Chapter 2:
Objectives and Benefits of Competition Policy
2.1.2 For the purposes of the Regional Guidelines, the term “competition policy”
refers to public policies and general governmental directions aimed at
introducing, increasing and/or maintaining competition. It does include, but
it is not limited to, “competition law”, which refers, more in particular, to legal
acts (in the form of laws, regulation, guidelines, etc.), including the
establishment and maintenance of a competition regulatory body, aimed at
preventing anti-competitive business practices, abuse of market power and
anti-competitive mergers. Hereinafter, the Regional Guidelines will use the
general term “competition policy”.
2.2.1 The most commonly stated objective of competition policy is the promotion
and the protection of the competitive process. Competition policy introduces
a “level-playing field” for all market players that will help markets to be
competitive. The introduction of a competition law will provide the market
with a set of “rules of the game” that protects the competition process itself,
rather than competitors in the market. In this way, the pursuit of fair or
effective competition can contribute to improvements in economic
efficiency, economic growth and development and consumer welfare.
2.2.3 Besides contributing to trade and investment policies, competition policy can
accommodate other policy objectives (both economic and social) such as the
integration of national markets and promotion of regional integration, the
promotion or protection of small businesses, the promotion of technological
advancement, the promotion of product and process innovation, the
promotion of industrial diversification, environment protection, fighting
inflation, job creation, equal treatment of workers according to race and
gender or the promotion of welfare of particular consumer groups.
2.2.5 Each AMS may decide which of the objectives it wishes to pursue, taking into
account its own national competition policy needs.
2.3.1 The objectives of competition policy can be achieved through the setting up
of one or more competition regulatory bodies.
2.3.2 Each AMS may consider adopting a proactive stance to promote competition
by taking action not only against infringements of competition law but also
by undertaking a review of its institutional arrangements and public policies,
identifying those that interfere with the appropriate functioning of the
markets, and then adopting the appropriate policy changes.