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Competition Law and Economic Theory

Publication at Faculty of Law |
2019

Abstract

Economic concepts analyze the market structure and behavior of market players. Classical and neoclassical economics, in its concept of the invisible hand of the market, described the ideal of perfect competition and market reality in the form of imperfect competition in the degree of monopolistic competition, oligopoly and monopoly.

Although they point to the distortion of the oligopolistic and monopoly market, the state is only a general guarantor of the functioning of the company, it is neither an active market player nor an active regulator of competition. The Schumpeterian theory also does not foresee the state's regulatory function.

Monopolies are not distortions of the market structure, but are the bearers of innovative progress. The Ordoliberal German School sees the democratic state as an integral part of economic order protection through the legal and institutional framework, and ordoliberal views predominantly shaped European competition law as contained, inter alia, in EU primary law and referred to in Articles 101 and 102 TFEU.