Professor Dr Markus Reisinger (Frankfurt School of Finance & Management), Professor Dr Ulrich Schwalbe (University of Hohenheim) and Professor Dr Christine Zulehner (University of Vienna).

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