competition policy

Also found in: Financial, Wikipedia.

competition policy

the competition policy of the European Union (EU) is designed to maintain an open market economy with free competition favouring an efficient allocation of resources. Articles 81-89 of the EC Treaty set out competition policy which is based on five main principles: the prohibition of concerted practices, agreements and associations between undertakings which may affect trade between Member States and prevent, restrict or distort competition within the internal market; the prohibition of abuse of a dominant position within the internal market, in so far as it may affect trade between Member States; supervision of aid granted by the Member States, or through State resources in whatever form whatsoever, which threatens to distort competition by favouring certain undertakings or the production of certain goods; preventive supervision of mergers with a European dimension, by approving or prohibiting the envisaged alliances; liberalization of certain sectors where public or private enterprises have hitherto evolved monopolistically, such as telecommunications, transport or energy.

The prohibition on concerted practices and the prohibition of abuse of dominant position maybe subject to derogation if an agreement between undertakings improves the production or distribution of products or promotes technical progress. State aid schemes may also involve less strict application of community rules. Of particular importance is Regulation (EC) No 1/2003 on the implementation of antitrust rules, and Regulation (EC) No 139/2004 on merger control. These Regulations ensure national authorities and courts are involved in the implementation of competition law.

By virtue of the Competition Act 1998, UK competition law now closely follows EU competition policy, striking at cartels and concerted practices and prohibiting the abuse of a dominant position. See also ANTIDUMPING, STATE AIDS.

References in periodicals archive ?
In the short span of time that the PCC was established, Jessen said the Philippine Competition Commission had made strides in educating its stakeholders of the importance of competition to the economy, has studied quite a number of cases and continues to learn from other economies including the EU on the proper way of implementing a sound and strong competition policy.
Dominguez III said an effective competition policy in a market economy would ensure that enterprises perform well and consumers get the best value for their money.
With experience in antitrust, unfair competition, trade regulation, competition policy and advocacy, and complex business litigation, their mid-sized competition law boutique will represent and advise clients who need solutions to curtail anticompetitive practices.
The presentations by CCP included an animation on Competition Law, a brief overview of the evolution of Competition Policy and Law worldwide by Ahmed Qadir, the Director General Competition Policy and Research and International Affairs CCP, an outline of the Pakistan's Competition Law by Syed Umair Javed, the Registrar and Director Legal CCP, and an interesting presentation on the role of the Office of Fair Trade (OFT) in curbing deceptive marketing practices by Dr.
Competition and Stability in Banking: The Role of Regulation and Competition Policy
Aquino earlier explained that this "lengthy and difficult bill" would create a new realm of competition policy for the Philippines as it would create new rules, parameters and the necessary guidelines to ensure fair competition in the country.
This article examines the role of antitrust and competition policy in regulation of large banks made fragile by the financial meltdowns of 2007-09.
China), examines the political economy environment of 11 countries of the Asia-Pacific region in terms of their suitability for current competition policy and law and expected future developments.
Gaomab said: "The Namibian Competition Com mission needs to give greater consideration to the voice of consumers as well in competition proceedings to educate consumers on the better understanding of the significance of competition policy and law in Namibia.
Competition policy helped strengthen the single market in 2012 through its enforcement action with companies that infringe EU competition rules and through its regulatory component with the implementation of state aid modernisation.
KOLKATA -- Describing the proposed national competition policy as the second financial revolution, that would also bring down foodgrain prices, Corporate Affairs Minister M.

Full browser ?