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 ?
The statute does not provide that the Antitrust Division or other competition policy experts be included on the Council.
The EU's competition policy in the banking, transport and energy sectors should be more hard-hitting, says a report by Ramon Tremosa i Balcells (ALDE, Spain) adopted by the European Parliament's plenary session in Strasbourg, on 11 December, with 604 votes in favour, 48 against and 41 abstentions.
Basing the discussion on the premise that the introduction of pro-competition policy and law is unlikely to be effective without such prerequisites as representative and accountable government, the rule of law, efficient and effective public services, and low levels of corruption in governmental and business affairs, this collection of national case studies, edited by Williams (Hong Kong Polytechnic U., 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.
A competition policy is the way the state can regulate the markets functioning in order to protect the consumers from the economic agents' restrictive practices in their natural tendency of cornering a market.
KOLKATA -- Describing the proposed national competition policy as the second financial revolution, that would also bring down foodgrain prices, Corporate Affairs Minister M.
Stressing that Turkey fulfilled its responsibilities in competition policy chapter, Bagis said that Turkey would avoid negative steps that would affect successful economic performance.
Addressing a conference on Building "Friends of Competition" in India, organised by CUTS Institute for Regulation and Competition (CIRC) and Indian Institute of Corporate Affairs (IICA), Ministry of Corporate Affairs here, Moily said "the stage is set for competition policy reforms."
In this paper I integrate the literature on the evolution of the role of competition policy, the adoption and effective implementation of competition law-policy, the effective application of competition law-policy, and the economic advantages of competition, with the issues of competition in European markets, the benefits of promoting competition in domestic markets in Latin American economies, the merits and benefits of fostering competitive markets, and the actual consequences of a conduct on the competitive process.
A US Senate subcommittee on Antitrust, Competition Policy and Consumer Rights is to examine the proposed merger between United Airlines and Continental Airlines on 27 May 2010.
The point is also to establish, at ICO level, a platform of cooperation on the law and the competition policy which would be used as a forum to debate and popularize successful experiences.
(21) Part III.B.3 explains that, because of the focus on international convergence of competition policy, the United States domestic response to Leegin will likely play a role in determining the actions of Canada and the EU.

Full browser ?