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Needle Case Study

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Study of the needle case with economics principles

Maastricht University
School of Business and Economics
Maastricht, 6 December, 2012
Student: Yuliang Hong  
Student number: 6035437
Crouse: Economics and Business Economics
Crouse code: EBC1010
Group: 16
Tutor:   JA.Schumacher
Academic year: 2011-2012
Writing Assignment: Main Paper

Table of contents

1 Introduction
2 Background: Establishment of European Competition Policy and its main purpose.
3.1 Description of Needle case
3.2 Relevance market
3.2 Relative Economics principle: Perfect competition and Monopoly
3.4 Relative Economics principle: Forming of cartels
3.5 The action of the commission and results  
4 Conclusions
5 Reference list

The present of European competition policy is the significant step of regulating market by law in the economic history. There are more and more problems of the European market were solved under the Commission’s regulation under the competition policy, like forming of cartels and creating the monopolistic market illegally. How do they manage the market by competition policy? What economics principles do them following? This paper will discuss about function of the European Union (EU) Competition Policy and one special case about the needle market of Europe in the 1990’s, which is based on the resource from 40th anniversary of the report on competition policy (European Commission, 2010) and the information about the needle case is based on the report of the European Commission. It would include some example either from Europe or foreign countries, as well as examples of different economics theories, from the relevant Internet and economics book.    

Background: Establishment of European Competition Policy and its main purpose.
Many European states had their own competition law before they joined European Union, like “Nederlandse Mededingingsautoriteit” in Holland and “Bundeskartellamt” (BKartA) in...

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