The competition law includes all laws and regulations to ensure compliance with the principle of freedom of trade and industry. Essentially, the competition law pertains to monitoring issues around anti-competitive practices (cartels and abuse of dominance), merger control and the implementation of state support.
Failing to declare or accept competition, the role of competition law is often to force companies to compete, or endure.
The protection of competitors is not the primary concern of competition law, though, but rather the macroeconomic functioning of the market and in particular the pursuit of economic efficiency.
Modern competition law has transformed to boost and sustain competition in markets chiefly within a given national territory. National competition law is typically restricted to act only within its native territorial borders, unless it has significant effects broader economic implications.
It is designed to prevent monopolies and create economic stability, it is also the subject of protection of competition. A final legal definition of competition is not recognized, under competitive behavior but the concern of market participants is apprehensible, to give themselves advantages over other market participants.
In practice, according to the weight of competition policy, rules of competition law and wider economic law are intended, simultaneously or alternatively to boost competition between companies to ensure access to the market and market transparency. Protect existing competition by punishing unfair competition, and elusive competitive practices.
As well as restrict or prevent competition in certain cases by allowing certain entities to evade the application of competition law (for exclusively social prerogatives as regards the public). Or by granting temporary monopolies to encourage research (intellectual property patents).
The protection of international competition is regulated by international competition agreements. In 1994, with the closing of the Uruguay Round of GATT Multilateral Negotiations, the World Trade Organisation (WTO) was established. The Agreement Establishing the WTO incorporated a a number of limited provisions regarding numerous cross-border competition factors.
The competition law provides a number of offences and requirements. The unfair competition between firms is not a criminalization aspect of the competition law, to the extent that it does not condone the unfair behavior of a company in the market. And the failure of a business concern to observe the applicable rules in face of competition.
There are financial penalties enforced on perpetrators which include fines imposed by the competition authorities, while victims of anti-competitive practices may also bring an action in relation to civil liability.