An economic analysis of topics in law regarding a broad interpretation of Article 101(3) TFEU, which considers sustainability

Abstract

The thesis deliberates how incorporating sustainability into the interpretation of Article 101(3) TFEU is considered consistent with the objectives of EU competition law and thus the legislative intent. The motivation behind the problem statement is an increasing international focus on sustainable development, which has incentivized the European Commission’s development of a sustainable growth strategy for Europe, herein an emphasis on sustainability in all EU policies and activities, including competition law.

The wording of the EU treaties, case law from the CJEU and the Commission, as well as other relevant legal sources, suggest that it is possible to adapt various objectives of competition law, which entails both strictly economic and more politically and socially oriented ones. Nevertheless, both the CJEU and the Commission argue that increased welfare is likely the fundamental objective, which may be expressed both strictly economically, through price and quantity consumed, but also through a broader set of social parameters, taking into account “quality of life”, as the CJEU and the Commission advocate for. Therefore, to assess the legislative intent, it is necessary to consider both economic and legal evaluations of the objectives of competition law.

The method of economic analysis of topics in law is utilized, where the first part of the deliberation, by applying relevant legal sources, demonstrates that a broad interpretation of the Article’s exemption provision, which allows for the inclusion of non-economic sustainability benefits extending beyond the relevant market, is in accordance with the legislative intent. Furthermore, the deliberation reveals that such a broad interpretation entails various economic implications for society, which affect economic efficiency and welfare. Although it is therefore complex to assess whether the broad interpretation actually aligns with the overall legislative intent, including the objective of increased welfare, the thesis’ comprehensive conclusion is that the broad interpretation and enforcement of Article 101(3) TFEU, which considers sustainability, is compatible with the legislative intent, and thus the legal and economic objectives of European competition law.