MODULE CONTENTS
This module examines competition law, known as antitrust laws, and explores how these laws promote economic growth by stimulating innovation and protecting consumers. It covers anti-competitive practices, such as cartels and abuse of dominance, as well as European regulations, notably the Treaty on the Functioning of the European Union (TFEU). The module also covers US antitrust laws, such as the Sherman Act, and China's Antimonopoly Act.
LEARNING OBJECTIVES
Antitrust laws
Competition law is governed by European and international standards designed to ensure fair competition between companies, protect consumers and stimulate innovation. In Europe, the Treaty on the Functioning of the European Union (TFEU) and its regulations prohibit anti-competitive agreements and the abuse of dominant positions. Cartels distort competition by manipulating prices or dividing up the market between companies, to the detriment of consumers. Abuse of a dominant position, on the other hand, involves companies exploiting their position of strength to drive competitors out of business or impose unfair conditions.
The European Commission monitors and sanctions such practices to ensure free competition. It also regulates mergers and acquisitions to prevent the creation of monopolies, and monitors state aid to ensure it does not distort the market.
Outside Europe, the United States has its own antitrust legislation, with the Sherman Act of 1890, which helped dismantle monopolies such as Standard Oil. China also introduced its Antimonopoly Law in 2008 to regulate business practices.
These laws, applied on an international scale, are essential to maintaining an open, competitive and fair market, guaranteeing diversity of supply and affordable prices for consumers.
