Competition and industrial policy in the European Union

Abstract

Business concentration matters for European social democracy because it has been correlated with increased income inequality, a declining income share for labour and increased corporate lobbying. Drawing inspiration from the history of social-democratic competition policy and from renewed interest in antitrust in the USA, this contribution calls for a revival of social-democratic ideas of mobilising competition policy in service of environmental, regional and social goals. As industrial policy experiences a comeback in the EU and abroad, it will be essential to ensure greater conditionality and accountability for private businesses that receive exemptions from competition policy. What is at stake is not only the protection of workers, consumers, and small and medium enterprises from monopolies and oligopolies, but the protection of democracy itself from concentrated private economic power.