If you`re in the business industry, you probably have an idea of what is meant by competition law. But in case you`re not, here`s a simple and clear definition of this branch of law.
By definition, competition law, also known as antitrust law, regulates business activities by maintaining market competitions. One of its aims is to ensure the market would enjoy healthy and fair competition by preventing any unethical practices which will limit or restrict the competition within businesses.
With this currently in place, some of you might be wondering as to how this can affect businesses. You’ll find out about that here.
It Promotes Positive Effect to Companies
With competition law, it has been positively affecting businesses in so many ways. This includes establishing a business culture where organisations can maintain a healthy amount of competition which pushes each and one of them to improve and develop.
No Organisation Can Abuse the Dominant Position
Competition law also ensures that an organisation that is currently in a dominant market position can abuse this position to hurt other businesses. In other words, it prohibits companies from engaging in practices that will distort or harm the equal playing ground of everyone in the industry.
It Provides a Number of Benefits to Consumers
Aside from promoting competition, another way competition law can affect businesses is by encouraging them to be better. This, in turn, would positively impact the consumers. It provides customers with a variety of options. According to a competition lawyer in HK, this law also provides consumers the freedom to choose where they want to get the services or products they need.
One of the core objectives of competition law is to prevent firms with powerful positions from manipulating and controlling the market to their advantage. With this law in place, companies, big or small, can enjoy fair playing fields which encourage dynamics in the industry.
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