An Economic Analysis of Extraterritoriality.

Extraterritorial application of national laws are regarded as an infringement of national sovereignty and against the interests of the nations affected by these actions, who frequently oppose their enforcement as a consequence. This paper examines extraterritorial application of national competition laws, and identifies an additional issue. Extraterritorial action by national competition authorities acting alone and in pursuit of their national interests may not eliminate distortions in global markets.