Competition Policies - Aims, Interventions, Bodies

• Competition policy


  Policy enacted to ensure the public interest is protected
• Who enacts competition policy

  • In the UK, the main regulator is the Competition and Markets Authority (CMA)
  • Beneath the CMA, there are specialized regulatory bodies that oversee specific industries and companies (e.g. Ofcom for telecommunications, Ofgem for gas and electricity)
  • In the EU, the European Competition Commission oversees competition within the single market
• Aims of competition policy

  • Ensure the public interest is protected (e.g. preventing excessive prices, ensuring quality, choice, and standards)
  • Promote competition in highly concentrated markets through liberalization, privatization, or regulation of natural monopolies
  • Ensure monopoly profits are reinvested for public benefit rather than just going to shareholders
• When is competition policy enacted

  • To investigate and prevent anti-trust behaviour like collusive agreements and cartels
  • To investigate mergers that could create market dominance above 25% market share
  • To liberalize highly concentrated markets
  • To monitor and control state aid that could distort competition