A word on Competition

In market economies, business activity is a competitive game. This should be played freely and fairly; it is essential if the market system is to contribute to consumer welfare and the overvall economic efficiency.

Free and fair competition helps to keep prices down and increases consumers' choice.

Nevertheless, it may come about that certain economic agents are tempted to avoid competition, for example, by setting prices. In some cases, companies may also abuse their position of market dominance to rid themselves of competitors or to hinder the entrance of other new ones. In such cases, this goes against consumer interests and economic efficiency.

The defence of competition

The conduct of companies violating free and fair competition should be eliminated, given its negative effects on consumer welfare and economic efficiency. To this end, the European authorities are committed to the defence of competition, and the establishment of organizations for the attainment of this objective.

The fundamental goal of those organizations that are responsible for the Defence of Competition is to protect and promote competition among companies within the geographical setting of their jurisdiction. In order to do so, they may demand information from businesses, and where applicable, proceed to inspect their installations and premises.

If those organizations entrusted with the Defence of Competition verify the existence of any illegal practices that may restrict competition, measures can be taken to stop any such conduct. Moreover, any business that is party to an illegal agreement or which abuses its dominant position in the market may be fined.