English
 
User Manual Privacy Policy Disclaimer Contact us
  Advanced SearchBrowse

Item

ITEM ACTIONSEXPORT

Released

Paper

Die verfassungsrechtliche Zulässigkeit eines Entflechtungstatbestandes im Gesetz gegen Wettbewerbsbeschränkungen als ultima ratio zur Beseitigung eines Wettbewerbsversagens

MPS-Authors
/persons/resource/persons183106

Engel,  Christoph
Max Planck Institute for Research on Collective Goods, Max Planck Society;

External Ressource
Fulltext (public)
There are no public fulltexts stored in PuRe
Supplementary Material (public)
There is no public supplementary material available
Citation

Engel, C. (2007). Die verfassungsrechtliche Zulässigkeit eines Entflechtungstatbestandes im Gesetz gegen Wettbewerbsbeschränkungen als ultima ratio zur Beseitigung eines Wettbewerbsversagens.


Cite as: http://hdl.handle.net/11858/00-001M-0000-0028-6D9A-C
Abstract
Triggered by the concentration process in the electricity and gas markets, the land of Hesse proposes to give the German cartel office power to divest dominant firms or oligopolies if this is necessary to restore competition. The paper shows that the reform would be in line with constitutional law, and with freedom of property in particular. Depending on how divestiture is brought about, it would interfere with this basic freedom. It would however not amount to taking. In practice, the main effect would be through bargaining between the divested company and the cartel office. This poses problems under rule of law, but these problems are not insurmountable. The main justification for the reform is the almost total failure of interventions to combat the abuse of dominant positions. In the US, divestiture has not always been successful. But close scrutiny of the American experiences demonstrates that the tool is sufficiently effective to meet the constitutional standard. If divestiture is brought about by forcing the firm to sell entities or assets, the necessary compensation comes from the price it receives from the buyer.