European Competition Policy And The European Union

1351 Words Nov 16th, 2014 6 Pages
In order to avoid such cases of economic loss and the businesses or consumers be protecting in their transactions, the European Commission has set certain rules and values that exist fluently functions in between European states and ensure unrestrained competition. The second part evaluates why we need a European competition policy and what European competition policy is about. European competition policy occupies a prominent in the work of the European Union since its inception of the Treaty of Rome in 1957. This Treaty established a system ensuring undistorted competition within the common market. The aim was to create a set of robust and efficient competition rules for the proper functioning of European market and benefit consumers of the advantages of a free market. Competition policy is a set of rules applied to ensure fair competition between companies. The application of encouraging entrepreneurship, increase efficiency, extends its consumer choice and contributes to reducing prices and improve quality. These are the reasons which the EU is fighting monopolistic practices, controlling mergers and state aid and encourage market liberalization.

The main reasons why the European Union is fighting for free markets is firstly the low prices for all. The easiest way to increase a company 's market share is to offer best prices. Therefore, the markets operated competition as prices fall. This favours the consumers, since they are more eligible buy, and, while encouraging…
Open Document