Competition law is also known as antitrust law in some jurisdictions and is designed to promote fair competition and prevent anti-competitive practices in the marketplace. The primary goal of competition law is to ensure that businesses compete fairly, consumers have choices, and economic markets function efficiently. Key aspects of competition law include:
1. Anti-Monopoly
Regulations: The competition laws are designed to prohibit
monopolies and mergers that substantially lessen competition and aim to prevent
one company or a group of companies from dominating a particular market, which
could therefore, lead to reduced competition, higher prices, and limited
consumer choice.
2. Cartels
and Collusion: These laws prohibits agreements that
restrict competition between the competitors and also restrict formation of Cartels
and collusion, where companies conspire to fix prices, allocate markets, or
manipulate the supply of goods or services.
3. Abuse
of Dominant Position: The Companies with significant market
power are restricted from abusing their power to eliminate or reduce
competition. These companies are restricted from carrying out practices such as
predatory pricing, tying arrangements, and discriminatory practices.
4. Merger
Control: These law also envisages Regulatory authorities
which reviews mergers and acquisitions to assess their potential impact on
competition. Mergers that may substantially lessen competition may be subject
to conditions or blocked.
5. Consumer
Protection: The Competition law often intersects
with consumer protection and aims to ensure that consumers have access to
accurate information, fair pricing, and choices in the marketplace.
6. State
Aid Control: In some countries, the competition laws
also regulates state aid to prevent governments from providing unfair advantages
to certain companies and distorting competition.
7. International
Coordination: Many countries have envisaged
competition authorities that cooperate internationally to address cross-border
anti-competitive practices and harmonize competition policies.
