The Role of Economics in EU Competition Law: From Monti's Reform to the State Aid Modernization Package

This paper considers the role of economics in EU competition over the last fifteen years. It offers and personal, and thus subjective, account of policy developments and doctrinal debates. First, I explain the reasons why the European Commission decided to incorporate PhD economists to its ranks, describe the evolution of the Chief Competition Economist Team (CET) at Directorate General for Competition of the European Commission (DG Comp), and document the impact of the creation of the CET for the economic consulting industry. Then, I review the contributions made by the CET economists and economic academics and consultants to the development of EU competition law. I identify those areas where the law does not reflect current economic thinking and those where, on the contrary, the enforcement of competition law is well grounded in economics. I conclude with a brief account and a critical assessment of the views of economists and non-economists who have recently criticized the use – in their opinion abusive – of economics in EU competition law matters.