The US and EU’s Approach to Extraterritorial Jurisdiction in Competition Law: How Can We Balance protection of Domestic Markets and International comity?

Isabel Rontomé Fernández

E-mail: irontome.ieu2023@student.ie.edu

Abstract

This paper will compare the methods which the United States (US) and the European Union (EU) utilise to apply their competition law extraterritorially. Through examination, we can observe that the EU applies its domestic law to foreign companies more aggressively. Although both the EU and the US utilise the effects doctrine, the EU additionally utilises the implementation doctrine to further expand its jurisdiction. The US’ Foreign Trade Antitrust Improvements Act (FTAIA) further places restrictions on the effects doctrine, and cases such as In re Vitamin C demonstrate the US’ relative reluctance to apply its domestic law extraterritorially. The paper further explores the criticisms of extraterritorial jurisdiction in competition law, such as legal uncertainty for multinational corporations (MNCs) and infringements of state sovereignty. It ultimately evaluates solutions for growing concerns over jurisdictional conflicts, such as increasing legal intelligence amongst companies, enhancing international cooperation mechanisms and independent international courts.

READ THE FULL ARTICLE HERE (Page 83-91)

Keywords: extraterritorial jurisdiction, multinational corporations (MNCs), effects doctrine, implementation doctrine

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