Untitled

From Colossal Marten, 7 Years ago, written in Plain Text.

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The purpose of competition laws is to make sure that healthy competition is maintained within a market. This is done by prohibiting agreements that restrict free trading and competition between firms (targeting cartels). Also banning abusive behavior of a dominant firm within a market, e.g. predatory pricing. Lastly these laws supervise merges or acquisitions of firms, as to make sure that it is not a direct infringement on competition.

Examples of these laws are: “Competition Act 1998” and “Enterprise Act 2002”. These laws are the most prominent competition laws in UK.

There is also the Competition Commission, whom police merges and acquisitions of businesses (amongst other things), to make sure that it would not produce a negative impact on the consumers.

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