Implications of Competitive Neutrality for Competition Agencies: a Process Perspective

This paper sketches the implications of the competitive neutrality principle for competition agencies. The discussion is framed in a process perspective (I). The paper opens with a review of the core enforcement scenarios where a State-related firm is defendant (II) or complainant (III) in competition proceedings. It then addresses the situation in which the State is a third party to competition proceedings (IV). The paper in turn discusses theoretical de-biasing options for competitive neutrality-minded competition agencies (V). It goes on to reflect on the non-core advocacy missions of competition agencies (VI). To finish, the paper closes with words of warning (VII). A strict interpretation of the competitive neutrality principle in competition proceedings could limit agency discretion and divorce their work from the big economic picture.