Competition policy exists to protect consumers (and the wider economy) by ensuring there is effective competition between firms. In the UK, competition policy is enforced primarily by two bodies: the Office of Fair Trading (OFT) and the Competition Commission (CC). Other countries have similar national bodies. In the EU, the European Commission (EC) also enforces European competition law.
A significant proportion of competition authorities’ work relates to mergers of existing firms. In Europe, relatively small mergers are considered by the relevant national competition authorities, whereas larger mergers are considered by the EC. If a merger is thought to pose a potential threat to consumers — in terms of leading to higher prices or lower quality — authorities will investigate in more detail, and may prohibit the merger, or require the firms to make some concessions, such as selling off parts of the joint business to a third party.
Your organisation does not have access to this article.
Sign up today to give your students the edge they need to achieve their best grades with subject expertise
Subscribe
