Competition Policy Flashcards
What is the purpose of Competition Policy?
To promote and protect competition
What do Anti-trust laws do?
Make anti-competitive behaviour illegal
What is anti-competitive behaviour?
Behaviour that creates, increases and maintains market power
List some potential punishments
fines, imprisonment, cease-and-desist orders, divestiture of assets, dissolution of organisation
List the three theories of competition policy:
Monopoly pricing, merger policy, restrictive trade practices policy
What is the economic rationale of Competition Policy?
To enhance efficiency (total surplus) therefore weighing anti-competitive behaviour effect against efficiency gain
List the US Legal framework statutes
Sherman Act, Clayton Act, Fed Trade Commission Act
List the EU Legal framework statutes
EC Treaty (articles 81,82), Regulation of implementation rules on competition (EC Treaty), EC merger regulation
List the UK Legal framework statutes
Competition Act, Enterprise Act, EC Treaty, Enterprise and Regulatory Reform Act