Regulation and competition policy Flashcards
1
Q
What is the CMA
A
the government agency responsible for overseeing competition policy
2
Q
The four key types of regulations used
A
- merger policy (might give firm too much market power)
- price regulation (capping prices firms can charge consumers)
- profit regulation (taxing firm profits if they make too much SPN profit)
- imposing targets and standards so firms don’t provide dodgy goods
3
Q
why would CMA investigate mergers
A
- combined market share of over 25%
- combined annual turnover over 70mil
4
Q
A
