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
