History Competition law

1 history

1.1 roman legislation
1.2 middle ages
1.3 competition law in europe

history

roman legislation

an example enacted during roman republic around 50 bc. protect grain trade, heavy fines imposed on directly, deliberately, , insidiously stopping supply ships. under diocletian in 301 a.d., edict imposed death penalty violating tariff system, example buying up, concealing, or contriving scarcity of everyday goods. more legislation came under constitution of zeno of 483 a.d., can traced florentine municipal laws of 1322 , 1325. provided confiscation of property , banishment trade combination or joint action of monopolies private or granted emperor. zeno rescinded granted exclusive rights. justinian subsequently introduced legislation pay officials manage state monopolies.

middle ages

legislation in england control monopolies , restrictive practices in force before norman conquest. domesday book recorded foresteel (i.e. forestalling, practice of buying goods before reach market , inflating prices) 1 of 3 forfeitures king edward confessor carry out through england. concern fair prices led attempts directly regulate market. under henry iii act passed in 1266 fix bread , ale prices in correspondence grain prices laid down assizes. penalties breach included amercements, pillory , tumbrel. 14th century statute labelled forestallers oppressors of poor , community @ large , enemies of whole country . under king edward iii statute of labourers of 1349 fixed wages of artificers , workmen , decreed foodstuffs should sold @ reasonable prices. on top of existing penalties, statute stated overcharging merchants must pay injured party double sum received, idea has been replicated in punitive treble damages under antitrust law. under edward iii, following statutory provision outlawed trade combination.

... we have ordained , established, no merchant or other shall make confederacy, conspiracy, coin, imagination, or murmur, or evil device in point may turn impeachment, disturbance, defeating or decay of said staples, or of them pertaineth, or may pertain.

in continental europe, competition principles developed in lex mercatoria. examples of legislation enshrining competition principles include constitutiones juris metallici wenceslaus ii of bohemia between 1283 , 1305, condemning combination of ore traders increasing prices; municipal statutes of florence in 1322 , 1325 followed zeno s legislation against state monopolies; , under emperor charles v in holy roman empire law passed prevent losses resulting monopolies , improper contracts many merchants , artisans made in netherlands . in 1553, henry viii of england reintroduced tariffs foodstuffs, designed stabilize prices, in face of fluctuations in supply overseas. legislation read here whereas,

it hard , difficult put prices such things ... [it necessary because] prices of such victuals many times enhanced , raised greedy covetousness , appetites of owners of such victuals, occasion of ingrossing , regrating same, more upon reasonable or ground or cause, great damage , impoverishing of king s subjects.

around time organizations representing various tradesmen , handicrafts people, known guilds had been developing, , enjoyed many concessions , exemptions laws against monopolies. privileges conferred not abolished until municipal corporations act 1835.

early competition law in europe

judge coke in 17th century thought general restraints on trade unreasonable.

the english common law of restraint of trade direct predecessor modern competition law later developed in us. based on prohibition of agreements ran counter public policy, unless reasonableness of agreement shown. prohibited agreements designed restrain s trade. 1414 dyer s first known restrictive trade agreement examined under english common law. dyer had given bond not exercise trade in same town plaintiff 6 months plaintiff had promised nothing in return. on hearing plaintiff s attempt enforce restraint, hull j exclaimed, per dieu, if plaintiff here, should go prison until had paid fine king . court denied collection of bond dyer s breach of agreement because agreement held restriction on trade. english courts subsequently decided range of cases gradually developed competition related case law, transformed statute law.

elizabeth assured monopolies not abused in era of globalization.

europe around 16th century changing quickly. new world had been opened up, overseas trade , plunder pouring wealth through international economy , attitudes among businessmen shifting. in 1561 system of industrial monopoly licenses, similar modern patents had been introduced england. reign of queen elizabeth i, system reputedly abused , used merely preserve privileges, encouraging nothing new in way of innovation or manufacture. in response english courts developed case law on restrictive business practices. statute followed unanimous decision in darcy v. allein 1602, known case of monopolies, of king s bench declare void sole right queen elizabeth had granted darcy import playing cards england. darcy, officer of queen s household, claimed damages defendant s infringement of right. court found grant void , 3 characteristics of monopoly (1) price increases, (2) quality decrease, (3) tendency reduce artificers idleness , beggary. put end granted monopolies until king james began grant them again. in 1623 parliament passed statute of monopolies, part excluded patent rights prohibitions, guilds. king charles i, through civil war , king charles ii, monopolies continued, useful raising revenue. in 1684, in east india company v. sandys decided exclusive rights trade outside realm legitimate, on grounds large , powerful concerns trade in conditions prevailing overseas.

the development of competition law in england , europe progressed diffusion of writings such wealth of nations adam smith, first established concept of market economy. @ same time industrialisation replaced individual artisan, or group of artisans, paid labourers , machine-based production. commercial success increasingly dependent on maximising production while minimising cost. therefore, size of company became increasingly important, , number of european countries responded enacting laws regulate large companies restricted trade. following french revolution in 1789 law of 14–17 june 1791 declared agreements members of same trade fixed price of industry or labour void, unconstitutional, , hostile liberty. austrian penal code of 1852 established agreements ... raise price of commodity ... disadvantage of public should punished misdemeanours . austria passed law in 1870 abolishing penalties, though such agreements remained void. however, in germany laws validated agreements between firms raise prices. throughout 18th , 19th century, ideas dominant private companies or legal monopolies excessively restrict trade further developed in europe. however, in late 19th century, depression spread through europe, known panic of 1873, ideas of competition lost favour, , felt companies had co-operate forming cartels withstand huge pressures on prices , profits.