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Evaluation of UK Competition Policy
- Only a few mergers are referred in 1997 10/186. Most of these were prohibited, perhaps more should be referred
- Size and scope of market is important for determining policy, a narrower market gives rise to greater concentration
- Mergers depend on industry and local conditions
- Pragmatic. Dominant market power doesn’t necessarily lead to market dominance. Contestability is very important, if there is freedom of entry and exit the market will be competitive
- Secret and tacit collusion difficult to tackle
- High fines do bite e.g. British Steel and toy companies
- Competition in UK has to be weighed against international strength
Essays and Revision Notes on Competition Policy
Evaluation of UK Competition Policy