The Competition Commission
The Competition Commission is an independent public body established
by the Competition Act 1998. It replaced the Monopolies and Mergers
Commission on 1 April 1999.
The Commission conducts in-depth inquiries into mergers, markets and
the regulation of the major regulated industries. Every inquiry is
undertaken in response to a reference made to it by another authority:
usually by the Office of Fair Trading (OFT) but in certain
circumstances the Secretary of State, or by the regulators under
sector-specific legislative provisions relating to regulated
industries. The Commission has no power to conduct inquiries on its
own initiative.
The Enterprise Act 2002 introduces a new regime for the assessment of
mergers and markets in the UK. In most merger and market references
the Commission is responsible for making decisions on the competition
questions and for making and implementing decisions on appropriate
remedies. Under the legislation which the Act replaces, the Commission
had to determine whether matters were against the public interest. The
public interest test is replaced by tests focused specifically on
competition issues. The new regime also differs from the previous
regime where the Commission’s power in relation to remedies was only
to make recommendations to the Secretary of State.
What the commission investigates?
SOURCES OF INVESTIGATIONS
TYPE OF INQUIRY
GOVERNING LEGISLATION
REFERRAL MADE BY:
Market
Enterprise Act 2002
Office of Fair Trading, Secretary of State or certain Utility
Regulators
Merger
Enterprise Act 2002
EC Merger Regulation...
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... by [the Commission]... for the purpose
of remedying, mitigating or preventing the substantial lessening of
competition concerned or any adverse effect which has resulted from,
or may be expected to result from, the substantial lessening of
competition;
whether [the Commission] should recommend the taking of action by
others for the purpose of remedying, mitigating or preventing the
substantial lessening of competition concerned or any adverse effect
which has resulted from, or may be expected to result from, the
substantial lessening of competition; and
in either case, if action should be taken, what action should be taken
and what is to be remedied, mitigated or prevented.
If the Commission finds that there is no anti-competitive outcome
resulting from the merger, no question of considering remedies arises.
I have never had a strong opinion on monopolies in Canada. However, I believe that monopolies can stifle innovation, competition, and affect the prices that the consumer has to pay for a product or service. Since we live in a mixed market economy, Canada has very few monopolies such as the health, airspace, and telecommunications industries. Companies within theses industries are notorious for price fixing, lack of innovation, and competition. These problems are prevalent because of the barriers to entry the new players face such government regulation, the cost of doing business, and infrastructure.
This essay will examine key aspects of the recent implementation of the Australian Consumer Law (ACL) 2011, which is the largest overhaul in Consumer Law in Australia in the past twenty five years. The ACL replaces 20 existing State and Territory laws into one national law , the legislation was enacted in two main parts as Schedule 2 of the renamed Trade Practices Act 1974 (Cth) (TPA) - Competition and Consumer Act 2010 (Cth) (CCA) . Aforementioned this essay it will outline the key benefits of the implementation of the act. Furthermore it will critique the Act, whilst exploring the objectives of the legislation.
The merger between General Electric (GE) and Honeywell would have been the largest ever merger between two industrial companies, it would have increased GE’s size by almost a third. GE is a leading manufacturer of airplane engines and Honeywell is a leading producer of avionic systems (such as engine starters). It was a stand out merger as it was the first time a merger between two US companies had been solely derailed by the European anti-trust Commission (EC), after having been cleared by the US Department of Justice (DoJ).
The anti-trust laws were set in place to promote vigorous competition but also to protect the consumer from unfair mergers and business practices. The first antitrust law that was passed by Congress is called the Sherman Act and is a “comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade” according to www.FTC.gov . Later in 1914 Congress passed two more laws, one creating the Federal Trade Commission Act (FTCA) and then the Clayton Act, which now create the three core federal antitrust laws that are still active currently. Although they have changed over the last hundred years, they still have the same concept: “to protect the process of competition for the benefit of consumers, making sure there are strong incentives for businesses to operate efficiently, keep prices down, and keep quality up” as stated by the FTC.gov website on The Antitrust Laws.
Reis, J. G., & Farole, T. (2012). Trade competitiveness diagnostic toolkit. Washington, D.C.: World Bank.
So as to define the impact of a merger on competition in the common market, it is suitable to consider the possible efficiencies claimed by the interested parties that might compensate the concentration’s negative effects on competition, and in particular the potential harm to consumers. If the efficiencies result in a balance between the “positive” and “negative” effects of a concentration, consequently the concentration might not significantly impede effective competition, in the common market or in a substantial part of it. To that end, the Commission should clarify the circumstances under which it may take efficiencies into account when determining the negative effects of a transaction.
Before granting merger forms The Bureau of Competition was committed to ensuring that involved companies do not create a monopoly in the market and hence reduce competition that may also affect the integrity of the services provided. In most cases the bureau controlling the start and the running of mergers uses the Hart-Scott-Rodino amendments to the Clayton Act (Clark, 2011). Before becoming a part of the merger it is important that FTC does an analysis of the merger to evaluate the effects the merger may have on the businesses. In addition, it is important that FTC gets to have a clear picture of the situation and how it is expected to affect the relations...
