Competition policy is about applying rules to make sure businesses and companies compete fairly with each other. Research shows that the most popular sites worldwide are Facebook with 2.38 billion monthly active users, You Tube (2 billion users),WhatsApp (1.6 billion users). You tend to regularly upgrade your product as well as innovate so that you stay ahead … If your organisation opposes competition law, you will face serious repercussions for this unethical business conduct. These barriers can take the shape of difficulty in finding the exact raw materials, high fixed costs, as well as higher start-up costs. Every course has it’s own advantages and disadvantages, below are the advantages and disadvantages of studying law. The biggest disadvantage of this type of market structure is that there is no incentive for sellers to innovate or add more features to the product because in case of perfect competition profit margin is fixed and seller cannot charge higher than normal price which is prevailing in the market because consumer will move to other sellers hence sellers keep selling standardized product at price … Without competition legislation, a dominant entity can potentially kill off its competition, or competition in upstream/downstream markets. Better quality of work. Registered Company No. Why is competition policy important for consumers. The key anti-competitive business conducts to be aware of are: - Invalid agreements, which demonstrate evidence of sharing sensitive and confidential business and market information. Effectively, this will reduce the risk of anti-competitive practice from taking place within the workplace. Learn more. Enforcement of competition law principles will allow businesses to thrive in an ethical manner whilst avoiding corruption in the business sector. You need to be aware of the disadvantages as well as the advantages of working in the legal sector. - The guilty business will also be at risk of action from third parties - either customers or business associates - which have been affected by the anti-competitive conduct of the guilty business, meaning they could face further fines and certainly a tarnished reputation. If a business is found guilty of infringing competition law they could face a fine of up to 10% of the business' global turnover. For example, these agreements can incorporate price fixing, sharing of the market, controlling production and bid rigging. Separate each address with a semi-colon (;) Example: name1@company.com; name2@organisation.com From (your details) Name * Email address * … Consumer benefits, Consumers charged at lower price. What are Horizontal Agreements and Hardcore Cartels? 5) By legislation, social control is possible Disadvantages of Legislation - - Horizontal or vertical agreements which seem to possess an anti-competitive goal, such as sharing information about future pricing to allow the organisations involved to co-ordinate their pricing. When you send us a message one of our friendly, knowledgeable eLearning experts will contact you as quickly as possible. 13 points Advantages and disadvantages of competition law Ask for details ; Follow Report by RockAtIf6024 13.12.2017 Log in to add a comment Answers shaiksalman580 Self-improvementAnother way in which workplace competition can be an … Competition law does not make merely having a monopoly illegal, but rather abusing the power that a monopoly may confer, for instance through exclusionary practices. There are also advantages, disadvantages and even limitations to how they can be used. Understanding what these are can help you know whether or not you should use a noncompete agreement. Consequently, it is important for businesses to remain compliant with competition law to ensure the market is dynamic and valuable. Competition law affects businesses positively as it establishes a business culture which maintains competition, thus allowing businesses to improve and develop in … Who Enforces the Rules on Competition Law. Please leave your details below and a member of our team will get back to you. Essay on competition advantages and disadvantages We're open to new and returning patients following the recommended guidelines for our patients and staff. Low prices for all: the simplest way for a company to gain a high market share is to offer a better price. If your business complies with competition law, then competition law will affect your business in a positive way by ensuring a dynamic and prosperous market is maintained. In a competitive market each individual business will be fighting for customers in order to gain profit. 4) Legislation makes new law to the society. The problem of monopoly The first drawback will be a potential of monopoly by big companies. Better quality: Competition also encourages businesses to improve the quality of goods and services they sell – to attract more customers and expand market share. Monopolistic Competition: Features, Advantages and Disadvantages The ... of brand names for consumers is that it allows them to easily identify the product and brands are well protected by law, and thus competing companies can not fool customers by closely mimicking an established brand. Mediation—advantages and disadvantages Send to Email address * Open Help options for Email Address. Competition law encourages businesses to better themselves, whilst positively impacting consumers, who have a better range of services to choose from due to market competition. Disadvantages of privatization 1. If you create value for your competitors it will make your business sector more competitive overall. More choice: In a competitive market, businesses will try to make their products different from the rest. Advantages and disadvantages of competition The question of whether competition brings out advantages or disadvantages is the tocpic of numerous studies. In a competitive market, prices are pushed down. Social sciences. In other words deadlines are met. Price:businesses will compete for custom by keeping prices low offering good val… What does competition law prevent from happening in the business sector? This is a fairly straight forward point to make but it is important that I make this clear before moving on. Being competitive, just like many other things in this world, has an advantage and a disadvantage to it—it just depends how you take it. Low prices for all: the simplest way for a company to gain a high market share is to offer a better price. Advantages of Studying Law Stable Income. Therefore, each business will have to differentiate itself from the crowd and there are three typical ways this can be achieved. How does Competition Law affect Businesses? The employee may not be too sympathetic towards his or her employees as he or she may be interested … Some people assert that it helps the world to develop, others argue that it ruin people's relationship. In 2016, we reached a series of decisions against companies for breaking competition law and issued a total of £142 million in fines – including a record fine totalling £90 million against pharmaceutical companies Pfizer and Flynn Pharmafor charging excessive and unfair prices for phenytoin sodium capsules, an anti-epilepsy drug. The Advantages and Disadvantages of Non-Competition Agreements Share. 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