Why does the EC treat markets as national when its own legislation has created a single market – and particularly in gas – when 60% of gas crosses national borders?
Legislation alone does not create a common market. When it comes to market definitions, it is always important to assess the markets on their own merits. The EC takes a case-by-case approach to defining the geographic and product dimensions of the relevant market. Important merger decisions, such as the EDP/ENI/GDP (see IP/04/1455) decision are referred to in the Preliminary Report. As highlighted in the Report, the definition of the relevant market must take into account the different degrees of market developments in Member States, such as the level of openness to competition. Other factors include the difference in prevailing price levels, the differences in market design and the availability of cross border capacity. The report underlines the fact that a single competitive European energy market has not yet been achieved and that there is little cross border trade between the vertically integrated national incumbents.
Related Questions
- Why does the EC treat markets as national when its own legislation has created a single market - and particularly in gas - when 60% of gas crosses national borders?
- Does Chevron support national mandated legislation or regulation around greenhouse gas reductions?
- Why are market openings particularly volatile, especially for stocks trading in fast markets?
