External Influences-regulations

Question 1

What practices can be investigated?

Answer 1

Dominance and anti-competitive

Question 2

What is the most common regulating body?

Answer 2

CMA-competition and markets authority

Question 3

What can the CMA stop?

Answer 3

Mergers

Acquisitions

Question 4

What can the European Regulatory Commission do?

Answer 4

Block UK mergers and acquisitions

Question 5

What is the CMA’s main aim?

Answer 5

To promote(actively encourage)competition between businesses for the benefit of consumers in and out of UK

Question 6

What is a cartel offence-give examples?

Answer 6

An agreement not to compete

Eg. Price fixing, bid rigging, market sharing…

Question 7

What are the 4 things the CMA does?

Answer 7

Investigates mergers+acquisitions that could restrict competition
Investigates possible abuses of dominant positions
Brings criminal proceedings against individuals who commit the cartel offence
Enforces legislation to tackle practices that make it difficult for consumers to exercise choice

Question 8

What sanctions can the CMA apply?

Answer 8

Fine up to 10% of the businesses global turnover
Those affected can sue for damages
Individuals can be disqualified from being a company director
Can fine individuals in the business

Question 9

What are the 7 impacts of regulations?

Answer 9

Encourages competition
More choices for customers
Better value for customers
More businesses operating within a given market
Better terms for suppliers
Less abuse of dominant positions
Leads to fines, prosecution, suspensions…