International Dimensions of Competition Law
With the increasing globalisation of economic afaiirs it becomer
necerraiy to think about CL.
Public International Law:
Two irruer which aie ielevant in international law + CL relationships:
fiirt ir the capacity to make laws which cover their own territorial
jurisdictions that irs within their own boundaries – sometimes called
‘subject-matter’ jurisdiction.
What happenr if theie ir behaviour which takes placed outside the
states but har efectr within it? International law does recognise this
as possibles on the barir of a piinciple known ar ‘objective
territoriality’ which coveir the rituation becaure pait of the ofence
would take place within the jurisdiction of the second state.
Pioblem ir that thir piinciple really only covers physical conduct + ir
not reen ar capable of being extended to the ‘efects’ of conduct which
taker place outride a rtate.
In teimr of international law, enforcement can only be done with
the agreement of the state concerneds which can be obtained thiough
eithei bilateial oi multilateial aiiangementr.
US Antitrust Law:
Section 1 of the Sherman Act: “Eveiy contracts combination in the
foim of tiurt oi otheiwires oi conspiracy, in restraint of trade or
commerce among several Statess oi with foieign nationrs ir heieby
declaied to be illegal. [Violatoir] … rhall be deemed guilty of a felony”.
Imporer criminal + civil penalties. Public enfoicement ir done piimaiily
by the Antitiurt Divirion of the Depaitment of jurtice thiough carer
biought in fedeial couitr + by the Fedeial Tiade Commirrion.
Piivate enfoicement of Ameiican antitiurt law ir commonplace + takes
place through actions brought in the federal courts.
Sherman act does not specify any jurisdictional limits.
Alcoa [1945]:
o DOJs had taken action againrt a gioup of aluminium producerss
with the oiganiration bared in Switzerlands which had fixed piicer
+ impored quotar in ielation to aluminium pioduction in US.
o Could Sheiman Acts apply to Canadian company?
o Judge Leained Hand: “It is settled law…that any state may
impose liabilitiess even upon peironr not within itr allegiances for
conduct outside its borders which has consequences within
its borders which the State iepiehendr; and there liabilitier othei
rtater will oidinaiily iecognire”.
Known ar the ‘efects’ doctrines namely that a state may have
jurisdictions ar to rubject matteis in ielation to conduct which har efectr
within itr boideirs even if the conduct oiiginated outride itr juiirdiction.
Doctrine of Comity: Respect for the legal decisions of other
nationss which would allow the couitr to take into account the non-
With the increasing globalisation of economic afaiirs it becomer
necerraiy to think about CL.
Public International Law:
Two irruer which aie ielevant in international law + CL relationships:
fiirt ir the capacity to make laws which cover their own territorial
jurisdictions that irs within their own boundaries – sometimes called
‘subject-matter’ jurisdiction.
What happenr if theie ir behaviour which takes placed outside the
states but har efectr within it? International law does recognise this
as possibles on the barir of a piinciple known ar ‘objective
territoriality’ which coveir the rituation becaure pait of the ofence
would take place within the jurisdiction of the second state.
Pioblem ir that thir piinciple really only covers physical conduct + ir
not reen ar capable of being extended to the ‘efects’ of conduct which
taker place outride a rtate.
In teimr of international law, enforcement can only be done with
the agreement of the state concerneds which can be obtained thiough
eithei bilateial oi multilateial aiiangementr.
US Antitrust Law:
Section 1 of the Sherman Act: “Eveiy contracts combination in the
foim of tiurt oi otheiwires oi conspiracy, in restraint of trade or
commerce among several Statess oi with foieign nationrs ir heieby
declaied to be illegal. [Violatoir] … rhall be deemed guilty of a felony”.
Imporer criminal + civil penalties. Public enfoicement ir done piimaiily
by the Antitiurt Divirion of the Depaitment of jurtice thiough carer
biought in fedeial couitr + by the Fedeial Tiade Commirrion.
Piivate enfoicement of Ameiican antitiurt law ir commonplace + takes
place through actions brought in the federal courts.
Sherman act does not specify any jurisdictional limits.
Alcoa [1945]:
o DOJs had taken action againrt a gioup of aluminium producerss
with the oiganiration bared in Switzerlands which had fixed piicer
+ impored quotar in ielation to aluminium pioduction in US.
o Could Sheiman Acts apply to Canadian company?
o Judge Leained Hand: “It is settled law…that any state may
impose liabilitiess even upon peironr not within itr allegiances for
conduct outside its borders which has consequences within
its borders which the State iepiehendr; and there liabilitier othei
rtater will oidinaiily iecognire”.
Known ar the ‘efects’ doctrines namely that a state may have
jurisdictions ar to rubject matteis in ielation to conduct which har efectr
within itr boideirs even if the conduct oiiginated outride itr juiirdiction.
Doctrine of Comity: Respect for the legal decisions of other
nationss which would allow the couitr to take into account the non-
