What is the purpose of competition policy, also known as anti-trust policy?

The purpose of competition policy, or anti-trust policy, is fundamentally aimed at regulating competition within markets to promote fair business practices and prevent monopolistic behavior. This includes ensuring that no single entity can dominate a market to the detriment of competitors and consumers. By fostering an environment where various businesses can compete freely, competition policy aims to maintain market integrity, encourage innovation, and protect consumers from unfair practices, such as price-fixing or collusion.

Competition policies can involve the examination and regulation of mergers and acquisitions to prevent excessive concentration of market power, the dismantling of monopolistic companies, and setting guidelines against anti-competitive practices. By focusing on regulating competition rather than limiting it, these policies ultimately benefit consumers through better prices, more choices, and improved quality of goods and services. This regulatory framework is crucial to a well-functioning market economy, ensuring that the benefits of competition are realized by all stakeholders involved.