LAW AND ECONOMY : ANTI-COMPETITIVE PRACTICES - SPECIFIC ISSUES - FISCAL TRANSFER PRICES – ARM’S LENGTH PRINCIPLE

The use of fiscal transfer prices for a better articulation between competition law and international tax law

The assessment of the anti-competitive nature of certain practices can raise specific issues when multinational firms are involved. To work around those issues, Competition Authorities can be tempted to use fiscal transfer prices in their calculations. The article underlines the risks of such an approach but also describes how an understanding of the "arm’s length principle" can allow for an efficient use of the transfer prices in an antitrust context.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. I. Economic globalization imposes new constraints on competition law 1. After 40 years of almost uninterrupted growth in international flows of goods and capital, the weight of multinational enterprises (hereinafter "multinationals") in the world economy is now very significant. There are now about 80,000 MNEs with a combined worldwide turnover of more than $25,000 billion [1]. In France, 36% of industrial production activity was carried out, as of 2001, by subsidiaries of multinational [2]firms. 2. The emergence of a multinational company is most often the result of a process of geographical fragmentation of the value chain. The various links in this

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Laurent Benzoni, Julien Pellefigue, The use of fiscal transfer prices for a better articulation between competition law and international tax law, May 2013, Concurrences N° 2-2013, Art. N° 51490, pp. 32-39

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