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21. Improving the contestability of e-commerce in two jurisdictions: the Amazon case

Author:
Fiona Scott Morton
Publication Date:
12-2023
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Antitrust cases against Amazon in the United States reveal that the e-commerce giant has developed algorithms that mimic price protection contracts called MFNs (from most-favoured nations, a term borrowed from international trade), even though the company said publicly that it ended the contracts themselves some years ago. MFNs are well known in antitrust enforcement for their anticompetitive effects: higher prices and less entry. The complaints describe how Amazon demotes merchants from its coveted Buy Box if Amazon finds a lower price on a rival e-commerce site, creating an incentive for merchants to set higher prices on rival sites. The European Union, the Digital Markets Act bans such contracts. This would be a good remedy for the US as well as it would restore competition with minimal harmful side effects. The US complaints describe a different scheme that penalises brands if Amazon must reduce its retail prices to match a rival retailer. The EU may have to pursue this conduct under Article 102 of the Treaty on the Functioning of the European Union that prohibits abuse of dominance. Both the US Federal Trade Commission (FTC) and the European Commission have found that Amazon’s policy of tying its own logistics service to Amazon Prime status raises entry barriers to rivals. The European Union remedy redesigns the Buy Box and allows rival logistics services access to consumers. This remedy provides a useful benchmark to consider in designing remedies for the FTC and for California, which is also pursuing an antitrust case against Amazon. In general, both the US and the EU gain from the enforcement actions of the other.
Topic:
Contracts, Digital Markets Act (DMA), Competition, E-Commerce, and Amazon
Political Geography:
Europe, North America, and United States of America

22. Globalisation and automation as sources of labour-market competition, and support for European Union unemployment insurance

Author:
Brian Burgoon, Gregorio Buzzelli, Francesco Nicoli, and Stefano Sacchi
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Societies and economies are experiencing deep and intertwined structural changes that may unsettle the perceptions European citizens have of their economic and employment security. Such labour-market perceptions are likely in turn to alter people’s political positions. For instance, those worried by labour-market competition may prefer greater social protection to compensate for the accrued risk, or might prefer more closed economies where external borders provide protection (or the illusion of protection). We test these expectations with a conjoint experiment in 13 European countries on European-level social policy, studying how citizens’ demands align with parties’ political supply. Results broadly corroborate our expectations on the moderating effects of different types of concerns about perceived sources of labour-market competition on the features of preferred European-level social policy.
Topic:
Globalization, European Union, Unemployment, Automation, Labor Market, and Competition
Political Geography:
Europe

23. New technologies are challenging EU in outer space

Author:
Trine Rosengren Pejstrup
Publication Date:
08-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The increasing commercialisation and militarisation of outer space has intensified geopolitical competition and is re-shaping international relations. Public and private actors are increasingly looking to emerging technologies to gain a technological edge. This brief explores the topic of experimentation with emerging technologies in outer space and why EU decision-makers should address the main risks and implications of this development.
Topic:
Security, Science and Technology, European Union, Space, Emerging Technology, Militarization, and Competition
Political Geography:
Europe

24. US-China geoeconomic rivalry intensifies: A risk or an opportunity for European companies?

Author:
Jana Titievskaia
Publication Date:
11-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
As the US and China balance between the pursuit of strategic security interests and ambitions to attain economic growth, novel sources of risk are emerging for globally active businesses, ranging from sanctions to export controls. The Biden presidency will offer only moderate respite from the escalation of this geoeconomic rivalry, even as US-China trade recovers in the aftermath of the pandemic. In the face of US-China rivalry, the EU and its member states have opted for the third way of “open strategic autonomy”, including a range of trade instruments that will allow the EU to support the competitiveness of its companies more effectively. European companies need to closely monitor their risk exposure in various transmission channels and stay attuned to unexpected opportunities that can materialise in the form of market entry possibilities and the development of new niches.
Topic:
Hegemony, Rivalry, Strategic Interests, and Competition
Political Geography:
China, Europe, Asia, North America, and United States of America

25. France in the Eastern Mediterranean and the MENA region’s geopolitical competition: French grandeur or European sovereignty?

