EU Competition Policy
European competition law and policy have changed significantly in recent years. With an enlarged EU of 27 member states, new rules, policies and administrative procedures have become increasingly important to ensure that this fundamental legal regime continues to promote competition and protect consumer welfare. In an attempt to define Competition policy, Massimo Motta described it as follows: “the set of policies and laws which ensure that competition in the market place is not restricted in such a way as to reduce economic welfare.”
European Competition policy is concerned with setting common standards of conduct among member states and its main goal is to ensure free and fair competition within the EU. It regulates the exercise of market power by large companies, governments and other economic entities. It has steadily increased its effectiveness in controlling restrictive practices, abuse of dominant positions, mergers, state aid and the liberalisation of utilities. In order to ensure that all economic entities understand, adhere and treat the competition policy with esteem, discipline is used not only with noncompliant companies but governments as well. Competition officials can invade factories, firms, and private residences to confiscate papers and computers on a suspicion of infringement of competition rules and regulations as set down by the EU.
EU competition policy is an important part of ensuring the completion of the internal market, meaning the free flow of working people, goods, services and capital in a borderless Europe. It is about protecting and expanding competition as a process of rivalry between firms in order to win customers. It also acts as a process of creating and protecting markets. Competitio ...