In the European Union, there are some laws aboutcompetition and how that should affect EU companies and the citizens in our everydaylife. Competition law is a law that promotes the maintenance of market competition.Competition gives to companies the courage to offer products and services atthe most beneficial terms also encourage them to be more efficient and innovativetherefore to reduce prices. Competitionpolicy in Europe is playing crucial role of the internal market, it makes companies to compete fairly andprovides consumers with the lowest price but at the same time with high quality.Competition makes companies to be constant under pressure so to be possible to offerthe best quality, the lowest price and at the same time to be profitable, becauseconsumers have the choice to go to another company. All companies aim to get thebiggest share in the market therefore the commission try to prevent that sothey are monitoring the agreements between companies that restrict competition,for example companies making cartels so they can control prices or divide themarket, but in EU this is illegal, and heavy fines are been applied to those companies.
EU competition policy is trying to persuade an effective infliction ofcompetitive rules in the sectors of anti-trust and cartels, mergers and stateaid, maintaining competition instruments aligned with market developments. The commissionfollows an economic approach as well as legal to the evaluation of competitionissues. The European Commission brings cases in a wide variety of differentsectors of industrial activity therefore it is affecting many products used byconsumers.
In some cases, may cover products directly used by consumers, whilein others the cases may relate to products or materials further up the supplychain. In some cases that there is a violation of the law commission has thepower to investigate and also take decisions for fines for those violations. Nationalcourts also have the power to decide whether a particular agreement complieswith EU competition law or not. Companies and consumers can also claim damagesif they have suffered as a result of illegal behavior restricting competition.The investigations are being applied to companies that are violating rules orwill violate rules, the commission can act before or after the violation happenin order to protect the competition market. Companies and EU governmentsregularly lodge and sometimes succeed in appeals against Commission decisions.European competition law is important also for the consumers as it is for thecompanies and its changing our life. EU making this law to protect consumers andcompanies.
Every dayconsumers in the EU with the latest economic situations are trying to spendless in products and services but how they will achieve that when companies aremaking illegal agreements such as fix prices, limit production, share market orcustomers, and then the competition law comes to solve that crucial problem andaffecting positively the consumers. Competition law offers low prices for all,and it’s the simplest way for a company to gain market share which in this caseEU competition law is pushing prices down, not only affecting all the people toafford the products but also encourage the companies to build up a strongeconomy. For consumers it’s not always the low prices that they can get it’salso the high quality that companies provides customers with, competition makescompanies not only to lower their prices but to make products with the bestpossible quality in order to attract customers, high quality products last longeror work better therefore it is affecting consumers economy positively. The consumersin EU have more choices that means that if you can’t afford a product or aservice there is always replaceable product also companies will try to make productdifferent from the others so consumers can select various products which have aperfect balance between price and quality. Most important role in competitivemarket is that you have an innovative environment, companies trying to find newways of design production techniques and services.
Competition within helpsmake European companies stronger outside the EU too, and also to be ableto hold on their own against global competitors.