Competition policy examples

  • What is the competition policy in the UK?

    The general principles of UK competition policy include making sure that there is no collusion between firms and that no firms are abusing their market power.
    There are four main competition policy instruments that the EU uses: antitrust rules, merger rules, state aid rules, and cartel rules..

  • Farmers' markets: The average farmers' market is perhaps the closest real-life example to perfect competition.
    Small producers sell nearly identical products for very similar prices.
  • What Is an Example of Perfect Competition? Consider a farmers market where each vendor sells the same type of jam.
    There is little differentiation between each of their products, as they use the same recipe, and they each sell them at an equal price.
Examples of competition policy in action
  • De-regulation - laws to reduce monopoly power. Preventing mergers/acquisitions that create a monopoly.
  • Privatisation - transferring ownership. Stock market floatation of the Royal Mail.
  • Tough laws on anti-competitive behaviour.
  • Reductions in import controls.

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