For almost 100 years the Better Business Bureau has offered many different Services and Programs that are essential to control a trustworthy relationship between a business and the customer. The BBB is offered in 50 States and 12 provinces, and was founded in 1912. The BBB currently has a total of 400,000 North American businesses that are accredited by the BBB. The BBB is a non-profit organization that focuses mainly on advancing marketplace trust. There are 128 independently incorporated local BBB organizations in the Canada and the US, coordinated under the Council of Better Business Bureaus (CBBB) which is situated in Washington D.C.
The last physical conflict with the Indian Nations ended more than 120 years ago however, conflicts over land and respective privileges given to all American Indians, tribes, and nation governments still experience battles only on a different plain. Scholastic research in 2003 identified approximately 613 federally recognized tribes with reservations; 384 of the federally recognized tribes exist in the lower 48 states and an additional 229 Alaska Native Villages with registered land of less than 100 acres to the Navajo reservation exceeding 1.6 million acres (Adamson, 2003). Why are cognitive battles over land, rights, and trust funds occurring in the U.S. Supreme Courts still today?
AntiTrust Laws Introduction Competition in economics is rivalry in supplying or acquiring an economic service or good. Sellers compete with other sellers, and buyers with other buyers. In its perfect form, there is competition among many small buyers and sellers, none of whom is too large to affect the market as a whole; in practice, competition is often reduced by a great variety of limitations, including monopolies. The monopoly, a limit on competition, is an example of market failure. Competition among merchants in foreign trade was common in ancient times, and it has been a characteristic of mercantile and industrial expansion since the Middle Ages.
In order for meeting the competition from other countries and companies, it is need for the Australia to have a super regulator, who can control and co-ordinate different activities, while analysing the economic performance of the country we can able to growth, but not in high rate. Most of the companies and other agencies are considered Australia as a land of opportunities. According to the report of Australian Institute of Criminology and the Australian National University, states the country is facing serious issues such as, Illicit Money Laundering and problems in the federal system, and ineffective policies taken by the companies. One of the main reason, in which the country is not performing, it is because of the lack strong
In 1934 the Securities Exchange Act created the SEC (Securities and Exchange Commission) in response to the stock market crash of 1929 and the Great Depression of the 1930s. It was created to protect U.S. investors against malpractice in securities and financial markets. The purpose of the SEC was and still is to carry out the mandates of the Securities Act of 1933: To protect investors and maintain the integrity of the securities market by amending the current laws, creating new laws and seeing to it that those laws are enforced.
would like to put you in a situation and show you how a consumer can
Competition law in the European Union has developed from being an uncertain preoccupation of a few economists, lawyers and officials to one of the leading competition law system in the globe. Nonetheless, in agreement with most commentators, there are inherent flaws within the EU Commission’s procedures. This paper aims to provide an account of concerns in the current system, drawing comments from scholars and EU officials in order to demonstrate both benefits and shortcomings of the system. An overview of the legal and policy debate of the current EU Competition enforcement will be presented as the introduction. Policy concerns such as prosecutorial bias and self-incrimination in enforcement powers will be the main subjects for the purpose of this paper, followed by analysis of the EU commission structure, in particular checks and balances and the hearing process, both of which have been claimed being incompatible with the ECHR. A comparison with the US Antitrust system will also be paralleled through out this essay in order to demonstrate a clearer examination. This essay will conclude with the Commission’s flaws that have effected on the upcoming UK competition law reforms.
After they have purchased a good or a service, consumers are protected by a series of assurances stated in the Consumer Guarantees Act. The Consumer Guarantees Act is designed to foster fair competition, and to protect the interests of consumers. The Act holds the supplier responsible for ensuring that the goods or services sold to consumers are reasonably safe and fit for purpose, and of satisfactory quality (New Zealand Legislation, 2013). Goods must be suitable for their usual function, safe to use, durable and must last for a reasonable time, have no minor defects, and acceptable in look and finish (Commerce Commission, 2014). Under this Act, suppliers must guarantee that the services are performed and completed with reasonable care and proficiency (New Zealand Legislation, 2013). Services must be carried out with sufficient precision fit for the specific purpose they were supplied for (Commerce Commission, 2014). They must also be completed within a reasonable time and provided at a reasonable price, if no time for completion, or price or pricing formula has been agreed beforehand. The Consumer Guarantees Act applies to all goods and services normally bought for personal or household use and consumption. Goods may include but are not limited to apparels, electronic equipment, kitchen appliances, and food. Services may be in the form of plumbing, repairs, accommodations, banking, and utilities such as gas, electricity, telephone, and water. The Act applies to goods and services sold on credit and goods hired out for use (Consumer Affairs, 2014). Also, Consumer Guarantees Act provides that consumers have certain rights of redress against suppliers and manufacturers if goods or services fail to comply with a guarantee. This mean...