Should Competition Law Apply to Markets where No Firm Dominates and there are No Illegal Agreements?

April 9, 2011

(by Bruce Lyons) The UK competition regime has a powerful weapon that is available to almost no other country.  It can investigate markets that appear not to be working competitively despite the lack of a dominant firm, then choose to impose remedies ranging from structural divestments to legally binding behavioural commitments.  Other regimes, including the European Commission, can choose to investigate markets, but none can impose such powerful remedies (except Israel, which recently replicated the UK model).  The UK government regards this as one of the key strengths of its competition regime.  Is it?  And would it benefit from major reform? Read the rest of this entry »