Competition law is an extremely complex area of law that is in constant evolution,
and whose underpinning principles cross paths with economic and market theories.
Its pervasive effects embrace every aspect of the market economy including the financial
services sector (banking and insurance industries).
The financial services sector with its sophisticated structures and interconnections
with other areas of the market is, in its own right, a very difficult sector to decode.
One reason for this is that, nowadays, banking and insurance undertakings perform
almost identical economic functions; both can be defined as financial intermediaries
that receive money from private individuals or companies in the form of deposits or
premiums, and lend money to customers wishing to borrow.
The importance of the role played by the financial services sector in the economy
cannot be overestimated: past and recent financial crises are a testament to the pivotal
role played by banks and insurers in society. Thus, especially in this sector of the
economy, competition should be carefully scrutinized with a view to create a level
playing field and limiting possible detrimental consequences for consumers.
Since the dawn of the European Union, insurance and banking undertakings claimed
to be subject to a special status vis-à-vis the application of EU competition law, as a
result of the quasi social nature of the services they provide. Nevertheless, contrary to
such claims, both the Commission and the European Courts from the outset fervidly
affirmed the complete exposition of the financial services sector to the European antitrust
regulatory framework, with some exceptions in the insurance sector.