Enforcing the Competition Law in Namibia A Toolkit - cuts ccier

Boeing convinced the EC to declare the merger compatible with thecommon market after making concessions that were not demanded by theFTC:• Boeing committed to keep the Douglas Aircraft Company, the civilaircraft division of McDonnell Douglas, a separate company for 10years, until 2007, and to supply the EC with reports on the company’sperformance.• Boeing committed not to link the sale of Boeing aircraft to its access tothe Douglas fleet in service.• Boeing canceled its exclusive supplier contracts with American, Delta,and Continental and promised to refrain from entering into such dealsuntil 2007.• Boeing offered its competitors nonexclusive licenses for patents arisingfrom publicly financed research and development.• Boeing gave assurances that it would not use its relationships withsuppliers to obtain preferential treatment.• Boeing agreed to provide the EC with annual reports for 10 years onits non-classified aeronautical projects that receive public funding. TheEC said the reports were needed to clarify the links between Boeing’scivil and military activities.CROSS-BORDER ISSUESWith this package of concessions, the EC signed off on the merger, sayingits competition concerns had been adequately addressed.Source: http://usinfo.state.gov/journals/ites/0299/ijee/boeing.htmbelow shows how the European Commission intervened in order to protectthe EU’s common market.Other than collusion or combinations, the size and scope of transnationalcompanies (TNCs) make it possible for them to engage in a variety of anticompetitivepractices. Take the example of Microsoft. The company has beenhauled up for indulging in anticompetitive practices time and again in the USand the EU. By and large, it has not faced such action in other jurisdictions,especially in the developing world, where the effects of Microsoft’s conducthave been increasing at the same pace as its business.Enforcing the Competition Law in Namibia: A Toolkit 79