T8 - COmp policy

Question 1

Parts of UK comp policy

Answer 1

Monopoly policy
Merger policy
Restrictive rtadign oractcises policy

Question 2

Comp policy aims

Answer 2

Reduce exploiatation of monopoly pwoer
Inc dynamic efficincy
Reduce costs of production
Imprve efficieny
price competition (safe)
protect consumers
Reduce excess profits
remove barriers to entry and exit

Question 3

What are the 4 pillars of UK and EU comp policy

Answer 3

Antitrust and cartels
Makret liberalisation
State aid control
Merger control

Question 4

What is monoploy policy (oligopoly policy)

Answer 4

Ensure mergers and shit dont cause to highly concerntrated amarket structures

Question 5

Approaches to the problem of monopoly

Answer 5

Compulsory break up
price controls
Taxing monopoly profts
Rate of return regulation
natioanlisation
Privatisaton
Dergeualtion
Removeal fo BTE

Question 6

Reasosn to prevent mergers

Answer 6

High prices
Lower qty supplied
Monopolies
Easier to collude
Less dynamic efficency
Less choice
Preadtory pricign Job loss
Dieseconomies of scales
Selfish motives

Question 7

Reasosn to prevent mergers

Answer 7

High prices
Lower qty supplied
Monopolies
Easier to collude
Less dynamic efficency
Less choice
Preadtory pricign Job loss
Dieseconomies of scales
Selfish motives

Question 8

Reasons to allwo mergers

Answer 8

EoS
Can keep unprofitabel service going
May nto affect market share too much
If verticla or conglomerate less likley to reduce comp
If firms dont have overlappign bbusiensses

Question 9

What is a vertical merger

Answer 9

Meegr of different supply chain fucntions

Question 10

What is aconglomerate merger

Answer 10

Firms have different bsusinesses

Question 11

What is hroixzontal merger

Answer 11

Two ismilar firms merging

Question 12

Benefits of horiontal merger

Answer 12

EoS
Enables new entity to provide wider rnage of rpodcyts
Icnreased efficency
Cut down common costs

Question 13

What are restrictiev trade practices

Answer 13

Charging discriminatory prices
Refusal to supply a particular outliet
Forcing distrubtor to seel mroe than of of its products

Question 14

what is meant by antitrust and cartels in pilalrs of comp polciy

Answer 14

elimination of agreeemtns that restrict comp and prices, such as cartel and collsuoon s

Question 15

what is meant by market liberailsation in pilalrs of comp polciy

Answer 15

introducing competition in previsouly monopoly like sectors

Question 16

what is meant by astate aid contorl in pilalrs of comp polciy

Answer 16

ensuring state aid emasures, eg subsidise does not distor comp

Question 17

what is meant by meger control in pilalrs of comp polciy

Answer 17

investigation of megers and take overs between firms

Question 18

when would the CMA investiagte into a megrer

Answer 18

if
turnover exceeds 70 million
new firm has over 25 % of market share

Question 19

when may teh secreatry fo state inetrvene in mergers

Answer 19

if shit can harm national itnerest

Question 20

cons of horziotnal megers

Answer 20

monopolu power
collusion
less comp
inc bte
job losses
diseconomies of scale