ABSTRACT
This chapter establishes three points that provide a basis for further analyses in subsequent chapters. First, the European Commission possesses strong investigative and decision-making powers in EU competition policy, although its law enforcement system has been decentralised to a certain extent since modernisation reforms in 2004. Second, the four main areas of this policy (i.e. restrictive practices, abuse of dominance, mergers, and state aid) developed at different speeds and face different challenges; however, the European Commission is now equipped with strong legal measures, especially financial penalties, in all areas of this policy. Third, while EU competition policy originally focused on its internal aspects, a legal basis for extraterritorial jurisdiction has incrementally developed through case law. Furthermore, the European Commission started to proactively build external competition relations in the 1990s through bilateral and multilateral channels. Building on these findings, Chapters 3, 4, and 5 examine how exactly the EU is coping with the competition–competitiveness dilemma internally and externally.