Author:
Toni Alaranta
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
The global rivalry between the US and China, as well as geopolitical competition and instability in the EU’s southern neighbourhood, are perceived by France as urgent matters requiring stronger EU foreign policy, conceptualized as European sovereignty. The French foreign policy elite are still largely committed to the idea of France’s exceptional role in the world, and to the extent that the EU as a whole fails to live up to the tasks presumed by France, continue their attempts at forging coalitions of the willing. France has in recent years built a web of strategic partnerships, for example with Greece, the Republic of Cyprus, the United Arab Emirates, and Egypt, through which it aims to govern the instability in the EU’s southern neighbourhood. The aim is also to deter regional adversaries such as Turkey, a strategy that needs to be re-evaluated due to the Russian invasion of Ukraine. France often equates its national interests with those of the EU. While this can be seen to enhance European sovereignty, it also risks increasing the perception that the EU would be a participant in various Middle Eastern conflicts. This undermines the EU’s ability to function as an objective broker and anchor of norms.
Topic:
Regional Cooperation, Hegemony, Foreign Interference, and Competition
Political Geography:
Africa, Europe, Middle East, France, North Africa, Mediterranean, and MENA

26. Turkey’s “anti-colonial” pivot to Mali: French-Turkish competition and the role of the European Union in the Sahel

Author:
Ioannis N. Grigoriadis and Dawid A. Fusiek
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Turkey’s rising foreign policy ambitions have been best reflected in its pivot to Africa. One of the tropes used by the Erdoğan administration to advance its cause are references to the colonial heritage of the European Union (EU) and its member states. The AKP and its officials have employed this discourse to challenge the French influence in Mali since the 2020 coup d’état. As this paper shows, Turkey uses anti-colonial discourse to exploit postcolonial sentiments with a view to challenging the political and economic power of Western actors, to portraying Turkey as a legitimate and “anti-colonial” ally and partner and, in the long run, to establishing a robust Turkish presence in Mali, the Sahel and beyond. In order to counter Turkish influence, the EU needs to promote fair cooperation with Mali and West Africa, to assist with political and economic development in the region, and to mobilise Member States which are unencumbered with a colonial past.
Topic:
Foreign Policy, European Union, Anti-Colonialism, and Competition
Political Geography:
Africa, Europe, Turkey, Middle East, France, Mali, and Sahel

27. África: Competencia y sustitución en un entorno estratégico de rivalidad. Introducción al número especial

Author:
María Ángeles Alaminos and Antonio Marquina
Publication Date:
10-2022
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
Este número especial de la Revista UNISCI se centra en la rivalidad creciente entre Estados existente en África y pretende ofrecer una visión comprehensiva del papel de distintos actores internacionales estatales en el continente africano, abarcando tanto el rol de las antiguas potencias coloniales, como la expansión creciente de China y el auge de la presencia e intervención de nuevos actores estatales con intereses políticos y económicos en el continente.
Topic:
European Union, State Actors, Rivalry, and Competition
Political Geography:
Africa, Russia, China, United Kingdom, Europe, Middle East, France, Latin America, and United States of America

28. A Compass to Guide EU Policy in Support of Business Competitiveness

Author:
Fredrik Erixon, Oscar Guinea, Philipp Lamprecht, Vanika Sharma, Elena Sisto, and Erik van der Marel
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The EU agenda for improving competitiveness is missing in action. Economic competitiveness has been a central plank in the development of the European Union – a relentless quest for policies that lead to more prosperity and that make European companies in world markets more successful. However, since the end of the Lisbon Agenda in 2010, economic competitiveness seems to have fallen off the EU map. This Agenda had its flaws, but it rightly sought to make Europe “the most competitive and dynamic knowledge-economy in the world”. The impression now is that Europe is on the retreat and the current European Commission is the first without a strategy to strengthen competitiveness at the EU level since the early 1990s. Hopefully, a course correction may now be on its way. Ursula von der Leyen has promised a “competitiveness check” on new EU policy. With the strong economic headwinds facing Europe and the world, the EU needs to pursue structural economic reforms that raise productivity and growth.
Topic:
European Union, Business, Regional Economy, and Competition
Political Geography:
Europe

