Competition Law

• What is competition law?

  These laws prohibit anti competitive agreements between businesses and the abuse of a dominant position in a market.
• What are the two pieces of legisaltion related with competition law?

  • Competition Act 1998
  • Enterprise Act 2002
• What does the Competition Act 1998 and Enterprise Act 2002 do?

  • Repression of Cartels to avoid collusion
  • Ban abusive behaviour by market leaders such as predatory pricing or price gauging
  • Supervise mergers, takeovers and joint ventures to ensure not anti-competitive
• What is anti-competitive behaviour?

  Actions taken by a business to limit, restrict or eliminate competition in a market, usually to gain an unfair advantage or dominate the market
• What are two examples of abusive behaviour by businesses?

  • Predatory pricing
  • Price gauging
• What are two examples of illegal pricing strategies?

  • Predatory pricing
  • Price gauging
• What are the impacts of competition law on businesses?

  • It is more fair for small businesses
  • Reputation issues if business fails to comply which could lead to lower sales and fines
  • Changing pricing strategies