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Economics A Level (DONEEEEEEE)

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Question:

What does the European Commission and UK Competition and Markets Authority care for?

Author: eric_galvao



Answer:

-Looking out for Unfair Monopolistic Competition such as: -Mergers: Monitoring them to Prevent an Unbeneficial effect on Efficiency and consumers, or giving them too much Market Share (25%) making it a Monopoly. This would be Harmful -Agreements: Involves Price Fixing, Splitting markets, or Limiting Production. This is Anti-Competitive and thus Unfair to Consumers -Opening Markets: When Government-controlled Markets are Opened to Competition. To ensure a Private Monopoly doesn't Dominate -Financial Support (EC) Governments from one EU Nation giving Support to Firms in a Market, may give them an Unfair Advantage in other EU Nations in that Market -Blocking: EC and CMA can Block Mergers + Impose Fines on Firms that have been Anti-Competitive


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