2 - The Role of Fines in the Toolkit of Competition Agencies

Summary

The chapter argues that the prevention of competition harms should be placed at the core of the functioning of competition authorities, including competition advocacy work. The legislative proposals of competition authorities can also be seen as a preventive tool. Fines are not a stand-alone tool in the toolbox of competition authorities when it comes to the prevention of harms. Rather, they are one of several tools that can be used by authorities to prevent harm and create public value. In order for competition authorities to carry out their protective role effectively and shield the public from harm, they must make full and consistent use of the preventive tools at their disposal. This necessarily requires the use of not only fines, but also regulatory initiatives and, where appropriate, the consistent application of divestitures.