FP7Reintegration grant2013–2018

ACLACL · Anchoring the Consumer: Legitimacy and Accountability in Competition Law

FP7 — People (Marie Curie Actions)

Duration
2013-11-01 → 2018-10-31
EU contribution
€100,000
Participants
1
Scheme
MC-CIG

Lines connect the coordinator with its partners.

Results in brief

Anchoring the Consumer: Legitimacy and Accountability in Competition Law

Competition policy claims to protect consumers but to what extent do consumers and citizens in general enjoy an effective outlet to contribute to the making of competition policy? In the light of this question, this project has investigated the moral and procedural legitimacy of competition policy. This critical and interdisciplinary project has brought together approaches from the fields of law, political science and economics together and it has relied on diverse, original methodologies, including empirical research in the form of semi-structured interviews with policymakers, critical discourse analysis and process tracing. As a result of this investigation, the project has found that citizens do not enjoy an effective outlet to contribute to competition policymaking, which jeopardises competition policy’s procedural legitimacy. On the other hand, particularly in the context of newly emerging gig markets, employers can strategically rely on competition rules to prevent effective coordinated worker action in search for better working conditions. This potentially causes negative consequences on equality and jeopardises competition policy’s moral legitimacy. In order to address the procedural legitimacy problem, inspired by the theory of deliberative democracy, the project proposed reforming the European Commission’s consultation regime to include platforms that inform direct and face-to-face deliberations between citizens. In order to address the moral legitimacy problem, the project proposed replacing the current “consumer welfare” approach to competition law with a more holistic “citizen welfare” approach that takes into consideration not only the welfare of consumers but also that of workers. These findings of the project also raise significant challenges for democracy in the field of broader economic governance beyond competition policy. At present the researcher is designing a larger and more ambitious research project with the aim of investigating similar questions in the broader field of economic governance. The findings of this project have made a significant academic impact: the project resulted in four substantial scientific publications submitted to and published in international peer reviewed journals of excellent reputation. In addition to organizing interdisciplinary and international conferences using the Marie Curie funding, the researcher has been invited to several international and interdisciplinary conferences to present the findings of the project. The findings of the project have also been of interest to policymakers. In addition to providing evidence to the UK government during the background phase of the Brexit referendum, the researcher was commissioned by the European Parliament to provide expertise to inform the Parliament on an important forthcoming legislation in the field of competition policy. In order to share the findings with the wider public, the researcher has organised and taken part in outreach events bringing together politicians, civil society organisations, academics and members of the public. She has written accessible blog posts and participated in radio programmes to discuss the findings of the project with the public. The results of the project has been disseminated to a diverse youth audience taking advantage of the University of Liverpool’s street law and widening participation programmes. Further information about the project and its findings can be found at the project’s website (http://firatcengiz.eu/about-the-project/). As she continues to work on democracy in economic governance, the researcher welcomes requests of information and collaboration from academic and non-academic organisations and members of the public.

Data: CORDIS, © European Union

Project objective

This proposal offers interdisciplinary, empirical and comparative research into the legitimacy and accountability problems facing EU competition law. EU competition law has gone through a significant reform process orchestrated by the European Commission. The Commission’s overarching goal in this process was to place ‘consumer welfare’ at the centre of the enforcement of competition rules. In contrast to the strong consumer focus in the design of substantive rules, consumers play a very limited role in the process of the making and enforcement of EU competition rules. Firstly, institutions representing consumer/citizen interests, such as the European Parliament and civil society, have been largely absent in the process leading to reforms. Secondly, the reforms increased economic technicality and the Commission’s administrative discretion in the enforcement of competition rules at the expense of judicial and parliamentary oversight. The limited ex ante consumer participation jeopardises the legitimacy of EU competition law, whereas the limited ex post judicial and parliamentary control impedes accountability. The voluminous law and economics literature of competition law focuses almost exclusively on substantive questions, turning a blind eye to legitimacy and accountability problems. Against this background, the proposed project will study the legitimacy and accountability problems in EU competition law and potential solutions for these problems using delegation theory as the main analytical framework. For methodology, the project will use empirical research of the role of consumer organisations and parliamentary committees, legal analysis of judicial review standards, and comparative research of the US antitrust regime that provided the main inspiration for the reform agenda. By filling an important gap in the literature, the project will contribute to developing mechanisms for firmly anchoring consumers in the making and enforcement of EU competition rules.

Original text from CORDIS.

Participants

Links

Data: CORDIS, © European Union