Competition Policy

Competitive markets tend to deliver lower prices, better quality and more innovation for consumers. Competition policy protects these benefits by stopping businesses from restricting competition.

Its main areas include banning cartels, in which competitors agree to fix prices, share markets or rig bids; preventing dominant companies from abusing their position, for example by excluding rivals unfairly; reviewing mergers and acquisitions, and blocking or imposing conditions on those that would harm competition; and, in some regions, controlling government subsidies to businesses.

For example, a competition authority might block a merger between the two largest suppliers in a market, or fine companies that secretly agreed to keep prices high.

In the United States, competition law is called antitrust law, based on laws such as the Sherman Act of 1890. In the European Union, it is enforced by the European Commission, and most countries have their own competition authorities. Applying competition rules to large digital platforms has become a major focus.

Note: Antitrust is the term used in the United States for competition policy and law.