Competition Policy

Definition of Competition Policy: Government policies to prevent and reduce the abuse of monopoly power

Abuse of monopoly power can lead to market failure and be against the public interest. Therefore Govt’s are concerned to intervene and protect the interests of the consumers

1998 Competition Act sought to bring the UK into line with EU competition policy

The OFT is responsible for investigating suspected abuses of monopoly power and engaging in prohibited practices. There are 2 main types of behaviour they investigate: