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Executive Summary
Do different competition law systems treat marketing behaviors differently? This study addresses this question through an empirical examination of U.K. competition cases investigated between 1950 and 2005. The analysis of U.K. competition cases reflects how European Union competition law is applied within a member state. The authors find that more than half of all U.K. competition cases considered had an association with marketing actions and raise antitrust concerns.

Marketing actions are found to be associated with a wide range of anticompetitive behaviors, spanning from excessive prices to supply refusal. The most frequently observed uncompetitive behaviors linked to marketing in the United Kingdom are related to behaviors that are treated differently under U.S. laws. These behaviors include excessive pricing and vertical restraints (the set of business-to-business and business-to-customer relationships that impose certain restrictions on the sale and supply or goods and services).

It is proposed that any dominant U.S. firms conducting business in the European Union should develop an awareness of these differences. Indeed, there are many actions marketing managers may undertake. Initially, marketing managers need to be cognizant of competition law. If a marketer is uninformed, he or she may unwittingly and unknowingly fall foul of such law and guidelines. This position is compounded because marketing, by its nature, has developed a “boundary-spanning role” in many organizations because marketing managers have become increasingly involved in a diversity of company functions. Consequently, marketing objectives should be created that are cognizant of the rules for competitive behavior to reduce both risks for individuals and risks within the marketing planning process. Furthermore, if marketing managers are a significant cause of competition law violations, it is appropriate for these managers to have a greater role in demonstrating compliance with these laws. Similarly, competition and antitrust authorities might consider developing greater dialogue with marketing academics and managers with the aim of disseminating good practice.

Biography
John K. Ashton is Senior Lecturer in Regulation in the Norwich Business School at the University of East Anglia and is a member of the ESRC Centre for Competition Policy at the University of East Anglia. His key research interests include the competition policy and the pricing of financial services. John has published in a wide range of international journals, including Journal of Banking and Finance, Corporate Governance, Regional Studies, Small Business Economics, and the Service Industries Journal.

Andrew D. Pressey is Senior Lecturer in Marketing in the Lancaster University Management School and is member of the ESRC Centre for Competition Policy at the University of East Anglia. His principal research interests include buyer–supplier relationships and the regulation of marketing. His work has been published in the Journal of Marketing Management, Journal of Services Marketing, Journal of Business and Industrial Marketing, and Service Industries Journal, among others. Andrew has also acted as guest editor for Journal of Marketing Management.

Journal of Public Policy & Marketing, Volume 27, Number 2, Fall 2008
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