Why is it necessary to have Competition Legislation.
Discusses about Monopolies, Cartels, State-Aids and Invalid Mergers and how the legislation plays a critical role in makeing sure that market dynamics work for the common man and how it ensures the price is always competitive.
Introduction
The field of competition law has seen remarkable changes and developments over the past two decades, the extent of which can be rivalled by few other areas of law. At the end of 1980’s there were only about ten systems of competitive law. ”Now, Around 100 jurisdictions with a variety of economic systems and in different states are there in competition law” (Maher, 2008)
Competitive law has showed the signs that market systems deliver better outcome than that yielded by state control, planning and national monopoly management. This belief has resulted in shift towards liberalisation and privatisation of domestic economies and showed the world that competition acts as a force which can bring in innovation and economic growth and supports the social development of countries and its citizens.
This report discusses roles of Competition Commission (CC), Office of Fair Trading (OFT), and European Commission and why it is becoming increasingly important for every country to adopt competition legislation and fight against distortions in competition.
Competition Commission and Office of Fair Trading
The Competition Commission (CC) is an independent public body in the UK which conducts in-depth inquiries into mergers, markets and the regulation of the major regulated industries. “Competition Commission helps to ensure that healthy competition exists between companies in the UK for the benefit of companies, customers and the economy” (Competiti ...