Competition Act 1998 Analysis

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Competition Act 1998 which is one of the major source of competition policy in United Kingdom (UK), is enforced by Office of Fair Trading (OFT). There are two main types of anti-competitive behaviour addressed by the act, which are anti-competitive agreements and abuse of dominant market position. The purpose of the act is to encourage and improve the competitive process between businesses, and to ensure the benefits of consumers during the competitive process (Business Case Studies, n.d). Competition Act 1998 is also used to prohibit the anti-competitive agreements between businesses, and the abuse of a dominant position by a business. Businesses that infringe the act, will impose the financial penalty up to 10% of global turnover of the business.…show more content…
For example, Marks and Spencer (M&S) has to compete fairly with the businesses in the same industry, such as Tesco and Sainsbury, due to the implementation of Competition Act 1998 in UK. M&S can only improve the quality of goods and services offered to the customers, instead of charging the goods and services at excessively high prices, in order to ensure the fairness of competition (EC, n.d.). However, M&S able to attract customers, establish good brand image and reputation, as well as expand the market share, due to the quality goods and services. Thus, better quality of goods and services can be produced by M&S, due to the implementation of Competition Act 1998. Besides, the…show more content…
For example, a regional policy is established in European Union (EU), where there are large internal disparities of income and opportunity among the regions in EU. The purpose of the regional policy in EU is to reduce regional disparities, improve quality of life of citizens, and boost economic growth. EU regional policy is also used to prevent further regional imbalances in the EU, by transferring the resources of European to the problematic regions or less developed regions, using financial instruments of European Union (Europa, n.d.). In addition, the three main objectives of EU regional policy are convergence, regional competitiveness and employment, and European territorial cooperation (Curtis,

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