Competition Law Essay Example | Topics and Well Written Essays - 1500 words - 1

Competition Law - Essay Example The important objectives of the practice of competition law are to ensure the entrepreneurs by providing the opportunity to compete in the market economy and protect the interest of the consumer welfare. This essay will discuss the purpose of competition law. Competition law is a law that focuses on the control of anti-competitive agreements, monopolies and mergers between organizations. This area of legal firmament also included cartels (LSE 1). Restrictive business practices can often lead to market failures. The failure in the market can be dealt by the competition law. There are several kinds of restrictive business practices that include abuse of dominance, cartelization, tie-in sales, predatory pricing, re-sale price maintenance etc. Before discussing the purpose of the competition law, it is vital to note the origin and history of the law. In the late 19th century and early 20th century, the competition law emerged. The competition law was first enacted in the United States. The Sherman Act of 1890 is the first Federal Statute. This act was enacted to tackle monopolies and oligopolistic cartels. In the wake of Industrial Revolution, the large trusts were formed. This act emerged against the predations and supremacy of the huge trusts. The three major elements of modern competition law are merger control, anti-competitive agreements and abuse of dominance. Other important United States legislations were Hart-Scott-Rodino Act, the Clayton Act, the Robison-Patman Act and the Federal Trade Commission Act. The proliferation of competition law has not been only in North America and Europe but also around the globe. After the enactment, competition law became one of the crucial pillars of a market economy. The main purpose of the law is to maintain market competition and improve economic efficiency. It can be regarded as the force that drives companies to improve their efficiency. After enhancing the efficiency, it drives companies to pass its