Competition Law As It Relates To A-level Economics

Summary of key points from UK competition law as it relates to A level economics

Key laws:

The Competition Act 1998

The Enterprise Act 2002

The Enterprise and Regulatory Reform Act 2013

In general terms the law covers aspects of cartel behaviour possible abuse of a dominant market position and effects that might result from any merger or takeover. The focus is invariably based upon price, choice, quality, innovation (allocative efficiency aspects)

The Fair Trading Act 1973

S6 Monopoly as 25% of a relevant market (still relevant)

The Competition Act 1998

S18(2) Covers the abuse of a dominant (market) position: arrangement that abuse that (price / restrictions) is judged through conduct

S43 Destroying or falsifying or providing misleading documents

The Enterprise Act 2002

In connection with MA:

S22(1) Refers to a significant lessening of competition (SLC) as a reason to judge MA

S23(1) MA: £70 million merger / takeover means automatic consideration by competition authority

S23(3) 25% market share created by MA will be referred to competition authority

S30(1a) means to judge any MA in terms of SLC allocative efficiency aspects

S188 Covers cartel behaviour and offences

The Enterprise and Regulatory Reform Act 2013

Created the Competition and Markets Authority (CMA) to replace the Competition Commission and the Office of Fair Trading