The Annual Report on Competition Policy explains how the Commission implements competition policy and how it contributes to the European economy and to improving the welfare of EU citizens. The Report is a non-exhaustive overview of the most important policy and legislative initiatives, and of the decisions adopted by the Commission in application of EU competition law. It describes how the instruments of competition policy (antitrust, merger and State aid rules) were applied and developed further during the year, and how the Commission cooperated with EU national competition authorities and... third country competition authorities, as well as international organisations. A special section on interinstitutional relations reports on cooperation with other EU institutions in the field of competition. This volume contains the Report adopted by the Commission and also includes a more detailed Commission Staff Working Document.