Japan, Philips and the Making of Europe’s Single Market, 1984-1994

Japanese competition has been a prime factor in overcoming European economic fragmentation. In the course of the 1980s Japanese technology - especially in consumer electronics - as well as Japanese business practices were key incentives for the establishment of Europe’s Common Market. The confluence of two distinct but mutually supportive non-state actors, the Philips/RTE lobby and the Action Committee for Europe (ACE) played a decisive role in setting the agenda for what is now known as the ‘EU Common Market’. The former campaigned for a pan-European single market, the latter for institutional changes needed to bring about its realization. The two lobbies were in close contact with each other. For Philips, the Japanese challenge was much more than a storm in a teacup. ‘Japan incorporated’ threatened its very existence, or so it was perceived. Seen in this light, fighting Japanese protectionism and campaigning for overcoming Europe’s economic fragmentation, were two sides of the same coin. It is a testimony to the quality of the company’s lobbying efforts on how successfully it managed to frame its private interests on both issues as Europe-wide continental interests.