Business Ethics and Corporate Governance, Second Edition

COMPETITION AGENCIES AND COMPETITION POLICIES

Ultimately, the key role of competition is to enhance economic freedom. It provides opportunities for new entrepreneurs and firms to compete on economic merits, and not on the ability to garner political favours. More business ideas get to face the market test. Over time, firms with good governance are more likely to succeed, while those without it will be shunned and weeded out.

Competition policy seeks to prevent anti-competitive practices and business developments or policy reforms which may facilitate these practices. It aims to stop unfair business tactics and abuse of market power or political office to gain excess profits. With a clear set of competition rules, the government is in a better ...