What Is anti Competition Law

What Is anti Competition Law

Anti-competitive practices are generally considered illegal only if they lead to a significant lessening of competition, which is why, in order to be penalised for any form of anti-competitive behaviour, an undertaking must generally be a monopoly or dominant undertaking in a duopoly or oligopoly that has significant influence on the market. Antitrust laws exist to promote competition among sellers, limit monopolies and give consumers more opportunities. Trust in antitrust law refers to a group of companies that merge or form a monopoly to dictate prices in a given market. At its core, antitrust rules are designed to maximize consumer welfare. Proponents of the Sherman Act, the Federal Trade Commission Act and the Clayton Antitrust Act argue that since their inception, these antitrust laws have protected consumers and competitors from market manipulation due to corporate greed. Through civil and criminal enforcement, antitrust laws aim to end price and bid-setting, monopolization, and anti-competitive mergers and acquisitions. As part of the establishment of the ASEAN Economic Community, member states of the Association of Southeast Asian Nations (ASEAN) committed to adopting competition laws and policies by the end of 2015. [44] Today, all ten Member States have general competition law. Although there are still differences between the regulations (e.B. as regards the rules on the notification of merger controls or the leniency reporting system)[45] and it is unlikely that there will be a supranational competition authority for ASEAN (similar to the European Union)[46], there is, however, a clear trend towards an increase in infringement procedures or cartel enforcement decisions. [47] Agreements between competitors are the most serious form of anti-competitive conduct within the meaning of Chapter I or Section 101 and are subject to the highest penalty. A “hard-core” cartel is a cartel that involves setting prices, sharing the market, fixing offers, or restricting the supply or production of goods or services. Persons prosecuted for a cartel offence in the United Kingdom may be punished by up to five years` imprisonment and/or unlimited fines.

From the point of view of competition law, a merger or acquisition implies the concentration of economic power in the hands of less than before. [90] This generally means that one company buys the shares of another. The reasons for State control of economic concentrations are the same as the reasons for restricting undertakings abusing a dominant position, except that the regulation of mergers and acquisitions aims to solve the problem before it arises, by preventing ex ante the dominant position. [91] In the United States, the Merger Regulation began with the Clayton Act and, in the European Union, with The Merger Regulation No. 139/2004 (known as the “ECMR”). [92] Competition law requires companies that intend to merge to obtain approval from the relevant government authority. The theory behind mergers is that transaction costs can be reduced through bilateral agreements compared to operating in an open market. [93] Mergers can result in economies of scale and scope.

However, companies often take advantage of their growing market power, increased market share and reduced number of competitors, which can have a detrimental effect on consumer activities. Merger control is about predicting what the market might look like, not knowing and making a judgment. Consequently, the central provision of EU law asks whether a concentration, if concluded, `would significantly impede effective competition`. in particular following the establishment or strengthening of a dominant position…”[94] and the corresponding provision between the US cartel states, Google proposed a cartel settlement with the European Commission in early 2014. Google suggested displaying results from at least three competitors whenever results were displayed for specialized searches related to products, restaurants, and travel. Competitors would pay Google every time someone clicked on certain types of results that appear next to Google results. The search engine would pay for an independent monitor to monitor the process. The history of competition law dates back to the Roman Empire. .

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