The revival of fairness discourse in competition policy

Abstract

The resurrection of the free trade–fair trade debate at the international level parallels a renewed pressure to incorporate fairness considerations within domestic competition policies, originating from a perceived reduction in the level of competition in various industries. Both supporters and critics of notions of fairness, however, have failed to advance a normatively persuasive case in their favor, neglecting the multifaceted nature of fairness in the competition policy domain. In this article, we disaggregate and evaluate four specific notions of fairness that are pertinent to domestic markets: Vertical fairness between producers and consumers, horizontal fairness on the demand side, horizontal fairness on the supply side, and procedural fairness. We defend a narrow dimension of horizontal fairness on the supply side consistent with efficiency goals and of procedural fairness in the enforcement of competition laws. We conclude by comparing the free trade–fair trade debate with the return of fairness in competition policy.