The Role of the Principle of Public Interest in the Decisions of the Iranian Competition Council and the European Union from the Perspective of Economic Public Law

Abstract

The primary objective of this study is to examine and comparatively analyze the competition law systems of the European Union and Iran and to assess the effectiveness of Iran’s legal framework in comparison with one of the world’s most advanced competition regimes. To this end, the study first examines the theoretical foundations and principal concepts of competition law, including anticompetitive agreements, abuse of a dominant position, and the control of economic concentrations. It then analyzes the institutional structure and enforcement mechanisms of competition law in the European Union, with particular emphasis on Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU), merger control regulations, and the roles of the European Commission and the Court of Justice of the European Union. Subsequently, Iran’s competition law framework is evaluated with particular reference to the Law on the Implementation of the General Policies of Article 44 of the Constitution and the role of the Competition Council. The findings indicate that the European Union’s competition law system benefits from a more precise legal framework, more independent enforcement institutions, a more extensive body of case law, and broader reliance on economic analysis in decision-making. Within this system, concepts such as the relevant market, dominant position, and the anticompetitive effects of business conduct have been defined and refined through decades of judicial jurisprudence and European Commission decisions. Decision-making is also predominantly based on an effects-based approach and assessments of market efficiency. By contrast, although the adoption of the Law on the Implementation of the General Policies of Article 44 and the establishment of the Competition Council constituted significant steps toward creating a legal framework for competition in Iran, the Iranian system continues to face challenges, including ambiguity in certain legal concepts, limitations on the institutional independence of the Competition Council, overlapping jurisdiction with certain sector-specific regulatory authorities, and limited use of economic analysis in the adjudication of competition cases. The results further demonstrate a significant difference between the two systems in the conceptual foundations of public interest. In Iran, competition policy is closely associated with considerations of economic justice, support for domestic production, and market regulation, whereas the European Union places greater emphasis on market efficiency, consumer welfare, and the preservation of competitive market structures. In addition, the structure of the Iranian economy and the extensive presence of state-owned and quasi-state-owned enterprises in numerous markets constitute important factors that complicate the comprehensive and effective enforcement of competition rules. Based on these findings, the study recommends that measures aimed at improving the effectiveness of Iran’s competition law system should include reforming and clarifying the relevant legal provisions, strengthening the institutional independence of the Competition Council, expanding the application of economic analysis in competition-law decision-making, improving coordination among regulatory authorities, and enhancing transparency through the systematic publication of competition decisions. Drawing on the experience of the European Union in these areas may contribute to the gradual development and greater effectiveness of Iran’s competition regime.