29. Technology and Industrial Policy in an Age of Systemic Competition: Safeguarding Germany’s Technology Stack and Innovation Industrial Strength

Author:
David Hagebölling and Tyson Barker
Publication Date:
11-2022
Content Type:
Special Report
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
As one of the world’s most globalized economies, Germany is confronting a challenging international environment characterized by ag-gressive subsidies, a global race for control of key technologies such as advanced chips, and vulnerable supply chains for critical compo-nents. Increased energy costs – induced by Russia’s war on Ukraine – are also straining Germany’s industrial model. Germany’s industrial economy is simultaneously undergoing a fundamental transformation from precision-based engineering to sys-tems-based manufactured products. With this shift, a competitive digital technology stack is becoming a key repository for future industri-al competitiveness. Yet, the country struggles to capture value in fast-growing markets like that for cloud and edge infrastructure. It also faces risks from its exposure to untrustworthy technology vendors and potential geopolitical disruptions to fragile hardware supply chains. The German government is consequently drawing the contours of a new technology-industrial policy. This effort, however, suffers from uneven implementation and the complexities of eff ectively coordinating subnational (across the Länder) and supranational (across the EU) industrial policy. To effectively preserve its economic competitiveness, the German government should conduct a systematic assessment of the country’s strengths and vulnerabilities in critical technology, increase the cohesiveness between federal and state government initiatives, and work internationally – within the EU and with like-minded partners beyond – to leverage comparative advantages.
Topic:
Industrial Policy, Science and Technology, Innovation, and Competition
Political Geography:
Europe and Germany

30. Europe’s Global Gateway: A New Geostrategic Framework for Development Policy?

Author:
Mark Furness and Niels Keijzer
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The proposal by the European Union (EU) to build a “Global Gateway” to the world is potentially an important juncture in EU foreign relations. Since its official launch in December 2021, most attention has been put on the initiative’s geo­strategic implications and whether the EU can compete with China. Less attention has been paid to the Global Gateway’s implications for EU development policy in terms of strategic objectives, decision-making, thematic focus and financing. Two aspects are important in this regard. The first is whether the Global Gateway is a serious proposal that can deliver on its headline promises to massively increase European infrastructure financing in developing countries, provide partners with an alternative economic and political model to that being offered by China, and make a meaningful contribution to their efforts to realise the 2030 Agenda. The EU’s announcement that the Global Gateway will generate up to EUR 300 billion in investment by 2027 grabbed headlines, many of them sceptical. There is, however, no reason to doubt that the initiative will be adequately financed. Although the planning for the EU’s international aid budget for 2021-2027 has mostly been completed, a significant proportion remains flexible and could be spent on Global Gateway projects. As for the EU’s implementing capacity, the Gateway’s financial toolbox draws on the EU’s recent experiences with the Juncker Investment Plan and the External Investment Plan, which have both been utilised by development banks and private investors. The second aspect is whether the Global Gateway heralds a change in the EU’s motivations, objectives and modalities for cooperation with developing countries and regions. On the surface, the Global Gateway does not seem to change much. There are many thematic overlaps with existing strategic frameworks for engaging with Africa and the EU’s Neighbourhood. There is even a sense that the Global Gateway turns back the clock to the days when the EU focussed aid spending on infrastructure and emphasised its “political neutrality”. The geopolitical context in which the EU finds itself is, however, being transformed by pandemic, wars and multipolarity. The impacts of epochal events such as the Covid-19 pandemic and Russia’s invasion of Ukraine are still playing out. The Global Gateway signals a major adjustment in the EU’s response to these transformations, particularly regarding its engagement with the “Global South”. This will create a new paradigm for EU development policy, defined by strategic interests. It is likely that the new geostrategic framework will weaken the EU’s commitment to, and observance of, core develop­ment policy principles, especially the focus on poverty, partner country ownership, open governance and the “do no harm” principle. The Global Gateway’s use of aid to cata­lyse commercial investment risks further instrumentalising EU development policy. Specific measures are therefore needed to safeguard and promote the principles that the EU and its member states have committed themselves to.
Topic:
Foreign Policy, Development, European Union, Development Aid, and Competition
Political Geography:
Europe