European Commissioner for Competition Margrethe Vestager does not expect the UK to change its support for ‘competition based on merits’ and fair chances, after Brexit.
A hard Brexit, in which the UK would also leave the EU Single Market, would mean European rules for competition would not apply any more to the UK.
In theory that would make it much easier for the British government to try and keep international companies from leaving the UK by granting them special tax benefits.
Vestager’s case against Apple in 2016 was based on the claim that Ireland provided illegal state aid to the American techgiant in the form op special tax benefits. After a hard Brexit, Brussels would not have the authority anymore to make a similar case against the UK.
Vestager, however, tells Business Insider that she doesn’t think it’s very likely that the UK policy will be radically different after Brexit:
“[O]ne of the things with the Brits over the decades is that they have always had a very strong voice in support of competition based on merits, open markets, and the principle that everyone should have a fair chance. So in terms of values with regard to competition, I don’t see why they would change their mind.”
The European Commissioner commented during a visit to the Netherlands on Wednesday, where she gave a speech at Leiden University. Vestager acknowledges that it’s “just very difficult to know” how things will evolve, since the negotiations haven’t even started yet. “But if you would make a prognosis based on their past, I don’t see why this shouldn’t continue.”
According to some opponents of Brexit, the decision to leave the European Union is part of a wave of economic nationalism, which also includes Donald Trumps ‘America first’-campaign.
Former British Chancellor George Osborne last year said “the forces of protectionism are rising” and called for politicians to do more to “fight” to defend the value of free trade and open societies.