European Competition Law And Policy

1335 WordsNov 21, 20166 Pages
This essay will analyse European competition law and policy to ascertain the values and characteristics that serve as its foundation. First, this essay will give a brief outline of competition and the significance of competition law and policy. Subsequently, this essay will give an explanation of the values behind European competition law and policy, which are consumer welfare, economic efficiency and economic freedom. The values will incorporate Articles 101 and 102 TFEU along with reference to the Chicago school of competition analysis and ordoliberalism. Competition occurs in a free market economy where firms will endeavour to achieve business objectives which adapt according to interactions with consumers. These objectives are profits, sales or market share. Competition is essential for a properly functioning market as firms will be placed under competitive pressure to provide consumers with a comprehensive choice of goods and services at the most favourable prices. In a free market economy, government regulations or restrictions are not applied in this economic system. Instead, it is determined by supply and demand which directs the production of goods and services. The premise of a free market is competition between firms to enable increased consumer welfare while promoting innovation and efficiency as there will be lower prices and products of better quality. For competition to be effective in a free market economy, it must be protected by competition law and
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