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Competition Law
Most jurisdictions have adopted some form of a competition law. These laws vary from jurisdiction to jurisdiction but commonly have similar goals. Many acts aim to protect the interests of consumers while also attempting to ensure that entrepreneurs have a chance to compete in the market economy.
The laws that compose the area of competition law are closely connected with laws that relate to the deregulation of access to markets, state aids and subsidies, the privatization of state-owned assets, and the establishment of independent sector regulators. In recent years, competition law has been viewed as a way to provide better public services.
Competition law can trace its history all the way back to the Roman Empire. The business practices of various market traders, guilds, and governments have always been subject to scrutiny. In some cases, they are subject to severe sanctions for breaking any rules. By the start of the twentieth century, competition laws started to exist on a more global scope.
The two largest and influential systems of competition regulation are United States antitrust laws and the European Community’s competition laws. Various national and regional competition authorities have formed and created international support and enforcement networks.
In the United States, competition, or antitrust, laws have three main components:
- They prohibit agreements or practices that restrict free trading and competition between business entities. This includes the repression of cartels
- They ban abusive behavior by a firm that dominates a market or anti-competitive practices that lead to a dominant position. This includes predatory pricing, tying, price gouging, or refusing to deal.
- They supervise the mergers and acquisitions of large corporations, including some joint ventures.
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