Government Intervention

Question 1

What are the aims of competition policy

Answer 1

Promote competition, make markets work better and contribute towards improved economic efficiency

Question 2

What does competition policy aim to ensure

Answer 2

Technological innovation
Effective price competition between suppliers
Safeguard and promote the interests of consumers

Question 3

How does competition policy aim to safeguard and promote the interests of consumers

Answer 3

More house and lower prices

Question 4

What are the 4 main pillars of UK competition policy

Answer 4

• anti-trust & cartels
• market liberalisation
• state aid control
• merger control

Question 5

The 4 main pillars of U.K. competition policy: anti-trust & cartels

Answer 5

Elimination of agreements that restrict competition including price-fixing by firms who hold a dominant market competition

Question 6

The 4 main pillars of U.K. competition policy: market liberalisation

Answer 6

Introducing competition in previously monopolistic sectors such as energy supply, retail banking, postal serves etc.

Question 7

The 4 main pillars of U.K. competition policy: state aid control

Answer 7

Policy analyses state aid measures such as airline subsidies to ensure that such measures do not distort competition in the single market

Question 8

The 4 main pillars of U.K. competition policy: merger control

Answer 8

Investigation of mergers and take-overs between firms which could result in their dominating the market

Question 9

Examples of anti-competitive behaviour

Answer 9

Price fixing and market sharing
Predatory/limit pricing 
Patent misuse
Refuse to deal
Discrimination

Question 10

Power of the Competition And Markets Authority (CMA)

Answer 10

Can block acquisition

Power to giver a Mather the go-ahead