Simon Deakin defined regulatory competition as a process, whereby legal rules are elected and de-selected through competition between decentralized, rulemaking entities, which could be nation states or other political units such as regions or localities. According to John Amour , regulatory competition implies that national legislatures compete to attract firms to operate subject to their laws. The question that one might ask is: is this already happening or will this happen?
First of all we will consider both factors that have influenced the development of the EC company law and opened a vivid discussion on the point of regulatory competition and later on factors that occur within the EU that support or impeach the chance of its existence.
One of the many factors that has prevented and still prevent a free choice of companies to move without any obstacles their administrative or real seat to another Member State is the impact of the dissonance of real seat theory and reincorporation theory, which will be further discussed bellow.