Competition law

Competition law, known in the United States as antitrust law, has three main functions. First it prohibits agreements aimed to restrict free trading between business entities and their customers. For example, a cartel of sports shops who together fix football jersey prices higher than normal is illegal.[12] Second competition law can ban the existence or abusive behaviour of a firm dominating the market. One case in point could be a software company who through its monopoly on computer platforms makes consumers use its media player.[13] Third to preserve competitive markets, the law supervises the mergers and acquisitions of very large corporations. Competition authorities could for instance require that a large packaging company give plastic bottle licenses to competitors before taking over a major PET producer.[14] In this case (as in all three), competition law aims to protect the welfare of consumers by ensuring business must compete for its share of the market economy. In recent decades, competition law has also been sold as good medicine to provide better public services, traditionally funded by tax payers and administered by democratically accountable governments. Hence competition law is closely connected with the law on deregulation of access to markets, providing state aids and subsidies, the privatisation of state-owned assets and the use of independent sector regulators, such as the United Kingdom telecommunications watchdog Ofcom. Behind the practice lies the theory, which over the last fifty years has been dominated by neo-classical economics. Markets are seen as the most efficient method of allocating resources, although sometimes they fail, and regulation becomes necessary to protect the ideal market model. Behind the theory lies the history, reaching back further than the Roman Empire. The business practices of market traders, guilds and governments have always been subject to scrutiny and sometimes severe sanctions. Since the twentieth century, competitio

law has become global. The two largest, most organised and influential systems of competition regulation are United States antitrust law and European Community competition law. The respective national authorities, the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) in the United States and the European Commission's Competition Directorate General (DGCOMP) have formed international support and enforcement networks. Competition law is growing in importance every day, which warrants for its careful study. The Directorate-General for Competition (COMP) is a Directorate-General of the European Commission, located in Brussels, Belgium. The DG Competition is responsible for establishing and implementing a coherent competition policy for the European Union. The DG Competition has a dual role in antitrust enforcement: an investigative role and a decision-making role. This duality of roles has been criticized in the past. In response to such criticism, DG Competition has implemented a number of internal reforms in order to guarantee parties' due process rights. DG Competition is also considered to be one of the most sophisticated antitrust enforcers in the world, alongside the US agencies (the Federal Trade Commission and the Antitrust Division of the Department of Justice). The DG Competition policy areas include the following: antitrust (agreements prohibited under the Articles 101 and 102 of the EC Treaty) mergers (Commission Regulation (EC) No 802/2004 implementing Council Regulation (EC) No 139/2004 (The "Implementing Regulation") and its annexes (Form CO, Short Form CO and Form RS)) liberalisation (Articles 3 and 86 of the EC treaty) state aid - ensuring that government interventions do not distort competition and intra-community trade (Article 107 - 109 of the Treaty of the Functioning of the European Union). international cooperation The current Commissioner responsible for Competition Policy within the European Commission is Joaquin Almunia.